Food Business News - October 23, 2012 - 75

Ingredient Markets
Market commentary for one-week period ended October 19, 2012

Cash Wheat
HARD WINTER. Premiums on hard red winter wheat in Kansas City were 2c a bu higher to 3c a bu lower last week. The cash market steadied after registering broad gains during the previous week. Wheat shipments against October contracts proceeded albeit in instances behind schedule, which provided underpinning to the market. Slow wheat movement across the southern Plains into the spot market reflected heavy producer sales in the weeks after harvest that left growers storing their remaining wheat in the hope of higher prices in coming months. Growers and elevators also had to attend to harvesting and handling the fall crops and the seeding of the 2013 hard red winter wheat crop. Individual Eastern mills bought hard winter wheat for shipment in JanuaryMarch across the Chicago gateway. Business in the market for to-arrive wheat otherwise was limited. The U.S. Department of Agriculture in its weekly Crop Progress and Condition report indicated winter wheat seeded as of Oct. 14 was at 81% in Kansas (76% as the 2007-11 average for the date), 75% in Oklahoma (69%), 67% in Texas (65%), 92% in Colorado (96%), 95% in Nebraska (95%), 77% in South Dakota (91%) and 74% in Montana (89%). Winter wheat emerged was 44% in Kansas (46% as the five-year average), 42% in Oklahoma (43%), 43% in Texas (37%), 51% in Colorado (72%), 47% in Nebraska (77%), 11% in South Dakota (67%) and 25% in Montana (53%). The U.S.D.A. field office in Kansas rated the state’s hard winter wheat crop condition at 2% excellent, 40% good, 48% fair, 8% poor and 2% very poor. Combines continued to make outstanding progress toward an early completion of the fall harvest. The corn harvest by Oct. 14 was 90% completed in Kansas, (66% as

the recent five-year average for the date), 88% in Texas (84%), 80% in Nebraska (26%) and 50% in Colorado (34%). The soybean harvest was 40% completed in Kansas (48% as the average) and 86% in Nebraska (65%) There was considerable discussion in hard winter wheat territory of the announcement that the CME Group will buy the Kansas City Board of Trade. The effect of a probable transfer of trading in the hard red winter wheat futures contract to Chicago (the CME Group indicated it would maintain the trading floor in Kansas City for six months) on a cash hard winter wheat market based in Kansas City was uncertain. HARD SPRING. Premiums on hard red spring wheat quoted as delivered Chicago/beyond values in relation to the Minneapolis December wheat future were 5c a bu higher to 5c lower last week. The basis on 14%-protein wheat spiked 20c a bu early in the week but pulled back toward the week’s end. Wheat movement on most days was sluggish across the northern Plains with producers and elevators concentrating on harvesting, handling, shipping and storing the fall crops. The corn harvest on Oct. 14 was 84% completed in North Dakota (14% as the average for the date), 90% in South Dakota (20%) and 90% in Minnesota (27%). The soybean harvest was 98% completed in North Dakota (64%), 98% in South Dakota (62%) and 99% in Minnesota (73%). SOFT RED. Mill bids on soft red winter

wheat were firm to 10c a bu higher last week. Kansas City bids on No. 1 soft red wheat remained withdrawn. Gulf bids on soft red for October were 57c over Chicago December, down 3c. St. Louis nearby mill bids were unchanged at 30c over Chicago December. Chicago mill bids were unchanged at 25c over Chicago December; new crop, 40c under July. Mill bids in Toledo for nearby were 10c over Chicago December, unchanged; November-December, 15c over December; January-March, 15c over March; new crop, 10c under July. Elevator bids were 23c under Chicago December; new crop, 15c under July. Cincinnati nearby mill bids were 10c under Chicago December, up 10c. Elevator bids were 10c under Chicago December; new crop, 12c under July. Michigan white wheat mill bids for nearby ranged from the Chicago December price to 40c over, unchanged. Winter wheat seeded by Oct. 14 was 46% in Illinois (48% as the five-year average for the date), 47% in Indiana (49%), 41% in Ohio (58%), 41% in Missouri (30%) and 76% in Michigan (64%). The corn harvest continued to make giant strides even with occasional rain interruptions. The corn harvest by Oct. 14 was 95% completed in Missouri (66% as the average), 87% in Illinois (53%), 61% in Indiana (43%), 31% in Ohio (24%) and 36% in Michigan (22%). The soybean harvest was 36% completed in Missouri (37% as the average), 69% in Illinois (66%), 51% in Indiana (57%), 38% in Ohio (49%) and 67% in Michigan (47%). FBN

Kansas City hard winter premiums, 12.2% No. 1 hard spring
Basis Minneapolis Dec., delivered Chicago/beyond cents per bu Oct. 19 — Change from — Year Premium Oct. 12 Oct. 5 ago Ordinary ... ... ... … 11% ... ... ... … 12% ... ... ... 60 13% 80 ... -20 75 @ 134 13.5% ... ... ... … 14% 80 @ 85 0 @ +5 -5 @ 0 135 @ 145 14.5% ... ... ... … 15% 70 @ 80 -5 @ -5 -10 @ -10 185 @ 190 16% ... ... ... … cents per bu
150 130 110 90 70 50 O J A J

No. 1 hard winter
Basis Kansas City Dec., cents per bu Oct. 19 Premium Ordinary 35 @ 50 11% 45 @ 60 11.2% 50 @ 65 11.4% 60 @ 75 11.6% 75 @ 90 11.8% 82 @ 97 12% 85 @ 100 12.2% 85 @ 100 12.4% 90 @ 105 12.6% 91 @ 106 12.8% 91 @ 106 13% 93 @ 108 13.2% 93 @ 108 13.4% 93 @ 108 13.6% 93 @ 108 13.8% 93 @ 108 14% 95 @ 110 — Change from — Oct. 12 Oct. 5 — +10 @ +10 — +10 @ +10 — +9 @ +9 — +9 @ +9 — +9 @ +9 — +7 @ +7 -3 @ -3 +3 @ +3 -3 @ -3 +3 @ +3 +2 @ +2 +8 @ +8 — +9 @ +9 — +9 @ +9 — +8 @ +8 — +8 @ +8 — +8 @ +8 — +8 @ +8 — +8 @ +8 — +10 @ +10 Year ago 30 @ 45 45 @ 60 55 @ 70 65 @ 80 80 @ 95 110 @ 125 110 @ 125 110 @ 125 110 @ 125 110 @ 125 115 @ 130 135 @ 150 135 @ 150 135 @ 150 145 @ 160 145 @ 160 180 @ 195

Cash wheat
Oct. 19 — Change from — For shipment Bid Oct. 12 Oct. 5 No. 1 Soft White, Track, Portland $ per bu September ... ... ... November ... ... ... December 9.00 +.10 +.05 No. 1 Hard 11.5%, Track, Portland Basis Kansas City future, $ per bu September 0.75 +.10 +.10 November 0.78 +.08 +.08 December 0.73 -.02 -.02 No. 1 Spring 14%, Track, Portland Basis Minneapolis future, $ per bu September ... ... ... November 0.90 +.05 +.20 December 0.90 — +.10 Year ago

Exporter bids and offers
For Oct. 19 shipment Bid Offer No. 1 Hard 12%, Track Gulf Basis Kansas City future, cents per bu October +115 Dec. … November +115 Dec. … December +115 Dec. … January +115 March +121 No. 2 Soft Red, c.i.f. New Orleans Basis Chicago future, cents per bu October +57 Dec. … November +62 Dec. 65 December +62 Dec. 67 January +55 March 60 Year ago bid

6.37 6.39 6.41 0.75 0.75 0.75 1.55 1.60 1.65

+100 Dec. +110 Dec. +110 Dec. +100 March

+65 +75 +77 +47

Dec. Dec. Dec. March

October 23, 2012

FOODBUSINESS NEWS

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Food Business News - October 23, 2012

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