Milling & Baking News - March 4, 2014 - 49


Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were 20c a bu
higher to 35c lower last week. The basis
across the bottom third of the protein scale
advanced 2@20c a bu with the exception of
11.4% protein, which was unchanged. The
basis across the top thirds of the protein
scale declined 3@13c a bu while premiums
at 12.8% tumbled 35c a bu.
Offers of low-protein wheat have been
few and far between for several weeks,
leaving the bottom third of the protein
scale mostly untested and unchanged.
Rail cars with low-protein wheat finally
were offered last week, and they traded
at the higher levels. It wasn't so much that
there was a deep market for low-protein
wheat as it was wheat of virtually any
protein increasingly was viewed as having
similar value, mostly because of rail
transportation problems. The basis across
the middle third of the protein scale traded
both sides of unchanged before ending
the week even with the previous week.
All of the adjustments and price moves
related to a cash wheat basis that remained
historically strong with values propped up
by ongoing poor railroad performance.
The inverse in the cash hard red
winter wheat market remained intact,
reflecting in part the relatively high
average protein of the 2013 hard red
winter wheat crop and comparatively
ample supplies of competitively priced
spring wheat, especially given the record
Canadian spring wheat crop last year.
There was no significant business
in the market for to-arrive wheat
indicated with buyers and sellers still
concentrating their attention and efforts
on nearby transport challenges.
Farmers sold some old crop hard
winter wheat on the recent rally in wheat
futures. At the same time, they were wary
of becoming too aggressive in selling

No. 1 hard winter
Basis Kansas City May, cents per bu
Feb. 28 - Change from -
Premium Feb. 21 Feb. 14
Ordinary 115@ 125 +7 @ +7 +7 @ +7
11%
130@ 140 +7 @ +7 +7 @ +7
11.2% 148@ 158 +20 @ +20 +5 @ +5
11.4% 148@ 158
-
-10 @ -10
11.6% 155@ 165 +2 @ +2 -3 @ -3
11.8% 165@ 175 +5 @ +5 -8 @ -8
12%
165@ 175
-
-13 @ -13
12.2% 165@ 175
-
-13 @ -13
12.4% 165@ 175
-
-13 @ -13
12.6% 165@ 175
-
-13 @ -13
12.8% 130@ 140 -35 @ -35 -48 @ -48
13%
130@ 140 -13 @ -13 -28 @ -28
13.2% 130@ 140 -3 @ -3 -18 @ -18
13.4% 130@ 140 -3 @ -3 -18 @ -18
13.6% 143@ 153 -5 @ -5
-5 @ -5
13.8% 148@ 158 -5 @ -5 -20 @ -20
14%
150@ 160 -13 @ -13 -43 @ -43
bakingbusiness.com / world-grain.com

Year
ago
60 @ 75
70 @ 85
75 @ 90
85 @ 100
95 @ 110
100 @ 115
105 @ 120
105 @ 120
105 @ 120
105 @ 120
105 @ 120
112 @ 127
112 @ 127
112 @ 127
112 @ 127
112 @ 127
112 @ 127

what old crop supply they still owned
as they hoped prices may resume their
trek higher, which would reward them
for waiting. Also, they wanted to be more
certain of their new crop's prospects.
Fresh sales of new crop wheat were nearly
lacking with producers expected to wait
on significant forward commitments
until the 2014 crop breaks dormancy and
assessments of its potential made.
Temperatures turned colder across
the hard winter wheat belt. Snow cover
was lacking across most of the region
when the cold air invaded, although soil
moisture profiles were improved from
the slow melt of recent snow cover.
HARD SPRING. Premiums on hard red
spring wheat with 14% protein quoted
as delivered Chicago/beyond values in
relation to the Minneapolis May wheat
future advanced 20@90c a bu last week.
The cash spring wheat basis remained
historically strong and underpinned by
chronic poor railroad performance. Some
cargoes typically conveyed by rail have
been transported by truck to keep some
mills operating. The transport snarls also
resulted in mills having to be flexible
and innovative with regard to blending
wheat of different proteins to meet
required specifications, i.e. they couldn't
be guaranteed steady shipments of wheat
with a particular protein but often had to
take what was offered and blend the wheat
to accomplish the required end product.
The poor railroad performance
reflected competition for power from a

booming oil sector in North Dakota and
typical winter weather obstacles.
Farmer selling of spring wheat was
limited with producers disappointed with
the downturn in wheat futures prices.
Wheat stocks in the northern port
cities of Duluth and Superior totaled
14,491,000 bus on Feb. 21 compared
with 15,016,000 bus a week earlier and
17,781,000 bus a year ago.
SOFT RED. Mill bids on soft red winter
wheat were firm to 20c a bu higher last
week. St. Louis mill bids on No. 1 soft red
winter wheat for nearby were 55c over
Chicago May, up about 20c a bu from
the previous week. Chicago mill bids for
February were 30c over Chicago March,
unchanged; new crop, 20c under July.
Toledo mill bids for nearby were 15c over
Chicago May; first-half June, 15c over July;
new crop 10c over July. Elevator bids were
at the Chicago May price; new crop, the
July price. Cincinnati mill bids were the
Chicago May price; new crop, 30c under
July. Elevator bids were 5c under Chicago
March; new crop, 20c under July. Mill
bids in eastern Corn Belt, Southeast and
East were much stronger as subpar wheat
quality in those areas forced wheat buyers
to reach out to the west to draw supply.
Michigan white wheat mill bids were
the Chicago March price to 50c over with
higher bids more reflective of what must be
paid to procure quality supply; new crop,
the Chicago July price to 25c over. Gulf bids
on soft red winter wheat for February were
115c over Chicago March, up 3c. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis May, delivered Chicago\beyond cents
per bu
Feb. 28 - Change from -
Year
Premium Feb. 21
Feb. 14
ago
Ordinary . . .
...
...
...
11%
...
...
...
...
12%
170 @ 200
-
+45@ +75
...
13%
225 @ 300 +50 @ +90 +65@ +105
110
13.5%
...
...
...
...
14%
240 @ 300 +20 @ +40 +5@ +50 110 @ 120
14.5%
...
...
...
...
15%
...
...
...
120 @ 135
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Feb. 28
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
March
155 May
...
April
+153 May
...
May
+150 May
...
June
+138 July
145
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
March
+95 March 105
April
+83 May
100
May
+83 May
100
June
+53 July
57

Year ago
bid

+118 May
+120 May
+120 May
+110 July

+65 March
+65 May
+55 May
+35 July

Basis Kansas City, cents per bu
180
160
140
120
100

Cash wheat
Feb. 28 - Change from -
For shipment
Bid Feb. 21 Feb. 14
No. 1 Soft White, Track, Portland
$ per bu
February
...
...
April
7.20
-.15
...
May
7.20
-.15
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
February
...
...
...
April
1.55
-.10
-.20
May
1.50
-.10
-.25
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
February
1.95
...
-.35
April
1.95
-.05
-.35
May
1.95
-.05
-.35

Year
ago
...
8.70
8.70
1.25
1.30
1.30
1.40
1.35
1.30

Milling & Baking News March 4, 2014 / 49
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Milling & Baking News - March 4, 2014

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