Milling & Baking News - October 23, 2007 - 53

Ingredient Week

 Wheat Futures

Prices of wheat futures finished with
mixed changes last week amid volatile
trading. Lacking an "October surprise"
in the U.S. Department of Agriculture's
revisions to its 2007-08 wheat supply/demand projections issued the
previous Friday, prices extended their
slump early last week. Prices stabilized after midweek and moved higher
in later trading with the confirmation
of still strong foreign demand for the
tight U.S. supply.
Seasonally, wheat futures typically
trend lower this time of year. But the current marketing year has been anything
but typical. U.S. wheat ending stocks for
2007-08 were forecast to be the lowest in
58 years, and world wheat ending stocks
were forecast to be the smallest since the
late 1970s, when the world had far fewer
mouths to feed.
When prices were at their all-time
highs just a few weeks back, other
exporters began to produce supplies
for sale. Russia began to sell wheat to
Egypt. But last week's Egyptian tender was a reminder that other origins
weren't yet prepared to supplant the
U.S. as the principal source of wheat
to world markets. While Egypt bought
80,000 tonnes of milling wheat from

Russia, it turned to the U.S. to supply
70,000 tonnes of soft red winter wheat.
Morocco issued licenses for the import
of 500,000 tonnes of soft milling wheat
last week. It was uncertain whether or
how much U.S. wheat would apply.
Export sales of U.S wheat during
the week ended Oct. 11 totaled 984,500
tonnes, up 5% from the previous week
but down 28% from the recent four-week
average. At 964 million bus, the aggregate of export sales for the current year
was 123% ahead of year-ago transactions
of 433 million bus.
The market pondered how much
weight to give indications of heavy
planting of winter wheat across the U.S.
and Europe. Winter wheat planting in
the U.S. on Oct. 14 was 73% completed
compared with 76% as the recent fiveyear average for the date, according to
the U.S.D.A. MBN

 Millfeed

Most major markets peaked last week
and ended down slightly. There were
some important exceptions. Some of the
widest losses were in the Central states
and Northeast, where some numbers
were off $10 a ton. In contrast, the Upper Midwest truck market saw sizable
gains even as other markets moved low-

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu
Season's
Low

- Change from -
Oct. 12 Oct. 5

Week's
High
Low

Year
ago

High

8.69
8.76¼
8.40
6.96¼

+1¼c
+1¼c
+13c
+10¾c

-25½c
-19½c
+7c
+3¾c

8.72
8.76¼
8.40
6.97

8.25
8.32½
8.00
6.67

5.31
5.43¼
5.25
4.84½

9.50½
9.50
8.85
7.02

(10-01-07)
(10-01-07)
(10-01-07)
(09-28-07)

4.14
4.70½
4.99
4.39

(02-06-06)
(08-21-06)
(03-08-07)
(04-24-06)

8.55½
8.74½
8.31
6.92¾

-2c
+1½c
+16c
+12¼c

-34½c
-27½c
-1½c
+6¼c

8.63
8.78
8.34
6.94½

8.10
8.33
7.89
6.60

5.05
5.24½
5.01½
4.66

9.61¾
9.66½
8.75
6.95

(09-28-07)
(09-28-07)
(10-01-07)
(10-01-07)

3.86
4.58
4.76
3.72

(01-17-06)
(10-12-06)
(04-03-07)
(01-16-06)

8.69¾
8.69
8.48
7.73

-¼c
-1c
+11½c
+27c

-21c
-21c
-17c
+3c

8.74
8.71
8.50
7.75

8.27
8.28
8.08
7.35

5.09¾
5.25
5.28
5.17

9.31
9.30½
8.93
8.13

(10-01-07)
(10-01-07)
(10-01-07)
(10-01-07)

4.30
4.35
4.70
4.67

(04-07-06)
(04-07-06)
(06-30-06)
(10-30-06)

Oct. 19
Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

er. California exhibited limited strength.
Nearby Pacific Northwest moved higher.
Deferred numbers were irregular.
A number of factors affected various
markets. Declines in corn and other
feedstuff prices, especially at midweek,
prompted mixers and jobbers to lower
millfeed pricing ideas. However, supplies in a number of regions gradually
tightened not only for the nearby but
also for shipment through yearend. Mixers entered the fourth quarter, often a
period of peak demand, with much less
than normal backlogs, which led to some
active short covering.
Feed manufacturers have threatened to
substitute other ingredients for millfeed.
While availability of substitutes proved
illusory at many points, some users, particularly in the East, made changes leading to pressure on millfeed prices.
Wheat germ advanced $25 a ton, for a
gain of $40 in the past two weeks. Supplies remained extremely scarce in most
regions.
Bulk middlings at $107 a ton in K.C.
and $117 in Minneapolis compared
with corn at $126 a ton and sorghum at
$116 a ton, K.C. Corn gluten feed was
$115@125 a ton. Distillers' dried grain
was $115 a ton. Dehydrated alfalfa was
$208 a ton. MBN

Chicago wheat futures
December contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
107 @ 110
Southwest, f.o.b. truck
117 @ 120
Minneapolis
117 @ 127
Upper Midwest, f.o.b. truck 113 @ 123
Chicago West
130 @ 140
Central states, f.o.b truck 104 @ 107
Buffalo
95 @ 100
Southeast
94 @ 100
N. & S. California
126 @ 139
Los Angeles, f.o.b. truck 122 @ 135
Pacific Northwest
145 @ 160
Upper Midwest, sacked
190
Wheat germ
300 @ 310
54 / October 23, 2007

Oct.
107@ 110
117@ 120
117@ 127
113@ 123
130@ 140
104@ 107
95 @ 100
94 @ 100
126@ 139
122@ 135
145@ 160

Milling & Baking News

- Change from -
Oct. 12
Oct. 5
-5 @ -6 +4 @ +4
0 @ -1 +6 @ +5
+11 @ +12 +25 @ +30
+11 @ +12 +25 @ +30
+11 @ +12 +25 @ +30
-4 @ -7
-6 @ -6
-10 @ -10 -10 @ -15
-6 @ -7
-6 @ -6
+2 @ 0
+2 @ 0
+2 @ 0
+2 @ +5
+5 @ +5 +5 @ +5

Year
ago
Nov.
75 @ 78 110 @ 114
87 @ 90 120 @ 124
72 @ 77 115 @ 120
68 @ 73 111 @ 116
85 @ 90 128 @ 133
62 @ 67 106 @ 108
65 @ 70 95 @ 105
50 @ 55 96 @ 102
92 @ 102128@ 141
88 @ 98 124 @ 137
97 @ 105145@ 160

Dec.
118 @ 121
125 @ 128
117 @ 127
113 @ 123
130 @ 140
114 @ 118
105 @ 115
104 @ 109
128 @ 141
124 @ 137
145 @ 160

Jan.-Mar.
113 @ 116
118 @ 121
103 @ 113
99 @ 109
116 @ 126
104 @ 108
95 @ 105
96 @ 101
124 @ 139
120 @ 135
145 @ 160

Minneapolis wheat futures
December contract, $ per bu

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Milling & Baking News - October 23, 2007

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