Food Business News - April 10, 2012 - 63

Ingredient Markets
Market commentary for one-week period ended April 5, 2012

Cash Wheat
HARD WINTER. Premiums on hard red winter wheat in Kansas City were 8c a bu higher to 10c a bu lower last week. With the exception of 14% protein, which declined 4c a bu, declines were restricted to the middle third of the protein scale, which was down 2c a bu except at 12%, which was down 10c. The sole gain was at 11.4%, reflecting a trade of cars late in the week. The cash market was mostly quiet during the holiday-shortened workweek. Mills received wheat shipments for application against April wheat contracts, which curbed some appetites for spot supply. Indications were some mills bought additional wheat for April-May. There were discussions about wheat sales for JuneJuly, but few transactions were concluded. Country elevators indicated it was difficult to procure producer commitments to provide new crop supply. This partly reflected lingering reluctance to sell too much wheat ahead until new crop prospects are more certain. Also, recent favorable weather and advanced crop progress may result in an early harvest and strong yields, which may affect the protein level of wheat producers will have to sell. Strong yields typically translate into a crop with lower average protein. Last year’s crop average protein was relatively high at around 12.5%. The hard winter wheat basis remained historically strong. At 120c over the Kansas City May future, the basis on 12%-protein wheat compared with 40c over a year earlier. Ongoing substitution by mills of hard winter wheat for more expensive spring wheat to the extent practicable continued to support the hard winter basis. In Fort Worth, bids on hard red winter wheat were unchanged at 10c over K.C. May; new crop, 5c under July. Salina truck bids at terminal elevators were 10c over K.C. May; new crop, 35c under July.

Hutchinson elevator bids were 12c over K.C. May; new crop, 30c under July. With the exception of Montana and South Dakota, state winter wheat condition ratings on April 1 were significantly better than a year earlier, according to the U.S. Department of Agriculture. Wheat rated good to excellent was 66% in Kansas (31% a year ago), 75% in Oklahoma (16%), 34% in Texas (12%), 41% in Colorado (16%), 63% in Nebraska (35%), 52% in South Dakota (62%) and 24% in Montana (70%). In the states with weaker ratings, wheat rated fair and above still was 67% in Texas, 82% in South Dakota, 79% in Colorado and 84% in Montana. The hard winter wheat states received additional rain last week. Record high March temperatures in Kansas pushed winter wheat crop progress in that state about three weeks ahead of last year and the five-year average for the date. The U.S.D.A. indicated 61% of Kansas’ crop was jointing by April 1 compared with 19% last year and 21% as the average. Oklahoma wheat was 9% headed and 85% jointed (compared with 65% jointed as the average), and Texas wheat was 19% headed compared with 8% as the average. HARD SPRING. Premiums on hard red spring wheat quoted as delivered Chicago/ beyond values in relation to the Minneapolis May wheat future dropped 10c a bu. The changes were posted at 14% protein. No other protein levels had quotes at the end of the week; through Wednesday, 15% protein was quoted and also was weaker. The U.S.D.A. indicated in its initial Crop Progress report of the season that spring

wheat planting in the six key states by April 1 was 8% completed compared with 1% on the same date last year and compared with 2% as the recent five-year average. Planting was 6% completed in North Dakota, 25% in South Dakota, 3% in Minnesota, 5% in Montana, 12% in Idaho and 20% in Washington. The North Dakota field office of the U.S.D.A. indicated April 3 was the average start date for fieldwork in the state, which was more than a month earlier than last year. SOFT RED. Mill bids on soft red winter wheat were mostly unchanged last week. In Kansas City, No. 1 soft red bids were unchanged at 33c under K.C. May to 47c over. Gulf bids on soft red for nearby were 64c over Chicago May, up 2c. St. Louis mill bids were unchanged at 20c over Chicago May. Chicago mill bids declined 5c and were at 10c over Chicago May; new crop, 25c under July. Mill bids in Toledo for nearby were unchanged at 30c over Chicago May; May, 35c over May; June, 30c over July; new crop, 40c over July; Elevator bids were 7c over Chicago May; new crop, 15c over July. Cincinnati nearby mill bids were at 10c over Chicago May, unchanged. Elevator bids for nearby were at 20c under Chicago May; new crop, 5c over July. Michigan white wheat mill bids for nearby were 25@40c over Chicago May; new crop, 40c over Chicago July. Winter wheat rated good to excellent as of April 1 was 78% in Illinois (55% a year ago), 81% in Indiana (61%), 45% in Ohio (64%), 66% in Michigan (69%), 73% in Missouri (65%), 56% in Arkansas (68%) and 86% in North Carolina (84%). FBN

No. 1 hard spring
Basis Minneapolis May, delivered Chicago/beyond cents per bu Apr. 5 — Change from — Year Premium Mar. 30 Mar. 23 ago Ordinary ... ... ... … 11% ... ... ... … 12% ... ... ... -20 13% ... ... ... 75 @ 80 13.5% ... ... ... 140 @ 225 14% 140 @ 180 -10 @ -10 +5 @ +20 265 @ 325 14.5% ... ... ... 375 @ 400 15% ... ... ... 450 @ 560 16% ... ... ... …

Cash wheat
Apr. 5 — Change from — For shipment Bid Mar. 30 Mar. 23 No. 1 Soft White, Track, Portland $ per bu February 7.00 — -.05 May 7.00 — -.05 June 7.00 — -.05 No. 1 Hard 11.5%, Track, Portland Basis Kansas City future, $ per bu February 1.00 — — May 1.00 — — June 1.00 — — No. 1 Spring 14%, Track, Portland Basis Minneapolis future, $ per bu February 1.45 -.05 — May 1.45 -.05 -.05 June 1.45 -.05 -.05 Year ago

No. 1 hard winter
Basis Kansas City May, cents per bu Apr. 5 Premium Ordinary 35 @ 50 11% 35 @ 50 11.2% 55 @ 70 11.4% 65 @ 80 11.6% 80 @ 95 11.8% 85 @ 100 12% 105 @ 120 12.2% 113 @ 128 12.4% 113 @ 128 12.6% 113 @ 128 12.8% 113 @ 128 13% 113 @ 128 13.2% 120 @ 135 13.4% 125 @ 140 13.6% 125 @ 140 13.8% 145 @ 160 14% 187 @ 202 — Change from — Mar. 30 Mar. 23 — — — — — — +8 @ +8 +8 @ +8 — +5 @ +5 — +5 @ +5 -10 @ -10 -3 @ -3 -2 @ -2 — -2 @ -2 — -2 @ -2 — -2 @ -2 — -2 @ -2 — — +4 @ +4 — — — — -7 @ -7 -7 @ -7 -4 @ -4 +6 @ +6 Year ago -48 @ -33 -32 @ -17 -24 @ -9 2 @ 17 15 @ 30 25 @ 40 28 @ 43 30 @ 45 30 @ 45 30 @ 45 35 @ 50 65 @ 80 70 @ 85 80 @ 95 80 @ 95 90 @ 105 95 @ 110

… … 8.00 0.45 0.45 0.35 0.3 3.00 …

Exporter bids and offers
For Apr. 5 shipment Bid Offer No. 1 Hard 12%, Track Gulf Basis Kansas City future, cents per bu April +118 May 124 May +115 May 124 June +98 July 105 July +98 July 105 No. 2 Soft Red, c.i.f. New Orleans Basis Chicago future, cents per bu April +64 May 70 May +63 May 65 June +50 July 57 July +50 July 57 Year ago bid

Canadian domestic milling wheat
… +50 May +55 July +55 July In-store, Thunder Bay, Canadian $ per tonne Western red spring 13.5% Soft white spring Amber durum U.S. $ per bu Western red spring 13.5% Soft white spring Amber durum Apr. 5 357.13 262.65 381.21 9.79 7.20 10.45 Change from Year Mar. 30 ago -.25 440.51 -10.84 312.83 -.58 430.58 0.05 -0.25 0.05 12.53 8.90 12.25

+75 +70 +41 +41

May May July July

April 10, 2012

FOODBUSINESS NEWS

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Food Business News - April 10, 2012

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