Milling & Baking News - August 1, 2006 - 41

I N G R E D I E N T

W E E K

 Wheat Futures

Wide price declines were sustained in
wheat futures last week. Pressure from
expanding harvests of spring wheat in
the U.S. and of wheat in the European
Union was evident. Commodity funds
liquidated long positions, with supportive export and world production
news not convincing enough to provide an effective offset.
The spring wheat harvest across the
U.S. northern Plains was under way. The
South Dakota harvest was a third completed at last week's outset, and combines took to fields in southern North
Dakota and western Minnesota. The
Wheat Quality Council spring wheat
tour was conducted last week. Tour participants meeting in Fargo projected an
average yield for the region at 31.7 bus
per acre, down from 35.5 bus per acre as
the average yield projected for the same
areas by the tour last year. The forecast
for yields lower than a year ago had little
effect, as they already had been factored
into futures pricing.
Egypt bought 55,000 tonnes of U.S.
soft red winter wheat and 60,000 tonnes
of soft white wheat. India sought offers
on 400,000 tonnes of optional-origin milling wheat. No U.S. wheat was applied to

recent large purchases by that country.
Iraq was expected to seek wheat shortly.
Export sales of U.S. wheat in the week
ended July 20 totaled 464,700 tonnes, up
41% from the previous week and 36%
over the preceding four-week average.
The International Grains Council on
July 27 lowered its projection of 200607 world wheat production by 9 million
tonnes, to 596 million tonnes. That outturn would compare with 617 million
tonnes in 2005-06 and 556 million tonnes
in 2004-05. World wheat endings stocks
for 2006-07 were projected at 118 million
tonnes, down 3 million tonnes from the
previous forecast and compared with
133 million tonnes in 2005-06. MBN

 Millfeed

Nearby millfeed prices remained under pressure in most markets last week,
as increased flour grind allowed supply to
catch up with or surpass demand. Effects
of recent hot weather across the country
continued to limit feed demand.
California received a break from 100plus-degree temperatures, but not before demand for feed for dairy herds
dropped, which helped push millfeed
prices $17 a ton lower in July. Flour grind
in California remained heavy.

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu

Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

Season's
Low

- Change from -
July 21 July 14

Week's
High
Low

Year
ago

High

4.84
5.00
5.03¾
4.97

-22c
-21½c
-20¾c
-17½c

-11½c
-11½c
-9¼c
-6c

5.05½
5.19½
5.24
5.11

4.81
4.94
4.99
4.96

3.39¼
3.51½
3.57¾
3.61½

5.28
5.39
5.42
5.22

(05-23-06)
(07-11-06)
(07-11-06)
(07-11-06)

3.48
3.58
3.30
4.19

(08-31-05)
(09-07-05)
(02-09-05)
(02-06-06)

3.88½
4.08
4.24½
4.32½

-18¾c
-18¼c
-20c
-20c

-9c
-9½c
-10¼c
-10½c

4.06
4.27½
4.42
4.49

3.80
4.03½
4.21
4.30

3.27¾
3.42¼
3.54½
3.61

4.45½
4.62
4.76
4.59½

(05-23-06)
(05-23-06)
(05-23-06)
(04-11-06)

3.34½
3.46
3.07
3.75

(12-09-05)
(12-09-05)
(12-09-05)
(01-18-06)

4.78
4.87
4.95
4.96

-26c
-25¼c
-23c
-18½c

-30c
-26c
-24¼c
-23¾c

5.02½
5.11
5.15½
5.13

4.71
4.78
4.89
4.90

3.49¼
3.58½
3.68
3.74

5.35
5.42
5.36
5.25

(07-12-06)
(07-11-06)
(07-11-06)
(07-11-06)

3.57½
3.66
3.41½
3.82

(11-28-05)
(11-28-05)
(09-07-05)
(11-28-05)

July 28

Other areas saw the strongest flour
grind in months. Increased supplies came
even as feed demand waned because of
the heat and lack of inclusion of millfeed
in some feed rations. Millfeed prices
dropped $4@10 a ton, except in the Pacific Northwest, which held steady. The
Northeast especially was unsettled as
mills had trouble finding buyers while
needing space for weekend production.
Storm-related flour mill downtime in
St. Louis reduced supply in surrounding areas. Feed demand in the droughtstricken Southwest remained good, limiting price declines. In the Pacific Northwest, prices held steady, with supply
and demand in balance even with strong
flour grind. Southeast still saw good demand from catfish feeders.
Wheat germ prices were unchanged
last week. Sales for September-October
occurred at $245 a ton, f.o.b. Midwest.
But spot sales well below the nearby price
range of $150@160 also were reported.
Bulk middlings at $67 a ton in K.C.
and $64 in Minneapolis compared with
corn at $77.50 a ton and sorghum at
$76.50 a ton, K.C. Corn gluten feed was
steady at $66 a ton, distillers' dried grain
held at $70 a ton and dehydrated alfalfa
was steady at $169 a ton. MBN

Chicago wheat futures
September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
67 @ 70
Southwest, f.o.b. truck
72 @ 75
Minneapolis
64 @ 69
Upper Midwest, f.o.b. truck 60 @ 65
Chicago West
77 @ 82
Central states, f.o.b truck 50 @ 55
Buffalo
35 @ 40
Southeast
56 @ 62
N. & S. California
75 @ 80
Los Angeles, f.o.b. truck
71 @ 76
Pacific Northwest
70 @ 75
Upper Midwest, sacked
160
Wheat germ
150 @ 160

Aug.
63 @ 66
68 @ 71
62 @ 67
58 @ 63
75 @ 80
48 @ 53
34 @ 39
50 @ 57
74 @ 80
70 @ 76
70 @ 75

42 / Milling & Baking News, August 1, 2006

- Change from -
July 21
July 14
-1 @ -2
-
+1 @ 0
-
-3 @ -3
-
-3 @ -3
-
-3 @ -3
-
-6 @ -6
-
-8 @ -8
-
-5 @ -3
-
-7 @ -6
-
-7 @ -6
-
-
-

Year
ago
52 @ 55
54 @ 57
48 @ 51
44 @ 47
61 @ 64
32 @ 36
22 @ 27
31 @ 35
81 @ 86
77 @ 82
60 @ 65

Sept.
63 @ 66
68 @ 71
63 @ 68
59 @ 64
76 @ 81
48 @ 53
35 @ 40
50 @ 57
77 @ 82
73 @ 78
70 @ 75

Oct-Dec
70 @ 73
75 @ 78
64 @ 69
60 @ 65
77 @ 82
59 @ 64
43 @ 48
52 @ 59
84 @ 90
80 @ 86
73 @ 78

Jan.-Mar.
72 @ 75
77 @ 80
64 @ 69
60 @ 65
77 @ 82
59 @ 64
44 @ 49
53 @ 60
82 @ 87
78 @ 83
73 @ 78

Minneapolis wheat futures
September contract, $ per bu

bakingbusiness.com/world-grain.com
http://www.bakingbusiness.com/world-grain.com
Milling & Baking News - August 1, 2006

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