Milling & Baking News - December 30, 2008 - 33

Ingredient Week

Cash Wheat

HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 2c a bu lower last week.
Relative stability in the basis reflected a
balance between supply and demand.
Wheat offers from day to day were limited, but with holiday-related downtime
scheduled for the last two weeks of the
year, mill demand for spot supply was
not pressing. There were talks concerning additional January-March wheat
purchases, but millers and country owners of wheat were a few cents too many
apart from concluding the business. Foreign demand for hard red winter wheat
continued to languish with U.S. wheat
prices much higher than those offered
by competing exporters.
While mills curtailed grind to allow
for holiday observances, country elevators also had downtime. Most elevators
closed early on Dec. 24 and didn't reopen
for business until Friday. Similar operating schedules were expected this week.
Farmer selling picked up at several locations. The recent rally in wheat futures
prices helped encourage many producers who were ambivalent about taking
additional income in the current tax year
to liquidate additional wheat and other
grains and oilseeds. The expansion in
sales was not so great it assumed the
dimensions of a "second harvest," but
sales were more active than expected.
Most producer sales involved liquidation of farmers' stocks already held in
storage at country elevators or terminals,
so little movement from farm to elevator
was required.
The week began cold and ended with
record-high temperatures across portions
of the region. Snow cover vanished, but
temperatures were forecast to be moderate into the next week. Crop damage
from recent cold snaps won't be evident

No. 1 hard winter
Basis Kansas City March, cents per bu
Dec. 26 - Change from -
Premium Dec. 19 Dec. 12
Ordinary 20 @ 35
-
-
11%
25 @ 40
-
-
11.2%
30 @ 45
-
-
11.4%
40 @ 55
-
-
11.6%
40 @ 55
-
-5 @ -5
11.8%
50 @ 65
-
-9 @ -9
12%
53 @ 68 -2 @ -2 -12 @ -12
12.2%
53 @ 68 -2 @ -2 -12 @ -12
12.4%
55 @ 70
-
-13 @ -13
12.6%
57 @ 72
-
-11 @ -11
12.8%
65 @ 80
-
-3 @ -3
13%
70 @ 85 -2 @ -2 -7 @ -7
13.2%
70 @ 85 -2 @ -2 -7 @ -7
13.4%
73 @ 88 -2 @ -2 -7 @ -7
13.6%
73 @ 88 -2 @ -2 -12 @ -12
13.8%
73 @ 88 -2 @ -2 -17 @ -17
14%
100 @ 115 -
-25 @ -25
bakingbusiness.com / world-grain.com

Year
ago
-9 @ 6
10 @ 25
20 @ 35
32 @ 47
37 @ 52
43 @ 58
47 @ 62
47 @ 62
51 @ 66
59 @ 74
67 @ 82
76 @ 91
79 @ 94
82 @ 97
85 @ 100
93 @ 108
96 @ 111

until the spring, but veteran crop observers pointed to good wheat plant growth
and condition ahead of dormancy in the
key state of Kansas. Winterkill may be
more of an issue for states to the north
such as Montana, where late crop seeding and dry conditions restricted root
development before the onset of winter.
There were few complaints about rail
service. Rail cars generally were available
for those who needed them, and with
the return of milder weather, locomotive
availability improved. Freight rates were
sharply down from recent months partly
because of the reduction of fuel surcharges. There were concerns about a hike in
demurrage rates - to $175 per day per
car from $75 - coming in January.
HARD SPRING. Premiums on hard
red spring wheat in Minneapolis were
unchanged to 15c a bu lower last week.
Wheat offers were limited from day to
day, but with mills curtailing grind to
provide time for holiday observances,
there was no urgency evident in the
marketplace. Merchandisers commented
most mills were comfortable with coverage extending through January and
faced no pressing needs. Export demand
for hard red spring wheat was soft with
U.S. prices too high to capture a share in
international wheat tenders.
Farmer selling picked up moderately
before the Christmas break. Advancing
wheat futures prices convinced several
producers to take additional income in
the current tax year. Others were said to

be waiting until Jan. 1 to consider additional wheat liquidation.
Most country elevators closed at noon
on Dec. 24 and reopened for business on
the morning of Dec. 26.
Temperatures began the week frigid
but moderated somewhat toward the
week's end. Unlike the hard winter wheat
belt, cold temperatures were expected to
linger across the northern Plains.
Rail transport largely remained problem free with the exception of reduced
power availability during the worst of
the recent cold.
SOFT RED. Mill bids on soft red winter
wheat were mostly unchanged. In Kansas City, No. 1 soft red bids were unchanged at 142c under K.C. March to 42c
under. Gulf bids on soft red for nearby
declined 5c, to 55c under Chicago March.
St. Louis mill bids were 50c under Chicago March. Chicago mill bids for nearby declined 5c, to 115c under Chicago
March. Mill bids in Toledo were 150c
under Chicago March; January-March,
140c under March; new crop, 140c under July. Elevator bids were 125c under
March. Cincinnati mill bids were 100c
under Chicago March. Elevator bids also
were 100c under March. Michigan white
wheat mill bids were 90c under Chicago
March to 75c under.
There was a minor expansion in farmer selling indicated across the soft red
winter wheat states.
Snow, freezing rain and rain washed
across the Central states. MBN

No. 1 hard spring

Cash wheat

Milling quality, basis Minneapolis March, cents per bu
Dec. 26
- Change from -
Year
Premium Dec. 19
Dec. 12
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
40 @ 70
13.5%
75 @ 100 -5 @ -15
-5 @ +20
...
14%
125 @ 140 -15 @ -5
-25 @ -35
80
14.5%
170
-
-20
...
15%
250 @ 300
-
-50 @ -40
95
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
Dec. 26
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
December
...
...
January
... March
70
February
...
...
March
+72 March
80
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
December
-55 Dec.
-52
January
-52 March -50
February
-40 March -35
March
-32 March -25

Year ago
bid

...
...
...
...

Dec. 26 - Change from - Year
For shipment
Bid Dec. 19 Dec. 12
ago
No. 1 Soft White, Track, Portland
$ per bu
Nearby
...
...
...
...
December
...
...
...
...
January
5.50
+.30
+.35
13.05
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
Nearby
...
...
...
...
December
...
...
...
...
January
0.40
-
-.10
1.10
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
Nearby
2.00
-
+.15
1.30
December
2.00
-
+.15
...
January
2.00
-
+.15
1.35

Canadian domestic milling wheat
Change from Year
In-store, Thunder Bay,
Dec. 26
Dec. 19
ago
Canadian $ per tonne
Western red spring 13.5% 343.83
-3.58
406.28
Soft white spring
262.86
-.99
487.17
Amber durum
434.38
-5.37
755.03
U.S. $ per bu
Western red spring 13.5%
7.72
0.02
11.30
Soft white spring
5.90
0.05
13.55
Amber durum
9.75
-
21.00
Milling & Baking News

December 30, 2008 / 33

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - December 30, 2008

Table of Contents for the Digital Edition of Milling & Baking News - December 30, 2008