Milling & Baking News - August 29, 2017 - 34

Ingredient Week X

Wheat Futures
Wheat futures continued to slump
through midweek last week with Chicago and Kansas City futures setting new
contract lows. Minneapolis spring wheat
futures declined as well but continued to
trade more than $1 a bu above their lows
posted in mid-May.
One veteran wheat analyst, commenting on the steep slide from early-July
contract highs in wheat futures, said,
"This is one of the most relentless corrections of a rally in memory."
The U.S. Department of Agriculture indicated the spring wheat harvest was 58%
completed by Aug. 20 compared with
40% a week earlier and 51% as the recent
five-year average for the date. There were
occasional rain delays, which may have
exacted a toll on the quality of some of the
wheat remaining to be harvested.
The International Grains Council raised
its forecast for 2017-18 world wheat production by 10 million tonnes. The new forecast, 742 million tonnes, was down 2% from
the record outturn of 754 million tonnes in
2016-17. The increase in the production outlook was mostly the result of an upward
revision to the Russian wheat crop estimate. The I.G.C. estimated Russian wheat
production at record 80 million tonnes, up 9
million tonnes from the July projection. The

I.G.C. raised its forecast for 2017-18 Russian
wheat exports to 32 million tonnes, up 2.1
million tonnes from the July projection and
compared with the forecast for U.S. wheat
exports at 26.1 million tonnes.
The U.S.D.A. indicated net export sales
of U.S. wheat during the week ended
Aug. 17 totaled 386,400 tonnes for 201718, down 39% from the previous week
and down 11% from the prior four-week
average. The export sales number fell toward the low end of trade expectations.
Agriculture and Agri-Food Canada in
its August Outlook for Principal Field
Crops lowered its estimate for all-wheat
production in Canada to 27.3 million
tonnes from 28.4 million tonnes as the
July projection. The 2017 crop would be
14% smaller than the 2016 outturn.
Producers have begun planting winter
wheat. A few weeks back, it was assumed
farmers would increase plantings compared with a year ago. With the recent
retreat in wheat prices, though, there
was uncertainty over whether there will
be a significant increase in acres. MBN

Millfeed
Millfeed prices remained under pressure from ample supply, which was expected to worsen because of weekend
grind. Demand was good but not strong

enough to utilize available material.
Nearby values declined in all regions
last week except in the Southwest, where
truck-delivered material was higher, and
in the thinly-traded Pacific Northwest.
Deferred prices were steady to weaker
with pressure from lower corn futures.
While millfeed was being fully utilized
in feed rations, mainly due to favorable
pricing, demand still was short of supply
with traders consistently finding it difficult
to place material given that mills have been
running six to seven days in many areas.
While extra downtime over the Labor Day
weekend may lessen supply, traders began
to doubt if that would have enough impact
to give prices a boost as most feed mixers
were able to lay up extra inventory ahead
of the holiday, and flour mills ran extra
heavy in weekends before the holiday.
Some feed mixers in the Upper Midwest asked sellers to delay shipments
last week. A hoped-for boost in creep
feed demand also was in doubt.
Millfeed was $55 a ton in Kansas City
and $67 in Minneapolis, on a rail basis,
compared with corn at $115 a ton and
sorghum at $98 a ton, both K.C. Corn
gluten feed was down $10 at $115 a ton,
distillers' dried grain was $5 lower at
$115 a ton, and dehydrated alfalfa was
steady at $200 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu

Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

$5.70

Season's
Low

- Change from -
Aug. 18 Aug. 11

Week's
High
Low

Year
ago

High

4.04½
4.32¼
4.50½
4.64½

-10c
-10c
-10¼c
-10½c

-36¾c
-37c
-36¾c
-36¾c

4.16¼
4.43¾
4.62
4.74¾

3.96¼
4.24
4.42½
4.56¾

3.89¾
4.16¾
4.32¾
4.43¼

6.01
6.08¾
6.13¾
6.19½

(08-10-15)
(07-15-17)
(07-05-17)
(07-05-17)

3.96¼
4.24
4.42½
4.56¾

(08-23-17)
(08-24-17)
(08-24-17)
(08-24-17)

4.09½
4.35¼
4.58¼
4.72½

-6½c
-7¼c
-7c
-7¼c

-29¾c
-31¾c
-30½c
-31¼c

4.18¾
4.45
4.67¾
4.82¼

4.00¾
4.26¾
4.49¾
4.64¾

3.83½
4.07½
4.32
4.46¾

5.90
5.99
6.04¾
6.09½

(06-08-16)
(06-08-16)
(07-05-17)
(07-05-17)

4.00¾
4.26¾
4.49¾
4.64¾

(08-24-17)
(08-24-17)
(08-24-17)
(08-24-17)

6.50½
6.69¼
6.75¼
6.69¼

-18¼c
-13¼c
-7c
-2¾c

-23½c
-19c
-15c
-11½c

6.67¼
6.81
6.81
6.74¾

6.36
6.54
6.58¾
6.52½

4.92½
4.92¾
5.05
5.14¾

8.68½
8.43
8.16
7.92¾

(07-05-17)
(07-05-17)
(07-05-17)
(07-05-17)

5.20
5.35¼
5.52
5.59¼

(08-31-16)
(08-31-16)
(03-20-16)
(12-15-16)

Aug. 25

$5.20
$4.70
$4.20
$3.70
A

N

F
Previous Year

M
Current Year

Chicago wheat futures
September contract, $ per bu

$5.75
$5.00

Bulk middlings

$4.25

$ per ton, delivered rail unless noted
Spot
Kansas City
55 @ 65
Southwest, f.o.b. truck
80 @ 88
Minneapolis
67 @ 77
Upper Midwest, f.o.b. truck 63 @ 73
Chicago West
80 @ 90
Central states, f.o.b truck 60 @ 70
Buﬀalo
58 @ 68
Southeast
55 @ 65
N. & S. California
104 @ 119
Los Angeles, f.o.b. truck 100 @ 115
Paciﬁc Northwest
85 @ 95
Upper Midwest, sacked
320
Wheat germ
220 @ 240

- Change from -
Aug.
Aug. 18 Aug. 11
55 @ 65
-
-
80 @ 88 +5@ +3 +10@ +8
67 @ 77
-2@ -2
-2@ -2
63 @ 73
-2@ -2
-2@ -2
80 @ 90
-2@ -2
-2@ -2
60 @ 70
-7@ -7
-8@ -8
58 @ 68
-1@ -1
-2@ -2
55 @ 65
-5@ -5 -10@ -10
104@ 119 -5@ -5
-5@ -5
100@ 115 -5@ -5
-5@ -5
85 @ 95
-
-

34 / August 29, 2017 XMilling & Baking News

Year
ago
54@ 64
82@ 92
68@ 78
64@ 74
81@ 91
67@ 77
65@ 75
65@ 75
123@ 138
119@ 134
100@ 115

$3.50

Sept.
55@ 65
80@ 90
72@ 82
68@ 78
85@ 95
65@ 75
59@ 69
63@ 73
104@ 119
100@ 115
85@ 95

Oct.-Dec.
65@ 75
105@ 120
79@ 89
75@ 85
92@ 102
85@ 95
70@ 80
78@ 88
114@ 129
110@ 125
85@ 95

Jan.-Mar.
67@ 77
105@ 120
79@ 89
75@ 85
92@ 102
87@ 97
73@ 83
80@ 90
119@ 134
115@ 130
85@ 95

A

N

F
Previous Year

M
Current Year

Minneapolis wheat futures
September contract, $ per bu
$8.00
$7.50
$7.00
$6.50
$6.00
$5.50
$5.00
$4.50
A

N

F
Previous Year

M
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - August 29, 2017

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