Milling & Baking News - January 31, 2017 - 42

Ingredient Week X

Wheat Futures
Wheat futures declined last week.
World wheat supply-and-demand fundamentals remained mostly bearish, at
least looking toward the remainder of
the current marketing year. The transition to a new federal administration
that was skeptical about the value of
prospective and even long-standing
free trade agreements was unsettling.
The outlook for the winter wheat crop
improved following recent precipitation. These factors seemed to carry more
weight in traders' considerations than a
strong weekly export sales report issued
by the U.S. Department of Agriculture.
Last week's decline marked a retreat
from recent highs set the previous week.
On Jan. 17, the K.C. March future traded to its highest level since late August
2016, the Chicago March future traded
to its highest since late October, and the
Minneapolis future traded to its highest
since June 2016. The rally prompted an
increase in farmer wheat selling. Producer sales since have waned.
Additionally, the weaker tone was a
reminder that U.S. wheat supplies were
ample and world wheat supplies were
record large, certainly for the remainder of 2016-17. While the International
Grains Council the previous week made a

preliminary projection that 2017-18 world
wheat production will decline 17 million
tonnes, or 2%, from the record outturn
of 752 million tonnes in the current year,
world wheat ending stocks for 2017-18
were projected to decrease only 1 million
tonnes from a forecast record 235 million
tonnes in 2016-17. World wheat production in the coming year may fall below
this year's record, but the world still will
be flush with wheat.
Recent moisture across U.S. southern
Plains provided a partial offset to concerns over the U.S.D.A.'s recent lowerthan-expected estimate of U.S. 2017 winter wheat acres.
The U.S.D.A. indicated net export
sales of wheat during the week ended
Jan. 19 totaled 853,400 tonnes, up noticeably from both the previous week and
the prior four-week average and a marketing year high. The export total greatly
exceeded pre-report trade estimates
ranging from 200,000 to 400,000 tonnes.
While export sales certainly were supportive, Egypt's announcement it had
purchased 400,000 tonnes of Russian
wheat was not. MBN

Millfeed
Prices were mostly lower last week.
Demand was lackluster, in part because

recent weather in much of the country
has been benign. Snow in the Upper Midwest snarled some logistics last week but
didn't stimulate much buying urgency.
Nearby price declines in most regions
were relatively steep, as flour grind returned to normal schedules averaging
5½ to six days last week. Production was
finally fully past the holiday period including Christmas, New Year's and Martin Luther King Day, when the series of
three-day weekends led to curtailments
in grind. Traders in several markets said
they expected light schedules of weekend loads to be offered at discounts to
quoted spot prices. Truck transportation
was, for the most part, readily available.
The greater availability of material,
coupled with mostly subpar demand, was
a formula for price weakness. But market
participants weren't predicting further
steep declines ahead, instead suggesting
that values would likely drift in mostly
featureless trading in the near term.
Millfeed was $87 a ton in Kansas City
and $74 in Minneapolis, on a rail basis,
compared with corn at $122 a ton and
sorghum at $105 a ton, both K.C. Corn
gluten feed was steady at $130 a ton, distillers' dried grain was down $5 at $100
a ton, and dehydrated alfalfa was unchanged at $200 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu
Jan. 27
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

- Change from -
Jan. 20 Jan. 13

Week's
High
Low

Year
ago

High

$6.70

Season's
Low

$5.70

4.34¼
4.46½
4.58½
4.72¾

-8¾c
-8½c
-8c
-7½c

-14¾c
-14½c
-14¼c
-13c

4.46½
4.58¼
4.70
4.83¾

4.32¼
4.44¼
4.56¼
4.71

4.72
4.82¼
4.92¼
5.05¾

6.85½
6.85½
6.51½
6.03¾

(12-17-14)
(12-17-14)
(06-30-15)
(12-17-14)

3.99½
4.11½
4.23½
4.38¾

(12-07-16)
(12-07-16)
(12-07-16)
(12-07-16)

4.20½
4.34½
4.49¼
4.64

-7¾c
-8¾c
-9¼c
-9¼c

-5½c
-5¼c
-5½c
-5½c

4.34¾
4.48
4.62½
4.76¼

4.19¼
4.33
4.47½
4.62½

4.79¼
4.85
4.90½
4.99½

6.54½
6.48
6.27¼
5.90

(12-17-14)
(06-30-15)
(12-17-14)
(06-08-16)

3.92¾
4.06
4.20
4.22½

(12-23-16)
(12-23-16)
(12-23-16)
(01-27-17)

5.60
5.56
5.55¾
5.56¼

-8½c
-4½c
-2¾c
-2½c

-22¾c
-9¾c
-3½c
-5¼c

5.70¼
5.61
5.60
5.60½

5.57¼
5.52¾
5.53¼
5.55

5.00
5.05½
5.12
5.21¾

6.68
6.03
6.07½
6.09¾

(06-30-15)
(08-20-15)
(06-08-16)
(06-09-16)

4.90
4.99¾
5.09¾
5.20

(08-31-16)
(08-31-16)
(08-31-16)
(08-31-16)

$4.70
$3.70
J

A

J

O

Previous Year

Current Year

Chicago wheat futures
March contract, $ per bu

$6.50
$5.75
$5.00

Bulk middlings

$4.25

$ per ton, delivered rail unless noted
Spot
Kansas City
87 @ 97
Southwest, f.o.b. truck
117 @ 127
Minneapolis
74 @ 84
Upper Midwest, f.o.b. truck 70 @ 80
Chicago West
87 @ 97
Central states, f.o.b truck 92 @ 102
Buﬀalo
82 @ 92
Southeast
90 @ 100
N. & S. California
117 @ 132
Los Angeles, f.o.b. truck 113 @ 128
Paciﬁc Northwest
85 @ 85
Upper Midwest, sacked
327
Wheat germ
220 @ 240

Feb.
82 @ 92
112@ 122
69 @ 79
65 @ 75
82 @ 92
80 @ 90
80 @ 90
100@ 110
116@ 131
112@ 127
85 @ 95

42 / January 31, 2017 XMilling & Baking News

- Change from -
Jan. 20 Jan. 13
-22@ -22 -23@ -23
-18@ -18 -18@ -18
-10@ -10 -15@ -15
-10@ -10 -15@ -15
-10@ -10 -15@ -15
-
-14@ -14
-16@ -16 -13@ -13
-5@ -5 -10@ -10
-7@ -7
-3@ -3
-7@ -7
-3@ -3
-
-

Year
ago
100@ 110
125@ 135
83@ 93
79@ 89
96@ 106
84@ 94
71@ 81
83@ 93
107@ 122
103@ 118
110@ 125

$3.50

Mar.
Apr.-June July-Sept.
77@ 87
58@ 68 61@ 71
107@ 117 88@ 98 91@ 101
74@ 84
71@ 81 68@ 78
60@ 70
57@ 67 64@ 74
77@ 87
74@ 84 81@ 91
78@ 88
71@ 81 69@ 79
76@ 86
64@ 74 63@ 73
95@ 105 80@ 90 80@ 90
114@ 129 109@ 124 109@ 124
110@ 125 105@ 120 105@ 120
85@ 95
85@ 95 85@ 95

J

A

J
Previous Year

O
Current Year

Minneapolis wheat futures
March contract, $ per bu
$6.70
$6.20
$5.70
$5.20
$4.70
J

A

J
Previous Year

O
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - January 31, 2017

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