Milling & Baking News - July 14, 2009 - 34

Ingredient Week 

 Wheat Futures

Wheat futures prices continued to
tumble last week. U.S. Department of
Agriculture planted area estimates for
wheat, corn and soybeans were raised on
June 30, and crop production and 200910 supply/demand estimates issued July
10 reflected the impact of the increased
plantings estimates on production of the
principal crops as well as the heavy yields
in the hard winter wheat harvest.
The U.S.D.A. projected the carryover
of wheat on June 1, 2010, at 706 million
bus, up 59 million bus from the June
forecast and up 39 million bus from 667
million bus in 2009. It would be the largest wheat carryover since 777 million
bus in 2002. Wheat supply in 2009-10
was projected at 2,894 million bus, up 94
million bus from June but down 1% from
2008-09. Wheat production was projected at 2,112 million bus, up 96 million bus
from June but down 16% from 2008. Imports were projected at 115 million bus,
unchanged from June but down 10 million bus from the 2008-09. Total wheat
use in 2009-10 was projected at 2,188 million bus, up 35 million bus from June but
down 3% from 2008-09. Domestic wheat
use was projected at 1,263 million bus,
up 10 million bus from June and up 15
million bus from 2008-09. Wheat exports

in 2009-10 were projected at 925 million
bus, up 25 million from June but down
90 million bus from 2008-09.
World wheat 2009-10 ending stocks
were forecast at 181.28 million tonnes,
down 1.37 million tonnes from the June
forecast but up 8% from 2008-09.
The U.S.D.A. pegged the U.S. winter
wheat harvest at 56% completed on July
5 compared with 40% the previous week,
and 59% as the recent five-year average
for the date. The spring wheat progress
continued to lag the average pace by at
least a couple of weeks, but the crop's
condition remained strong, estimated
at 72% good to excellent compared with
76% a week earlier and 69% last year.
Export demand for U.S. wheat expanded as buyers took advantage of
declining prices. Net sales of U.S. export
wheat during the week ended July 2 totaled 584,300 tonnes, well above trade
estimates. Routine buyers were joined by
Nigeria, Philippines, Indonesia and Venezuela to make for a strong week. Saudi
Arabia and Egypt bought from both the
U.S. and competing suppliers. MBN

 Millfeed

Wide downturns dropped millfeed
prices at some points to the lowest levels
since April, although markets exhibited

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 -
July 2 June 26

Week's
High
Low

Year
ago

High

5.40
5.47½
5.64½
5.81

-14¾c
-16¾c
-16¼c
-15¾c

-49½c
-52½c
-52c
-51c

5.50
5.62
5.78½
5.93

5.35¼
5.44
5.60½
5.76½

8.53
8.64½
8.86
9.07

11.35
11.25
11.35
10.08½

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

4.60
5.41
5.60½
5.76½

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

4.91¾
5.18¾
5.45¼
5.63¼

-8½c
-10¼c
-9¾c
-9½c

-39½c
-44¼c
-42c
-40½c

4.98
5.29
5.54
5.69½

4.83¾
5.12
5.38½
5.56

8.19
8.30¾
8.55
8.78

11.40¾
11.26
11.40
10.57

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

4.47
5.12
5.38½
5.56

(10-20-06)
(07-07-09)
(07-07-09)
(07-07-09)

6.02½
6.02¾
6.12½
6.23¾

-15½c
-19¾c
-19¾c
-20½c

-64¾c
-64½c
-66¼c
-65½c

6.11½
6.25
6.32¼
6.40

5.99½
6.00¾
6.10
6.21½

9.81
8.96½
9.09¾
9.23

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)

July 10

increased stability or even strength at the
lower values. The widest losses were in
the Southwest. Central states and eastern
areas rallied at weekend. West coast saw
moderate to sharp declines. Upper Midwest nearby through July were higher.
The lower values generated buying in
both nearby and deferred periods. There
were indications mills were hedging flour
sales at least through March and hints of
mixers taking July-September coverage
in some areas. At the same time, some potential sellers remained hesitant to book
millfeed at current levels in view of the
price relationship with corn.
Some traders were reluctant to take
a position given the recent volatility in
corn and other feed ingredients. Still,
the current sharp discount for millfeed
presented a temptation to buy. Tight
millfeed supplies in some markets provided support for spot values, although
a number of markets were relatively flat
through September.
Wheat germ again lost $5 a ton.
Bulk middlings were $63 a ton in K.C.
and $81 in Minneapolis compared with
corn at $110 a ton and sorghum at $77.50.
K.C. Corn gluten feed was off $5 at $105
a ton, distillers' dried grain was also
down $5 at $110 a ton and dehydrated alfalfa was steady at $210 a ton, all K.C. MBN

Chicago wheat futures
September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
63 @ 68
Southwest, f.o.b. truck
80 @ 85
Minneapolis
85 @ 90
Upper Midwest, f.o.b. truck 81 @ 86
Chicago West
98 @ 103
Central states, f.o.b truck 80 @ 87
Buffalo
80 @ 90
Southeast
65 @ 70
N. & S. California
114 @ 124
Los Angeles, f.o.b. truck 110 @ 120
Pacific Northwest
95 @ 105
Upper Midwest, sacked
235
Wheat germ
175 @ 185
34 / July 14, 2009 Milling & Baking News

July
63 @ 68
80 @ 85
85 @ 90
81 @ 86
98 @ 103
77 @ 82
80 @ 88
65 @ 70
111@ 126
107@ 122
95 @ 105

- Change from - Year
July 2
June 26
ago
-9 @ -9 -19 @ -19 146 @ 151
-2 @ -2 -12 @ -12 160 @ 165
+6 @ +6
-1 @ -3 156 @ 166
+6 @ +6
-1 @ -3 152 @ 162
+6 @ +6
-1 @ -3 169 @ 179
+7 @ +8
-7 @ -7 140 @ 150
+5 @ +8
0 @ -2 125 @ 140
0 @ -2
-8 @ -8 145 @ 155
-8 @ -8
-8 @ -8 209 @ 219
-8 @ -8
-8 @ -8 205 @ 215
-5 @ -10 -5 @ -10 180 @ 190

Aug.
Sept.
60 @ 65
60 @ 65
75 @ 80
75 @ 80
86 @ 91
86 @ 91
82 @ 87
82 @ 87
99 @ 104 99 @ 104
77 @ 82
77 @ 82
75 @ 85
75 @ 85
65 @ 70
65 @ 70
109 @ 124 106 @ 121
105 @ 120 102 @ 117
95 @ 105 95 @ 105

Oct.-Dec.
71 @ 76
81 @ 86
87 @ 94
83 @ 90
100 @ 107
85 @ 93
82 @ 95
70 @ 77
107 @ 117
103 @ 113
100 @ 105

Minneapolis wheat futures
September contract, $ per bu

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - July 14, 2009

Table of Contents for the Digital Edition of Milling & Baking News - July 14, 2009
