Milling & Baking News - November 21, 2017 - 42

Ingredient Week

Wheat Futures
Wheat futures dropped last week. Winter wheat futures hovered not far above
contract lows set in late October. Minneapolis spring wheat futures declined following their previous week's break above
recent moving averages. The weight of record world wheat supplies and increased
competition in world export markets
from Russia made it exceedingly difficult
for the market to find fuel to sustain any
significant rally in futures.
Kansas City and Chicago wheat futures traded around 10c to 15c above their
year-ago levels, but Minneapolis wheat
futures were trading more than $1 above
their year-ago values and maintained a
premium of just more than $2 a bu compared with winter wheat futures. This reflected the limited supply of high-protein
wheat in the world because of low spring
wheat production in the United States
and Canada. The limited supply encountered strong demand, including from U.S.
millers, who sought higher-protein wheat
to blend with flour milled from hard red
winter, which for the second consecutive
year was low in protein.
Egypt purchased 240,000 tonnes of
Russian wheat last week despite controversy arising from an Egyptian court ordering a resumption of a zero-tolerance

for ergot in imported wheat.
The U.S. Department of Agriculture
indicated net export sales of wheat
during the week ended Nov. 9 totaled
489,300 tonnes for 2017-18, down 37%
from the previous week and down 7%
from the prior four-week average. The
previous week, export sales were a marketing year high because of the sale of at
least 450,000 tonnes of wheat to Iraq.
The U.S.D.A. indicated the 2018 winter wheat crop was 95% planted by Nov.
12, on par with the five-year average for
the date. Winter wheat emergence was
84% compared with 83% as the average.
The winter wheat crop was rated 54%
good to excellent (55% a week earlier),
35% fair and 11% poor to very poor. A
year ago the 2017 crop was rated 59%
good to excellent.
There were no new weather worries
for the 2018 winter crop in the United
States or Europe. A possibly smaller
Australian crop seemed to be priced in
market. MBN

Millfeed
Prices were mixed but mostly firmer
last week in slow trading. Markets were
tight amid solid flour grind and continued strong demand. Buyers and sellers
focused on the holiday week ahead.

A majority of U.S. flour mills planned
to run a reduced schedule Thanksgiving
week, with most going dark Thursday
and Friday at minimum. Several mills said
they would remain down the weekend after Thanksgiving, and a Kansas City mill
was said to be running only three days.
Buyers seeking extra millfeed before
the holiday kept markets tight, and any
cancellations were met with other buyers
adding to orders. Sellers were reluctant to
make offers without material in hand.
The week's biggest challenge still was
finding trucks. The holiday further complicated logistics that eased only slightly
as the fall harvest wound down.
The Southwest traded lightly, and it
seemed buyers' bins were full until "a
perfect storm" for spot loads - reduced
runtimes in a holiday environment and
midds' continued presence in rations -
spurred a demand-driven rally at midweek. But higher nearby prices weren't
sustainable further out.
Millfeed was $87 a ton in Kansas City
and $85 in Minneapolis, on a rail basis,
compared with corn at $114 a ton and
sorghum at $105 a ton, both K.C. Gluten
feed was steady at $130 a ton, distillers'
dried grain was $5 lower at $135 a ton,
and dehydrated alfalfa was steady at
$215 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu

Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

Week's
High
Low

Year
ago

High

4.22
4.39½
4.52¼
4.69½

-11¼c
-10½c
-9¾c
-8c

-4¾c
-5c
-5¾c
-5¼c

4.33
4.50
4.61¾
4.77

4.16½
4.33¾
4.46¾
4.63¼

4.13¾
4.31
4.43
4.54

6.08¾
6.13¾
6.19½
6.23

(07-15-17)
(07-05-17)
(07-05-17)
(07-05-14)

4.13½
4.31¼
4.45¼
4.60¾

(10-31-17)
(10-31-17)
(10-31-17)
(10-31-17)

4.27¼
4.43½
4.54¼
4.66¾

-4¼c
-5½c
-5¾c
-6¼c

+1½c
-1c
-3¼c
-4¼c

4.32
4.49
4.60
4.73

4.18
4.35¾
4.47¼
4.60¾

4.08
4.25¼
4.39
4.53¾

5.99
6.04¾
6.09½
6.09½

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

4.16¼
4.33¾
4.46¾
4.60¾

(10-31-17)
(10-31-17)
(10-31-17)
(10-31-17)

6.46½
6.57¾
6.61¾
6.61½

6.23
6.37¼
6.43½
6.44¼

5.29¼
5.26½
5.30½
5.35½

8.43
8.16
7.92¾
7.75¼

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

5.35¼
5.52
5.59¼
5.57¾

(08-31-16)
(03-20-16)
(12-15-16)
(12-09-16)

6.35
6.50
6.56
6.57¼

-12½c +10¼c
-9¼c +11½c
-8½c +9¾c
-6¼c
+8c

$5.90

Season's
Low

- Change from -
Nov. 10 Nov. 3

Nov. 17

$5.40
$4.90
$4.40
$3.90
N

F

M
Previous Year

A
Current Year

Chicago wheat futures
December contract, $ per bu

$6.50
$5.50

Bulk middlings

$4.50

$ per ton, delivered rail unless noted
Spot
Kansas City
87 @ 97
Southwest, f.o.b. truck
127 @ 137
Minneapolis
85 @ 95
Upper Midwest, f.o.b. truck 81 @ 91
Chicago West
98 @ 108
Central states, f.o.b truck 93 @ 103
Buﬀalo
77 @ 87
Southeast
85 @ 95
N. & S. California
116 @ 131
Los Angeles, f.o.b. truck 112 @ 127
Paciﬁc Northwest
90 @ 100
Upper Midwest, sacked
320
Wheat germ
220 @ 240
42 / November 21, 2017

Nov.
87 @ 97
127@ 137
85 @ 95
81 @ 91
98 @ 108
93 @ 103
77 @ 87
85 @ 95
116@ 131
112@ 127
90 @ 100

Milling & Baking News

- Change from -
Nov. 10 Nov. 3
+3@ +3 +3@ +3
+5@ +5 +12@ +12
-4@ -4
-2@ -2
-4@ -4
-2@ -2
-4@ -4
-2@ -2
+10@ +10 +8@ +8
+3@ +3 +4@ +4
-
+5@ +5
+4@ +4 +2@ +2
+4@ +4 +2@ +2
-
+2@ +2

Year
ago
83@ 93
107@ 117
62@ 72
58@ 68
75@ 85
87@ 97
70@ 80
92@ 102
121@ 136
117@ 132
80@ 90

$3.50

Dec.
87@ 97
128@ 138
87@ 97
83@ 93
100@ 110
93@ 103
77@ 87
85@ 95
119@ 134
115@ 130
90@ 100

Jan.-Mar.
80@ 90
118@ 128
82@ 92
78@ 88
95@ 105
88@ 98
72@ 82
84@ 94
124@ 139
120@ 135
93@ 103

Apr.-June
60@ 70
85@ 95
71@ 81
67@ 77
84@ 94
70@ 90
58@ 68
75@ 85
119@ 134
115@ 130
83@ 93

N

F

M
Previous Year

A
Current Year

Minneapolis wheat futures
December contract, $ per bu
$8.20
$7.20
$6.20
$5.20
$4.20
N

F

M
Previous Year

A
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - November 21, 2017

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