Food Business News - May 21, 2013 - 56

Ingredient Markets
Market commentary for one-week period ended May 17, 2013

Wheat Futures
Prices of wheat futures declined last
week. Prices began the week higher but
began to slip at midweek.
While winter wheat progress continued
to lag the average pace by as much as three
weeks in some states, the market could
not help but to anticipate the harvest and
the pressure increased supply may have
on prices in coming weeks. At the same
time, hard winter wheat condition ratings
remained abysmal. Kansas Agricultural
Statistics indicated more than half the
state’s crop exhibited at least some
evidence of freeze damage.
The U.S. Department of Agriculture rated
the nation’s winter wheat crop condition
as of May 12 at 32% good to excellent,
29% fair and 39% poor to very poor, nearly
unchanged from the previous week and
even the last few weeks. The poor condition
of the hard winter wheat crop continued to
pull down the average winter wheat rating
as the soft red winter wheat crop was in
mostly good to excellent condition.
The U.S.D.A. indicated 29% of the
winter wheat crop was heading by May 12
compared with 51% as the recent five-year
average for the date.
The pace of spring wheat planting at long
last began to quicken. Planting in the six
key states was 43% completed by May 12

compared with 63% as the average progress
for the date.
Export demand for U.S. wheat reported
for week ended May 9 was above trade
expectations. The U.S.D.A. indicated net
export sales of 125,000 tonnes of wheat for
delivery in 2012-13 and net sales of 415,600
tonnes for delivery in 2013-14.
Expectations
that
world
wheat
production in 2013-14 will set a new record
and exceed 700 million tonnes exerted
pressure on U.S. and world wheat prices.
Improved weather forecasts for Russia
were noted as a factor pressuring wheat
prices at midweek.
Corn futures prices also advanced early
last week but declined in subsequent
trading. In contrast, soybean futures prices
finished the week strongly, partly reflecting
the accelerating progress seen in corn
planting.
Of note and pressuring commodity prices
generally was the impressive advance in
value of dollar. The dollar index reached its
highest level since July 2012. FBN

Millfeed
Spot prices were narrowly mixed while
deferred values were mostly steady to firmer
in a quiet week. Values were flat across all
delivery periods in several regions, which
discouraged significant forward contracting.

Some market participants contended
prices had found a temporary bottom as
millfeed returned to formulations after
recent price declines. In the Southeast,
some seasonal demand late in the week
from catfish growers helped business,
although prices firmed only slightly. Others
saw demand as steady at best as livestock
moved to spring pastures, and some
remained bearish on expectations that
corn futures prices may decline as planting
made considerable progress.
After a week of generally favorable flour
grind, millfeed supplies were expected to
tighten as some flour mills took downtime
for maintenance and fumigations. One large
Kansas City mill was scheduled to close for
a week beginning May 21, which will pull
material in from surrounding locations to
offset the loss of production. In addition,
most mills will take extra downtime during
the upcoming Memorial Day weekend, with
at least one Northeast mill planning to be
down four days.
Millfeed was $135 a ton in Kansas City
and $169 in Minneapolis, on a rail basis,
compared with corn at $258 a ton and
sorghum at $233 ton, both K.C. Corn
gluten feed was unchanged at $200 a ton,
as was distillers’ dried grain at $230 a ton.
Dehydrated alfalfa was also steady at $355
a ton, all K.C. Wheat germ held steady. FBN

Kansas City wheat futures

Wheat futures

July contract, $ per bu
$10.00

$ per bu; change in cents per bu

Kansas City
July
September
December
March
Chicago
July
September
December
March
Minneapolis
July
September
December
March

Season’s
Low

— Change from —
Week’s
May 10 May 3 High
Low

Year
ago

High

7.37¼
7.44¼
7.61¼
7.74¾

-21½c
-22¾c
-23¼c
-23c

-40¾c
-44½c
-44½c
-43¼c

7.73½
7.81¾
7.99
8.11½

7.35¾
7.43¼
7.60¾
7.74¼

7.05
7.17½
7.38¾
7.50¾

9.50
9.46¾
9.92¼
9.86½

(05-26-11)
(11-29-12)
(05-26-11)
(05-25-11)

6.80¼
6.87¾
6.50
6.64½

(05-14-12)
(12-14-11)
(05-11-12)
(05-14-12)

6.83¼
6.91
7.07½
7.24¼

-21c
-21½c
-22½c
-22¾c

-37¾c
-39½c
-37¾c
-34¼c

7.18¾
7.25¾
7.42¾
7.59¼

6.80¼
6.88½
7.05
7.22

6.95¼
7.03
7.20
7.33

9.47
9.05¾
9.77¼
9.82

(05-26-11)
(11-08-12)
(05-26-11)
(05-26-11)

6.63
6.73¾
6.29½
6.52

(11-25-11)
(04-01-13)
(05-14-12)
(05-14-12)

8.03¾
7.95
8.00½
8.11¾

-5c
-9¾c
-11¾c
-11½c

-15¼c
-24¼c
-28c
-28½c

8.21
8.16¾
8.23¼
8.28¼

8.02
7.93½
7.99¾
8.11¼

7.92
7.88½
7.90
7.92¾

10.00
9.70
10.34
10.34½

(07-20-12)
(09-14-12)
(07-23-12)
(07-23-12)

7.60
7.48
7.34
7.43

(06-05-12)
(06-01-12)
(05-14-12)
(05-14-12)

May 17

$8.50
$7.00
$5.50
M

A

N

F

Previous Year

Current Year

Chicago wheat futures
July contract, $ per bu
$10.20
$8.60
$7.00

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
135 @ 145
Southwest, f.o.b. truck
170 @ 180
Minneapolis
169 @ 179
Upper Midwest, f.o.b. truck 165 @ 175
Chicago West
182 @ 192
Central states, f.o.b truck 160 @ 170
Buffalo
140 @ 150
Southeast
135 @ 145
N. & S. California
207 @ 222
Los Angeles, f.o.b. truck 203 @ 218
Paciﬁc Northwest
195 @ 210
Upper Midwest, sacked
350
Wheat germ
290 @ 320

56

FOODBUSINESS NEWS

®

May
135@ 145
165@ 175
174@ 184
170@ 180
187@ 197
160@ 170
130@ 140
135@ 145
207@ 222
203@ 218
190@ 205

— Change from —
May 10
May 3
+7 @ +7
0@ +3
+5 @ +5
—
+15 @ +15 +10@ +10
+15 @ +15 +10@ +10
+15 @ +15 +10@ +10
+15 @ +15 +10@ +10
+5 @ 0
-15@ -20
—
+5@ +5
+1 @ +1
+3@ +3
+1 @ +1
+3@ +3
-5 @ -5
-15@ -20

Year
ago
142@ 150
182@ 190
162@ 169
158@ 165
175@ 182
165@ 175
170@ 178
140@ 150
181@ 211
177@ 207
180@ 185

$5.40

June
132 @ 142
157 @ 167
174 @ 184
170 @ 180
187 @ 197
155 @ 165
120 @ 130
135 @ 145
202 @ 217
198 @ 213
185 @ 200

July-Sept.
130 @ 140
155 @ 165
174 @ 184
170 @ 180
187 @ 197
150 @ 160
110 @ 120
135 @ 145
179 @ 194
175 @ 190
180 @ 195

M

A

N
Previous Year

W k' h
Minneapolis ( t
wheat

F
Current Year

b )
futures

July contract, $ per bu
$10.75
$9.75
$8.75
$7.75
$6.75
M

A

N
Previous Year

F
Current Year

May 21, 2013
Food Business News - May 21, 2013

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