Milling & Baking News - July 29, 2008 - 37

Ingredient Week

 Wheat Futures

Prices of wheat futures posted mixed
changes last week. Prices declined through
Thursday but rallied on Friday on rumors
Iran bought wheat and ideas the wheat
market was oversold. The expansion of
winter wheat harvest, a pause in the recent
decline of other-spring wheat condition as
well as slumping corn, soybean and crude
oil prices exerted pressure.
The U.S. Department of Agriculture
estimated the winter wheat harvest was
71% completed on July 20 compared
with 62% a week earlier and 79% as the
recent five-year average for the date. The
harvest was finished in Kansas, Texas
and Oklahoma and was more than 90%
completed in Missouri, Illinois, Indiana
and Ohio after a slow start in each state.
Yields across most of the hard red winter
and soft red winter wheat areas exceeded
expectations, and crop observers expect
the U.S.D.A. will raise its winter wheat
estimate in the Aug. 12 crop report.
Dryness in western North Dakota and
Montana concerned spring wheat buyers, but the recent decline in crop condition ratings was arrested during the
week ended July 20 when the U.S.D.A.
rated the spring wheat crop in the six
key states at 63% good to excellent, up
from 61% a week earlier.

Crude oil prices continued to retreat
from all-time highs that approached
$150 a barrel. Corn futures and soy complex futures extended their slump with
weather benign across the Corn Belt.
Net export sales of U.S. wheat during
the week ended July 17 totaled 610,400
tonnes, down 19% from the previous
week and down 4% from the recent fourweek average. At 419.4 million bus, sales
and undelivered sales of U.S. export
wheat for the current year were 8% ahead
of year-ago transactions of 388.3 million
bus. While the pace of export sales has
held up well to date this season, U.S. supply was expected to face increased competition from Europe in coming weeks.
In fact, additional Middle Eastern wheat
tenders were awarded to Black Sea and
other European suppliers last week.
The European harvest was progressing well with crop yields expected to be
much improved from a year ago. MBN

 Millfeed

Ongoing declines in corn prices clouded
millfeed trading last week, but continued
tight supplies supported nearby prices,
as was the case for the past few weeks.
By the week's end, uncertainty reigned
with spot prices nominal in most areas
and unquoted in some others, while price

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu
July 25
Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

changes from a week earlier were mixed.
The situation in the Southwest appeared
to be the most confusing with spot quotes
unavailable because of a lack of supply.
Some astronomical offers were made
when material did surface. Even as flour
grind held strong or increased in some regions, millfeed was quickly absorbed into
the market with little impact on nearby
prices. Demand held surprisingly strong
as feed mixers had few if any alternatives of better value. August and September prices were higher in the Southwest,
Southeast and Central states, declined in
the Upper Midwest and West coast and
held steady in the Northeast. OctoberDecember pricing was steady to lower
pressured by declining corn prices.
Trading was thin due to tight supplies
or unease with forward prices, which
were flat from August through March in
many areas with deferred at a discount
at some locations. Spot values, where
quoted, were at sizable premiums to August in some regions.
Wheat germ prices were firm.
Bulk middlings were $155 a ton K.C.
and $164 Minneapolis compared with
corn at $196 a ton and sorghum at $170,
both at K.C. Corn gluten feed was $140 a
ton, distillers' dried grain was $172 and
dehydrated alfalfa was $243. MBN

- Change from -
July 18 July 11

Week's
High
Low

Year
ago

High

Season's
Low

8.32¼
8.58
8.80
8.90½

-5½c
-¾c
+3c
+½c

-32¼c
-28c
-27c
-23½c

8.45½
8.69
8.89
8.90½

8.07
8.31½
8.54
8.70

6.44
6.58¾
6.65
6.26

12.95
12.99
12.75
12.55

(03-10-08)
(03-10-08)
(03-13-08)
(03-13-08)

4.73
4.85
4.78
6.35

(04-02-07)
(04-02-07)
(04-30-07)
(10-19-07)

8.11
8.34½
8.55
8.68¼

+7c
+6c
+3½c
+1¼c

-19¾c
-20½c
-23c
-24¼c

8.21
8.45½
8.62½
8.68¼

7.75½
7.99
8.22
8.36

6.53¼
6.69
6.62¾
6.45

12.78
12.84¼
12.75
11.90

(03-10-08)
(03-10-08)
(03-13-08)
(03-13-08)

5.00
4.30
6.76
7.82

(05-21-07)
(04-24-06)
(10-24-07)
(01-10-08)

8.86
8.96¼
9.17
9.20

-2c
+1¼c
+14c
+12c

-10½c
-13½c
-6c
-11c

8.90
9.03
9.17
9.20

8.53½
8.68
8.87
9.00

6.45½
6.57¼
6.70
6.63

13.20
13.15
13.00
12.50

(02-26-08)
(02-25-08)
(02-26-08)
(02-26-08)

4.40
4.80
5.19
5.85

(11-01-06)
(01-08-07)
(04-18-07)
(07-11-07)

Chicago wheat futures
September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
155 @ 165
Southwest, f.o.b. truck
170 @ 175
Minneapolis
164 @ 174
Upper Midwest, f.o.b. truck 160 @ 170
Chicago West
177 @ 187
Central states, f.o.b truck 160 @ 170
Buffalo
135 @ 150
Southeast
145 @ 155
N. & S. California
199 @ 209
Los Angeles, f.o.b. truck 195 @ 205
Pacific Northwest
178 @ 185
Upper Midwest, sacked
245
Wheat germ
190 @ 205
38 / July 29, 2008

Milling & Baking News

Aug.
148@ 153
163@ 168
150@ 160
146@ 156
163@ 173
150@ 160
130@ 140
140@ 145
199@ 209
195@ 205
178@ 185

- Change from -
July 18
July 11
-4@ -6
+2 @ +2
-2@ -2
+3 @ +3
-14@ -9
-6 @ -6
-14@ -9
-6 @ -6
-14@ -9
-6 @ -6
-5@ -3 +10 @ +10
-15@ -15 +5 @ 0
0@ -5
-5 @ -10
-5@ -5 -10 @ -10
-5@ -5 -10 @ -10
-2@ -5
-2 @ -5

Year
ago
40 @ 45
53 @ 58
64 @ 69
60 @ 65
77 @ 82
62 @ 68
55 @ 63
46 @ 51
104 @ 119
100 @ 115
97 @ 107

Sept.
147 @ 152
157 @ 162
148 @ 156
144 @ 152
161 @ 169
145 @ 155
130 @ 140
138 @ 143
194 @ 204
190 @ 200
178 @ 185

Oct.-Dec.
147 @ 152
157 @ 162
148 @ 156
144 @ 152
161 @ 169
148 @ 158
130 @ 140
140 @ 145
199 @ 209
195 @ 205
178 @ 185

Jan.-Mar.
148 @ 153
158 @ 163
147 @ 155
143 @ 151
160 @ 168
148 @ 158
130 @ 140
140 @ 145
199 @ 209
195 @ 205
178 @ 185

Minneapolis wheat futures
September contract, $ per bu

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Milling & Baking News - July 29, 2008

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