Milling & Baking News - March 24, 2009 - 52

Ingredient Week

Cash Wheat

HARD WINTER. Premiums on hard red
winter wheat in Kansas City were unchanged to 12c a bu lower last week. The
widest losses applied to wheat across the
middle range of proteins and on wheat
with protein of 13% and 13.2%. The basis
on low-protein wheat was untested and
unchanged.
The losses added to those sustained
during the previous week when rail car
shipments overwhelmed domestic and
export demand. A few weeks earlier,
when mills sought supply in anticipation
of a seasonal increase in mill grind, the
basis trended higher and reached levels
that encouraged elevators to order rail
cars and increase shipments. The market
could only absorb so much of the wheat
offered and buyers began to lower bids
or even back away. Exporter bids, which
held firm for a number of weeks, began to
back off as well. Some elevators sought to
cancel some of the rail cars ordered when
the market was firmer.
Farmer selling of wheat remained limited, although eyes were turned to rising
wheat futures prices. Dampening selling
enthusiasm was uncertainty over new
crop prospects. Once farmers are more
confident of their own prospects, they
were expected to sell more wheat.
Famers offered some 2009 crop wheat,
but the pace of new crop sales was nothing out of the ordinary for the date and
fell well short of the active pre-harvest
sales of new crop seen last year.
Rain fell across southern portions of
hard winter belt over the previous weekend, with parched western areas of Texas
receiving about a half-inch. Much more
rain was needed in these areas.
Kansas Agricultural Statistics rated
the condition of the Kansas hard winter
wheat crop on March 15 at 42% good to
excellent (45% a week earlier), 41% fair

No. 1 hard winter
Basis Kansas City May, cents per bu
Mar. 20 - Change from -
Premium Mar. 13
Mar. 6
Ordinary 17@ 32
-
-7@ -7
11%
32@ 47
-
-
11.2% 36@ 51
-
-
11.4% 42@ 57
-
-
11.6% 45@ 60 -5@ -5 -12@ -12
11.8% 54@ 69 -9@ -9 -21@ -21
12%
56@ 71 -12@ -12 -20@ -20
12.2% 56@ 71 -12@ -12 -22@ -22
12.4% 56@ 71 -12@ -12 -22@ -22
12.6% 60@ 75 -10@ -10 -20@ -20
12.8% 60@ 75 -10@ -10 -20@ -20
13%
65@ 80 -10@ -10 -15@ -15
13.2% 65@ 80 -10@ -10 -15@ -15
13.4% 70@ 85 -5@ -5 -23@ -23
13.6% 75@ 90 -5@ -5 -30@ -30
13.8% 75@ 90 -5@ -5 -35@ -35
14%
80@ 95 -5@ -5 -35@ -35
bakingbusiness.com / world-grain.com

Year
ago
30 @ 60
60 @ 75
65 @ 80
70 @ 85
75 @ 90
90 @ 105
107 @ 122
115 @ 130
135 @ 150
145 @ 160
165 @ 180
175 @ 190
195 @ 210
215 @ 230
275 @ 290
295 @ 310
350 @ 365

and 17% poor to very poor. Oklahoma
wheat was 12% jointing (24% as the recent five-year average for the date) and
was rated 25% good to excellent (21%
a week earlier), 36% fair and 39% poor
to very poor (43%), according the U.S.
Department of Agriculture field office in
that state. Texas wheat was 2% headed
(2% as the average for the date) and was
rated 12% good to excellent (10% a week
earlier), 31% fair and 57% poor to very
poor (63%). Colorado wheat was rated
51% good to excellent (47% a week earlier), 33% fair and 16% poor to very poor.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis dropped
5@65c a bu last week as wheat shipments overwhelmed mill and exporter
demand.
Spring wheat producers, especially
in South Dakota and Minnesota, sold
wheat in volume recently in response to
rising wheat futures prices and in anticipation of impending road postings that
will curtail truck movement of wheat
until conditions dry. Some roads already
had posted weight limits. The increased
wheat sales resulted in stepped up shipments from elevators, which had the effect of pummeling the spot cash market.
Mills in recent weeks bought significant
supply for shipment in April and May,
which added to the malaise seen in the
spot market.
Weather forecasts called for another
bout of wintry precipitation including
both rain and snow, which will add to

the snow pack that soon will melt and
probably flood low lying areas and fields
along rivers.
SOFT RED. Mill bids on soft red winter wheat registered mixed changes last
week. In Kansas City, No. 1 soft red bids
declined 5c, to 123c under K.C. May to
48c under. Gulf bids on soft red for nearby declined 13c, to 38c under Chicago
May. St. Louis mill bids held at 40c under Chicago May. Chicago mill bids for
nearby were 110c under Chicago May;
new crop, 110c under Sept. Mill bids in
Toledo for March advanced 10c, to 120c
under Chicago May; April, 115c under;
new crop, 130c under July. Elevator bids
were 97c under May; new crop, 115c
under July. Cincinnati mill bids were
unchanged at 50c under Chicago May.
Elevator bids were 63c under May; new
crop, 63c under July. Michigan white
wheat mill bids were 70c under Chicago
May to 45c under; new crop, 60c under
July to 40c under.
Indications were Central states producers exhibited increased interest in
selling new crop soft red winter wheat
with some business completed. Rising
wheat futures prices and good moisture and weather conditions for the crop
combined to encourage the selling.
Wheat rated good to excellent on
March 15 was 68% in Louisiana (30%
fair), 52% in North Carolina (40% fair)
and 60% in Georgia (34% fair). Wheat
was 53% jointing in Georgia compared
with 24% as the average for the date. MBN

No. 1 hard spring

Cash wheat

Milling quality, basis Minneapolis May, cents per bu
Mar. 20
- Change from -
Year
Premium Mar. 13
Mar. 6
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
25@ 30
-15@ -25
-10@ -5
...
13.5%
70@ 85
-5@ -5
-5@ -25
...
14%
110@ 125 -25@ -15
-30@ -35 125@ 200
14.5% 130@ 135 -35@ -65 +130@ +135
...
15%
190@ 225 -40@ -35 +190@ +225 200@ 300
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
Mar. 20
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
March
...
...
April
+77 May
...
May
+77 May
...
June
+70 July
75
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
March
-38 May
-30
April
-35 May
-27
May
-25 May
-15
June
-25 July
-18

Year ago
bid

...
...
...
+70 July

+30 May
...
...
-90 July

Mar. 20 - Change from -
For shipment
Bid Mar. 13 Mar. 6
No. 1 Soft White, Track, Portland
$ per bu
Nearby
5.65
+.10
+.10
March
5.65
+.10
+.10
April
5.65
+.10
+.10
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
Nearby
0.50
+.05
+.10
March
0.50
+.05
+.10
April
0.50
-.05
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
Nearby
1.60
-.15
-.15
March
1.60
-.15
-.15
April
1.60
-.15
-.15

Year
ago
9.90
9.90
9.90
1.25
1.25
1.30

3.00
3.00
3.00

Canadian domestic milling wheat
Change from Year
In-store, Thunder Bay,
Mar. 20
Mar. 13
ago
Canadian $ per tonne
Western red spring 13.5% 343.53
-2.77
544.1
Soft white spring
275.01
-3.72
482.97
Amber durum
386.37 -23.52
905.57
U.S. $ per bu
Western red spring 13.5%
7.56
0.17
14.42
Soft white spring
6.05
0.10
12.80
Amber durum
8.50
-0.25
24.00
Milling & Baking News

March 24, 2009 / 53

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Milling & Baking News - March 24, 2009

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