Milling & Baking News - August 12, 2008 - 33

Ingredient Week

 Cash Wheat

HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
7c a bu higher to 1c lower last week. The
week's sole decline applied to wheat
with 11.4% protein. Gains of 1@7c a bu
were registered across the middle range
of proteins. The firmer tone to the basis
reflected an ebbing in the initial wave
of new crop sales in the principal producing states and mills seeking to keep
pipelines filled.
Farmers and secondary handlers eyed
wide carrying charges in wheat futures,
which encouraged storing instead of liquidating additional wheat, at least for
awhile. With grain supplies in the country near the bottom of bins before the
wheat harvest, there seemed to be adequate storage capacity to accommodate
the large wheat crop. At the same time,
the approach of the fall harvest could
encourage some wheat sales. The corn
harvest in Kansas was expected get into
full swing in September.
The U.S. Department of Agriculture
indicated the hard winter wheat harvest
was 98% completed in Nebraska on Aug.
3, (99% as the recent five-year average
for the date) 67% in South Dakota (96%)
and 16% in Montana (62%). Harvesting
in the northern areas proceeded in fits
and starts last week amid a fairly active
weather pattern.
Several rail cars recently were placed in
harvest areas so elevators were loading out
new crop South Dakota wheat in greater
volume. The area was starved for cars during the preceding couple of weeks.
Indications were hard winter wheat
harvested in eastern South Dakota was
averaging 12% to 12.5% in protein, while
western South Dakota wheat was averaging 10.5% to 11.5%. One merchandiser
projected a state average protein just shy
of 12%. There were no reports of signifi-

No. 1 hard winter
Basis Kansas City Sept., cents per bu
Aug. 8 - Change from -
Premium Aug. 1
July 25
Ordinary -17 @ 18
-
-
11%
11 @ 26
-
-3 @ -3
11.2%
14 @ 29
-
-
11.4%
18 @ 33 -1 @ -1 -7 @ -7
11.6%
23 @ 38 +1 @ +1 -2 @ -2
11.8%
25 @ 40 +1 @ +1 -2 @ -2
12%
32 @ 47 +7 @ +7 +5 @ +5
12.2%
32 @ 47 +6 @ +6 +5 @ +5
12.4%
32 @ 47 +3 @ +3 +5 @ +5
12.6%
32 @ 47 +3 @ +3 +4 @ +4
12.8%
34 @ 49 +5 @ +5 +2 @ +2
13%
36 @ 51 +1 @ +1 +1 @ +1
13.2%
39 @ 54 +4 @ +4 +4 @ +4
13.4%
40 @ 55 +1 @ +1 +5 @ +5
13.6%
41 @ 56
-
+6 @ +6
13.8%
43 @ 58
-
+8 @ +8
14%
53 @ 68
-
-
bakingbusiness.com / world-grain.com

Year
ago
-5 @ 20
-3 @ 22
-1 @ 24
1 @ 26
3 @ 28
4 @ 29
5 @ 30
7 @ 32
9 @ 34
9 @ 34
10 @ 35
11 @ 36
13 @ 38
23 @ 48
26 @ 51
29 @ 54
32 @ 57

cant pockets of high-protein wheat.
The corn harvest expanded in Texas
with 25% of the crop combined by Aug.
3. Initial fieldwork in preparation for fall
planting of winter wheat was well under
way in both Texas and Oklahoma.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis buckled at
last week's outset registering wide losses. The basis edged higher as the week
progressed and ended the week 20c a bu
higher to 40c lower.
The slow but steady expansion in the
spring wheat harvest exerted pressure.
Mills were careful not to buy more old
crop spring wheat than was necessary to
sustain their operations until new crop
wheat begins to flow into marketing
channels in greater volume. The firming
noted as the week progressed reflected
concerns that while spring wheat yields
might be high, average protein could fall
below expectations.
Much of the wheat offered for sale in
Minneapolis last week was South Dakota winter wheat.
Export elevators at Duluth-Superior
didn't press for supply and were absent
from the rail market.
The spring wheat harvest was slowly
picking up momentum, although combines still faced occasional rain delays.
Harvesting in the six key states on Aug.
3 was 6% completed compared with 1% a
week earlier, 23% around the same date a
year ago and 19% as the recent five-year
average for the date. Combining was 5%

completed in North Dakota (14% as the
average for the date), 9% in South Dakota (56%), 2% in Minnesota (16%), 8%
in Montana (13%), 2% in Idaho (6%) and
10% in Washington (26%).
Spring wheat condition in the six key
states was 56% good to excellent (60% a
week earlier), 29% fair and 15% poor to
very poor. Wheat rated good to excellent
was 50% in North Dakota, 72% in South
Dakota, 84% in Minnesota, 43% in Montana (38% fair), 73% in Idaho and 22% in
Washington (44% fair).
SOFT RED. Mill bids on soft red winter
wheat saw minor adjustments last week.
Supply was plentiful with the soft red
crop the largest in years. Overall quality was good. The row crop harvest was
weeks away, but once the combines take
to fields again, wheat movement was
expected to be reduced to a trickle until
corn and soybeans are in the bin.
In Kansas City, No. 1 soft red bids
were at 190c under K.C. Sept. to 85c under. Gulf bids on soft red for nearby advanced 15c, to 115c under Chicago Sept.
St. Louis mill bids held at 150c under
Chicago Sept. Chicago mill bids for
nearby were 75c under Chicago Sept.
Mill bids in Toledo were 185c under
Chicago Sept.; October, 175c under Dec.
Elevator bids were 186c under Sept.
Cincinnati mill bids were 200c under
Chicago Sept. Elevator bids were 190c
under Sept. Michigan white wheat mill
bids were 100c under Chicago Sept. to
75c under. MBN

No. 1 hard spring

Cash wheat

Milling quality, basis Minneapolis Sept., cents per bu
Aug. 8
- Change from -
Year
Premium
Aug. 1
July 25
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
50 @ 75 -40 @ -35 -85 @ -60
17
13.5%
...
...
...
...
14%
90 @ 120 -10 @ -30 -50 @ -35 17 @ 30
14.5%
...
...
...
...
15%
150
+20 @ -5
-15 @ -25 20 @ 32
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
Aug. 8
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
August
+62 Dec.
...
September
+65 Dec.
73
October
+75 Dec.
...
November
+75 Dec.
...
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
August
-115 Sep.
-105
September
-100 Sep.
-90
October
-120 Dec.
-90
November
-110 Dec.
-85

Year ago
bid

...
+60 Sep.
+60 Dec.
+60 Dec.

-5
+15
+25
+25

Sep.
Sep.
Dec.
Dec.

Aug. 8 - Change from -
For shipment
Bid Aug. 1 July 25
No. 1 Soft White, Track, Portland
$ per bu
Nearby
8.00
-.25
+.15
August
8.00
-.25
+.15
September
8.05
-.25
+.10
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
Nearby
0.70
-.05
-.05
August
0.70
-.05
+.05
September
0.75
+.10
+.05
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
Nearby
0.70
-
-
August
0.70
-
-
September
0.80
+.10
+.10

Year
ago
...
...
6.76
0.50
0.50
0.60

0.55
0.55
0.57

Canadian domestic milling wheat
In-store, Thunder Bay,
Canadian $ per tonne
Western red spring 13.5%
Soft white spring
Amber durum
U.S. $ per bu
Western red spring 13.5%
Soft white spring
Amber durum

Aug. 8
379.79
333.50
637.57
9.68
8.50
16.25

Milling & Baking News

Change from Year
Aug. 1
ago
+1.55
274.48
+15.16
272.93
+15.96
348.42
-0.36
0.05
-0.25

7.09
7.05
9.00

August 12, 2008 / 33
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Milling & Baking News - August 12, 2008

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