Milling & Baking News - June 30, 2009 - 34

Ingredient Week

 Wheat Futures

Prices of wheat futures last week continued to slide from early-June highs.
From the beginning of the month through
last Thursday, the September contracts
dropped 95c a bu in Kansas City, 102c in
Chicago and 103c in Minneapolis.
Seasonally, wheat futures prices typically trend lower into July with the advance of the winter wheat harvest. That
seemed to be holding true this year. Other
factors also contributed pressure, including wariness over possible Commodity
Futures Trading Commission action to
change position limits on index funds in
the wheat market. A Senate subcommittee report last week blamed index fund
traders for significantly contributing to
the surge in wheat prices to record levels
in 2008. The report's assertions were disputed by the CME Group but supported
by some associations representing commercial participants in futures markets.
Traditional commodity funds were sellers last week.
Despite the steep decline in U.S. wheat
prices, U.S. wheat offers still weren't low
enough to capture business with key importers. Egypt bought 60,000 tonnes of
French wheat last week and Jordan purchased 100,000 tonnes of hard milling
wheat from Black sea origins. Net sales

of U.S. export wheat during the week
ended June 18 were slightly above trade
expectations at 368,300 tonnes.
The winter wheat harvest was gaining
momentum after a slow start. The U.S.
Department of Agriculture estimated
20% of the harvest was completed by
June 21 compared with 31% as the recent five-year average for the date. There
were concerns voiced over the low average protein of the early-harvested hard
red winter wheat crop and quality issues
that have arisen with the soft red winter
wheat crop in the Southeast and along
the river valleys of the Central states.
Farmer selling of new crop winter
wheat was limited with producers chagrined at the plunge in wheat prices. At
the same time, there were indications the
pace of sales was picking up ahead of the
weekend.
The U.S. dollar index traded sideways
most of last week. MBN

 Millfeed

Irregular price trends developed last
week even as several markets saw appreciable gains in the spot and July, while
witnessing sizable losses in the deferred,
especially October-December.
Nearby gains were due to tightness and
mounting concern over supply given

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu

Kansas City
July
September
December
March
Chicago
July
September
December
March
Minneapolis
July
September
December
March

Season's
Low

- Change from -
June 19 June 12

Week's
High
Low

Year
ago

High

5.89½
6.00
6.16½
6.32

-25¼c
-25¼c
-24¼c
-24c

-47½c
-47¼c
-47c
-46½c

6.09½
6.20
6.35
6.49½

5.87
5.97
6.14
6.31

9.25
9.45
9.66
9.85

11.35
11.25
11.35
10.08½

(03-12-08)
(03-12-08)
(03-12-08)
(08-21-08)

4.60
5.41
5.73½
5.89¼

(03-02-07)
(12-04-08)
(03-03-09)
(03-03-09)

5.34¼
5.63
5.87¼
6.03¾

-21c
-21½c
-23½c
-23½c

-50½c
-50¼c
-53c
-54c

5.51
5.80
6.06
6.17½

5.30
5.56
5.83½
6.01½

8.95½
9.12
9.35½
9.55¾

11.40¾
11.26
11.40
10.57

(03-12-08)
(03-12-08)
(03-12-08)
(03-18-08)

4.47
5.26½
5.57¾
5.61½

(10-20-06)
(06-18-09)
(03-03-09)
(12-05-08)

6.67¼
6.67¼
6.78¾
6.89¼

-31¾c
-28½c
-29c
-30¼c

-65¼c
-59c
-57¾c
-57¼c

7.06¼
6.97½
7.08
7.19¼

6.66
6.67
6.78
6.89

12.20
11.17
11.70
9.33

(03-12-08)
(03-10-08)
(03-12-08)
(07-09-08)

5.58½
5.60
5.94
6.16¾

(12-05-08)
(12-01-08)
(03-03-09)
(03-27-09)

June 26

prospective slower flour grind during the
Independence Day weekend. Forward
declines reflected some losses in corn and
other feed ingredient prices. There were
indications merchandisers were pushing forward coverage more aggressively
along with some flour mills covering
flour bookings, mainly July-September.
End users continued to resist forward
coverage, but some appeared to find the
long sought "bargains" and booked July-September. Considerable forward interest surfaced in the Central states and
Northeast in contrast to the Midwest
and western markets. Many flour mills
resisted deferred sales because of ongoing running time uncertainties. This and
recent price volatility prompted caution.
A seasonal pickup in regional feed demand, including creep feed in the Upper
Midwest and catfish feed in the Southeast, had only limited price impact.
Wheat germ prices were unchanged.
Some merchandisers had difficulty moving material, but some larger users had
difficulty finding supplies.
Bulk middlings were $87 a ton in K.C.
and $84 in Minneapolis compared with
corn at $133 a ton and sorghum at $101,
both K.C. Corn gluten feed was at $105 a
ton, distillers' dried grain at $143 a ton and
dehydrated alfalfa at $220 a ton, all K.C. MBN

12.12
10.02¼
10.13
10.32

Chicago wheat futures
September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
87 @ 93
Southwest, f.o.b. truck
92 @ 98
Minneapolis
88 @ 93
Upper Midwest, f.o.b. truck 84 @ 89
Chicago West
101 @ 106
Central states, f.o.b truck 88 @ 92
Buffalo
85 @ 95
Southeast
73 @ 75
N. & S. California
134 @ 144
Los Angeles, f.o.b. truck 130 @ 140
Pacific Northwest
100 @ 110
Upper Midwest, sacked
235
Wheat germ
185 @ 195
34 / June 30, 2009

Milling & Baking News

- Change from - Year
July
June 19 June 12
ago
Aug.
82 @ 87 +4@ +4 +7@ +8 137 @ 142 80 @ 84
92 @ 97 +3@ +2 +7@ +8 140 @ 145 90 @ 94
86 @ 93
-5@ -3 +1@ +3 151 @ 161 86 @ 93
82 @ 89
-5@ -3 +1@ +3 147 @ 147 82 @ 89
99 @ 106 -5@ -3 +1@ +3 164 @ 174 99 @ 106
84 @ 89 +2@ +4 +4@ +4 128 @ 138 82 @ 87
80 @ 90
-
+5@ +5 107 @ 117 75 @ 85
73 @ 78
-
-2@ -3
121 @ 127 75 @ 78
119@ 134 -10@ -10 -6@ -1
214 @ 229 113 @ 128
115@ 130 -10@ -10 -6@ -1
210 @ 225 109 @ 124
100@ 115 -6@ -1
-6@ -1
190 @ 200 100 @ 115

Sept.
80 @ 84
90 @ 94
89 @ 96
85 @ 92
102 @ 109
82 @ 87
75 @ 85
75 @ 78
110 @ 125
106 @ 121
100 @ 115

Oct.-Dec.
95 @ 100
105 @ 110
96 @ 101
92 @ 97
109 @ 114
90 @ 96
85 @ 100
88 @ 95
114 @ 129
110 @ 125
115 @ 130

Minneapolis wheat futures
September contract, $ per bu

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Milling & Baking News - June 30, 2009

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