Milling & Baking News - September 12, 2017 - 42

Ingredient Week X

Wheat Futures
Wheat futures posted mixed changes
last week. Winter wheat futures posted
minor adjustments, but Minneapolis
wheat futures registered double-digit
advances with the widest gains scored
in the September and December futures,
up 18¼c and 15c, respectively.
The value of the U.S. dollar declined
to the lowest level since January 2015,
which was generally supportive to commodity prices, including wheat futures.
The U.S. Department of Agriculture indicated net export sales of wheat during
the week ended Aug. 31 totaled 375,500
tonnes, down 30% from the previous week
and down 26% from the prior four-week
average. The total was toward the low end
of pre-report trade estimates that ranged
from 350,000 tonnes to 550,000 tonnes.
Russian wheat exports were outpacing those of a year ago, which exerted a
downward tug on world and U.S. wheat
prices. The U.S.D.A. in August forecast
the Russian wheat crop at a record 77.5
million tonnes, which would surpass
last year's record outturn by 5 million
tonnes. Since the U.S.D.A. issued its
forecast on Aug. 10, Russia's SovEcon
analysts raised their forecast for the Russian crop to 81.1 million tonnes.
The pressure record Russian wheat

production and exports was exerting
on world prices was seen as limiting the
rally potential in U.S. wheat futures.
A veteran crop observer noted high
internal rail costs in October-December,
when the fall crop harvest commands
center stage, will further limit the ability
of the United States to compete in world
wheat markets.
The U.S.D.A. indicated the spring
wheat harvest in the six key producing
states was 89% completed by Sept. 3 compared with 76% a week earlier and 78% as
the recent five-year average for the date.
Growers in the Great Plains have begun seeding hard red winter wheat. It
was uncertain how much wheat they
will plant. Before Kansas City wheat futures tumbled from contract highs posted in early July, it was expected growers
would plant more winter wheat than
a year ago. Planting intentions in the
meantime may have changed.
The spread between the Minneapolis
December future and the K.C. December
contract widened to $2.05¼ a bu compared with $1.93 a bu a week earlier. MBN

Millfeed
Millfeed trading was slow last week.
Most flour mills were down Monday for
Labor Day, but few were down for the full

three-day holiday period unless there were
fumigations. As a result, millfeed supply
was reduced but not significantly. Nearby
prices were higher in the Southwest and
Upper Midwest but were mostly steady in
other markets. Deferred prices also were
mostly unchanged to slightly higher.
Traders looked at the resumption of
weekend flour grind after the holiday,
and with little change in demand, expected what little price lift there was to
be short-lived. Weekend loads had been
difficult to sell except at sharp discounts
leading up to the holiday, and that scenario was expected to resume after the
holiday break. Delayed shipments from
a few flour mills that came back on-line
slowly or had other issues last week were
met with little pushback from buyers.
Millfeed already was well established
in feed rations, and there was little room
for additional demand. Plus, corn and
other feed ingredients were plentiful
and competitively priced.
Millfeed was $58 a ton in Kansas City
and $79 in Minneapolis, on a rail basis,
compared with corn at $115 a ton and
sorghum at $109 a ton, both K.C. Corn
gluten feed was steady at $121 a ton, distillers' dried grain was up $5 at $120 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
Sep. 8
Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

- Change from -
Sep. 1 Aug. 25

Week's
High
Low

Year
ago

High

$5.70

Season's
Low

$5.20

4.15½
4.41½
4.59
4.72

+3c
+2¾c
+2¾c
+2c

+11c
+9¼c
+8½c
+7½c

4.23
4.50
4.67¼
4.81

4.14
4.39¼
4.57¼
4.70¾

3.93½
4.18½
4.34½
4.45

6.01
6.08¾
6.13¾
6.19½

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

3.91½
4.20
4.38¼
4.53

(08-29-17)
(08-29-17)
(08-29-17)
(08-29-17)

4.13¾
4.37¾
4.59¼
4.73½

-6¾c
-1c
-¾c
+½c

+4¼c
+2½c
+1c
+1c

4.33½
4.48
4.69
4.81¾

4.12
4.35½
4.58
4.71¼

3.76
4.03½
4.24¾
4.39½

5.90
5.99
6.04¾
6.09½

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

3.98¾
4.22½
4.46
4.60¾

(08-28-17)
(08-29-17)
(08-29-17)
(08-29-17)

6.30¼ +18¼c
6.46¾
+15c
6.57
+14c
6.54¼ +12¾c

-20¼c
-22½c
-18¼c
-15c

6.38½
6.58
6.67
6.63¼

6.09¾
6.26
6.38
6.38

4.98½
4.94
5.04¾
5.14

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)

$4.70
$4.20
$3.70
S

D

M
Previous Year

J
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
58 @ 68
Southwest, f.o.b. truck
80 @ 90
Minneapolis
79 @ 89
Upper Midwest, f.o.b. truck 75 @ 85
Chicago West
92 @ 102
Central states, f.o.b truck 65 @ 73
Buﬀalo
60 @ 70
Southeast
60 @ 70
N. & S. California
109 @ 124
Los Angeles, f.o.b. truck 105 @ 120
Paciﬁc Northwest
85 @ 95
Upper Midwest, sacked
320
Wheat germ
220 @ 240

Sept.
58 @ 68
80 @ 90
79 @ 89
75 @ 85
92 @ 102
67 @ 75
60 @ 70
70 @ 80
109@ 124
105@ 120
85 @ 95

42 / September 12, 2017 XMilling & Baking News

- Change from -
Sept. 1 Aug. 25
-
+3@ +3
-
0@ +2
+9@ +9 +12@ +12
+9@ +9 +12@ +12
+9@ +9 +12@ +12
0@ -2 +7@ +5
-
+2@ +2
-5@ -5 +5@ +5
-
+5@ +5
-
+5@ +5
-
-

Year
ago
56@ 66
82@ 92
72@ 82
68@ 78
85@ 95
60@ 70
57@ 67
70@ 80
125@ 140
121@ 136
100@ 115

$3.50

Oct.-Dec.
67@ 77
110@ 120
76@ 86
72@ 82
89@ 99
85@ 95
68@ 78
85@ 95
114@ 129
110@ 125
85@ 95

Jan.-Mar. Apr.-June
69@ 79 53@ 63
115@ 125 95@ 105
76@ 86 69@ 79
72@ 82 65@ 75
89@ 99 82@ 92
87@ 97 67@ 77
70@ 80 50@ 60
87@ 97 70@ 80
119@ 134 119@ 134
115@ 130 115@ 130
85@ 95 80@ 90

S

D

M
Previous Year

J
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
S

D

M
Previous Year

J
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - September 12, 2017

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