Milling & Baking News - October 25, 2016 - 49

X
Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were 25c a
bu higher to 2c lower last week. The basis was choppy through midweek with
gains alternating with losses at low-tomiddle protein levels. For the week, 2cper-bu losses were posted on wheat with
protein of 12% through 12.4%. Premiums on ordinary and 11%-protein wheat
spiked on mill demand. The high end of
the premium range on ordinary wheat
moved into positive territory for the first
time since late June. Premiums advanced
12c a bu across the top third of the scale.
Mills sought to pry higher-protein
supply from firm country hands, which
was difficult in a low wheat protein
year, especially in the midst of a record
fall crop harvest. Cash spring wheat
was priced at wide premiums to hard
red winter wheat of the same protein,
which argued for even higher values in
the high-protein hard red winter wheat
basis. The basis on 13%-protein hard red
winter wheat was quoted 83c a bu higher than on 12%-protein wheat and $1.19
a bu higher than on 11%-protein wheat.
Mills earlier purchased a large portion of
their wheat needs for the fourth quarter of
2016, but there were gaps to fill. Fresh business in the market for to-arrive wheat remained lacking, though, with offers viewed
as too high by mills. At the same time, the
spread between bids and offers narrowed.
Rail transport has been mostly current
with shipping obligations, and mills were
receiving wheat for application against
October contracts. Trucks were another
matter. They were commandeered by the
fall crop harvest. This was expected to remain the case until the harvest ends.
The U.S. Department of Agriculture
indicated winter wheat was 73% planted
in Kansas by Oct. 16 (73% as the fiveyear average progress for the date), 78%

No. 1 hard winter
Basis Kansas City Dec., cents per bu
Oct. 21 - Change from -
Premium Oct. 14 Oct. 7
Ordinary -5@ 5
+7 @ +7 +7 @ +7
11%
36@ 46 +25 @ +25 +25 @ +25
11.2%
44@ 54
-
+24 @ +24
11.4%
52@ 62 +2 @ +2 +22 @ +22
11.6%
52@ 62
-
+17 @ +17
11.8%
52@ 62
-
+12 @ +12
12%
72@ 82
-2 @ -2 +10 @ +10
12.2%
72@ 82
-2 @ -2 +10 @ +10
12.4%
72@ 82
-2 @ -2 +10 @ +10
12.6%
83@ 93 +5 @ +5 +13 @ +13
12.8% 113@ 123
-
-
13%
155@ 165 +12 @ +12 +30 @ +30
13.2% 155@ 165 +12 @ +12 +30 @ +30
13.4% 155@ 165 +12 @ +12 +30 @ +30
13.6% 155@ 165 +12 @ +12 +30 @ +30
13.8% 155@ 165 +12 @ +12 +30 @ +30
14%
155@ 165 +12 @ +12 +30 @ +30
bakingbusiness.com / world-grain.com

Year
ago
70 @ 80
70 @ 80
70 @ 80
70 @ 80
70 @ 80
70 @ 80
70 @ 80
70 @ 80
70 @ 80
70 @ 80
75 @ 85
75 @ 85
75 @ 85
75 @ 85
75 @ 85
75 @ 85
75 @ 85

in Oklahoma (74%), 65% in Texas (62%),
99% in Nebraska (95%), 96% in Colorado
(94%), 96% in South Dakota (90%) and
84% in Montana (88%).
Concerns mounted over dryness in
the western sections of the belt.
The U.S.D.A. indicated the forecast record Kansas corn crop was 62% harvested by Oct. 9 compared with 64% as the
recent five-year average for the date. The
Kansas soybean crop was 15% harvested
versus 29% as the average.
Wheat growers in the Southwest -
Kansas, Oklahoma, Texas, Nebraska and
Colorado - collected $5,540,620 in loan
deficiency payments on 18,227,198 bus
of wheat during the week ended Oct. 17,
equating to average L.D.P. of around 30c
a bu. To date this crop year, Southwestern producers have collected $74,305,561
in L.D.P.s on 386,622,514 bus of wheat.
Kansas growers alone have collected
$45,492,911 in L.D.P.s on 241,769,119 bus
of wheat, or on 52% of the state's crop.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis were 15c a bu
higher to 5c lower last week. The sole losses were posted at 13% and 13.5% proteins.
The market's tone otherwise was firm.
Rail wheat shipments to the spot market remained crimped because of the
country's preoccupation with the fall crop
harvest. At the same time, rail shipments
were received for application against
October contracts. While mill demand
wasn't urgent, mills and resellers short
on commitments to mills were expected

to maintain interest in additional wheat
that may be offered on the spot market
and fill whatever storage space they had.
The North Dakota soybean harvest
was 86% completed by Oct. 16 compared
with 74% a week earlier and 79% as the
recent five-year average for the date.
SOFT RED. Wheat movement across
the Central states has slowed with the
expansion of the fall crop harvest. Individual mills raised bids in the hope of
encouraging the country to load more
wheat. Most mills have inventories and
pipelines adequate to see them through
the harvest but also would rest assured
if they saw more wheat offers.
Posted St. Louis-area mill bids for
nearby were firm at 45c over Chicago
December, up 5c a bu. Chicago mill bids
for nearby were at the Chicago December price. Toledo mill bids for October
were at the Chicago December price;
November, also December price. Elevator bids were 14c under Chicago December, deferred pricing only. Cincinnati
elevator bids were 30c under Chicago
December. Michigan white wheat mill
bids were 10c under December to the
Chicago December price. Gulf bids on
soft red winter wheat for October were
45c over Chicago December, down 2c.
The U.S.D.A. indicated winter wheat
seeding by Oct. 16 was 37% completed
in Missouri (35% as the five-year average
for the date), 43% in Illinois (50%), 52%
in Indiana (51%), 61% in Ohio (56%) and
56% in Michigan (67%). MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Dec., delivered Chicago\beyond cents
per bu
Oct. 21
- Change from -
Year
Premium
Oct. 14
Oct. 7
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
85
-5
...
...
13.5%
110
0 @ -5
...
105 @ 140
14%
120 @ 125 +10 @ +10 +5 @ -5 115 @ 130
14.5% 130 @ 135 +10 @ +10 +10 @ +10
130
15%
150
+15 @ 0
+25 @ +5 180 @ 200
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Oct. 21
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
October
+108 Dec.
118
November
+108 Dec.
117
December
+108 Dec.
117
January
+98 March 101
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
October
+45 Dec.
55
November
+57 Dec.
65
December
+60 Dec.
65
January
+47 March 55

Year ago
bid

...
+100 Dec.
+103 Dec.
+99 March

+60 Dec.
+60 Dec.
+55 Dec.
+55 March

Basis Kansas City, cents per bu
110
90
70
50
30
O

J

A

J

Cash wheat
Oct. 21 - Change from -
For shipment
Bid Oct. 14 Oct. 7
No. 1 Soft White, Track, Portland
$ per bu
September
4.62
-
+.10
November
4.77
-.06
+.10
December
4.81
-.07
+.02
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
September
0.95
-
-
November
0.95
-
-
December
0.95
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
September
1.15
-
-.10
November
1.15
-
-.05
December
1.10
-
-.05

Year
ago
5.59
5.59
5.59
1.10
1.10
1.10
1.30
1.30
1.20

Milling & Baking News XOctober 25, 2016 / 49
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - October 25, 2016

Table of Contents for the Digital Edition of Milling & Baking News - October 25, 2016
