Milling & Baking News - April 1, 2014 - 65


Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 13c a bu higher last week.
The basis was unchanged only in the case
of wheat with protein of less than 11.4%.
Premiums across the rest of the protein
scale advanced 5@13c a bu, bringing to a
halt a recent downtrend.
Underpinning the historically strong
hard winter wheat cash basis were
ongoing delays in rail shipments. Some
buyers sought to secure trucks to help
fill gaps in inventories left by the tardy
rail deliveries, but truck transport was
difficult to book with a dearth of drivers
a factor. It was suggested the Burlington
Northern Santa Fe railroad was
routinely 30 to 60 days behind schedule
in completing shipments of contracted
wheat, and the Union Pacific was
running 15 to 20 days behind schedule.
Mills have been buying wheat on the spot
market to fill the voids left in ownership by
the delayed shipments. When contracted
supply finally arrives, mills pull back from
the spot market, at least temporarily, which
was the case in the previous couple of
weeks. But when pipelines begin to wear
thin again, mills have no choice but to hike
bids in order to secure a portion of whatever
supply is offered for sale, which was the
case last week. Most expected significant
improvement in rail logistics to develop
only slowly. Railroads favored handling
freight to and from the Gulf at the expense
of other routes, which compounded the
problem faced by mills.
Farmer selling was limited. Producers
sold much of their remaining 2013 crop in
the past few weeks and pre-sold a portion
of the anticipated 2014 production.
Most hard winter wheat states updated
their crop condition ratings, and those
ratings continued to decline. The U.S.
Department of Agriculture field office in

No. 1 hard winter
Basis Kansas City May, cents per bu
Mar. 28 - Change from -
Premium Mar. 21 Mar. 14
Ordinary 125@ 135
-
-1 @ -1
11%
125@ 135
-
-5 @ -5
11.2% 125@ 135
-
-5 @ -5
11.4% 132@ 142 +7 @ +7 +2 @ +2
11.6% 138@ 148 +13 @ +13 +8 @ +8
11.8% 138@ 148 +13 @ +13 +8 @ +8
12%
138@ 148 +8 @ +8 +3 @ +3
12.2% 138@ 148 +8 @ +8 +3 @ +3
12.4% 138@ 148 +8 @ +8 +3 @ +3
12.6% 136@ 146 +6 @ +6 +1 @ +1
12.8% 136@ 146 +6 @ +6 +1 @ +1
13%
130@ 140 +10 @ +10 +5 @ +5
13.2% 130@ 140 +10 @ +10 +5 @ +5
13.4% 130@ 140 +10 @ +10 +5 @ +5
13.6% 130@ 140 +10 @ +10 +5 @ +5
13.8% 130@ 140 +5 @ +5 +5 @ +5
14%
135@ 145 +5 @ +5 +5 @ +5
bakingbusiness.com / world-grain.com

Year
ago
60 @ 75
70 @ 85
75 @ 90
80 @ 95
102 @ 117
105 @ 120
110 @ 125
110 @ 125
110 @ 125
110 @ 125
110 @ 125
115 @ 130
115 @ 130
120 @ 135
125 @ 140
135 @ 150
145 @ 160

Kansas rated the state's wheat condition
as of March 23 at 33% good to excellent
(34% a week earlier), 46% fair (46%) and
21% poor to very poor (20%). The crop
was 3% jointing compared with 11% as
the recent five-year average for the date.
The Oklahoma crop was rated 17% good
to excellent, (18% a week earlier), with
41% fair (45%) and 42% very poor to poor
(37%). Texas wheat was rated 11% good
to excellent (13%), 34% fair (35%) and 55%
poor to very poor (52%). Colorado wheat
was rated 36% good to excellent, 33% fair
and 31% poor to very poor compared with
12%, 40% and 48%, respectively, a year ago.
An oil spill halted ship loading at the
Port of Galveston for five days last week.
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 were 13c a bu higher to 70c lower
last week. The sole gain was posted
at the low end of the premium range
on 12%-protein wheat. The market's
undertone otherwise was weaker.
While the B.N.S.F. remained up to
60 days behind schedule in completing
some shipments, a wheat merchandiser
indicated there has been at least some
improvement in rail logistics in recent
days, including in Canada, where
conditions have been particularly bad.
At the same time, any improvements in
rail service were from abysmal levels.
Spring wheat stocks in the northern
ports of Duluth and Superior on March

21 totaled 13,764,000 bus, up from
13,598,000 bus a week earlier but down
from 17,102,000 bus at beginning of 2014.
SOFT RED. Mill bids on soft red winter
wheat were 5c a bu higher to 10c lower
last week. St. Louis mill bids on No. 1
soft red winter wheat for nearby were 30c
over Chicago May, down 10c. Chicago
mill bids for nearby were 25c over Chicago
May, down 5c; new crop, 15c under July.
Toledo mill bids for nearby were 20c
over Chicago May, up 5c; new crop, 10c
over July. Elevator bids were at 5c under
Chicago May; new crop, Chicago July price.
Cincinnati mill bids were 5c under Chicago
May, unchanged; new crop, 20c under July.
Elevator bids were 5c under Chicago May;
new crop, 25c under July. Mill bids in the
eastern Corn Belt, Southeast and East were
much stronger as subpar wheat quality in
these areas forced wheat buyers to reach
out to the west to draw supply. Michigan
white wheat mill bids were the Chicago
May price to 50c over; new crop, Chicago
July price to 25c over. Gulf bids on soft
red winter wheat for March were 90c over
Chicago May, down 10c.
Three southern soft red winter wheat
states provided updated crop condition
reports for the week ended March 23.
The U.S.D.A. office in Louisiana rated
the state's crop at 47% good, 36% fair
and 17% poor. Mississippi wheat was
rated 66% good to excellent, 28% fair
and 6% poor. Georgia wheat condition
was 57% good to excellent, 38% fair and
5% poor to very poor. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis May, delivered Chicago\beyond cents
per bu
Mar. 28 - Change from -
Year
Premium Mar. 21 Mar. 14
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
125 +13 @ -25
-25
...
13%
100 @ 130 -70 @ -60 -80 @ -120
...
13.5%
...
...
...
...
14%
165 @ 197 -35 @ -33 -65 @ -68
125
14.5%
...
...
...
...
15%
250
-50
-35 @ -50 125 @ 150
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Mar. 28
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
March
185 May
...
April
+160 May
175
May
+150 May
167
June
... July
153
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
March
+90 May
95
April
+82 May
90
May
+63 May
75
June
+42 July
48

Year ago
bid

+130 May
+130 May
+130 May
+120 July

...
+50 May
+47 May
+40 July

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

Cash wheat
Mar. 28 - Change from -
For shipment
Bid Mar. 14 Mar. 7
No. 1 Soft White, Track, Portland
$ per bu
February
7.85
+.35
+.45
April
7.85
+.35
+.45
May
7.85
+.35
+.45
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
February
1.25
-
-.05
April
1.25
-
-.05
May
1.25
-
-.05
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
February
2.10
+.20
+.20
April
1.90
+.10
+.10
May
1.70
-
-

Year
ago
...
...
8.60
1.45
1.45
1.45
1.45
1.45
1.40

Milling & Baking News April 1, 2014 / 65
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Milling & Baking News - April 1, 2014

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