Milling & Baking News - July 28, 2009 - 34

Ingredient Week 

 Wheat Futures

Prices dropped in the wheat futures
markets of Chicago, Kansas City and
Minneapolis last week. The week before,
prices had posted solid gains, which
had ended an extended slide and raised
ideas that season's lows in wheat futures
may have been set earlier in July.
The government threw a couple of
curve balls that put markets off balance last week. Gary Gensler, chairman of the Commodity Futures Trading
Commission, testifying before a Senate
panel considering "excessive speculation in the wheat market," indicated the
C.F.T.C. might consider imposing new
limits on the number of wheat contracts
index funds are allowed to hold, which
helped send prices lower in Chicago
and Kansas City on Wednesday.
On Thursday, the U.S. Department of
Agriculture announced it would collect
new data on corn plantings from producers in seven states before it issued its
August Crop Production report. It was
expected the resurvey might result in
a reduction in the U.S.D.A. estimate of
the 2009 corn area of a half-million acres
or more. This sent corn futures sharply
higher, and wheat followed.
The winter wheat harvest was ap-

proaching its end. Combining was 72%
completed on July 19 compared with
77% as the recent five-year average for
the date. Hard winter wheat yields were
heavy except in Oklahoma and Texas.
Egypt bought 60,000 tonnes of wheat
from Russia last week, which surprised
many in the trade. Egypt and Russia had
been at loggerheads over recent Russian
wheat shipments that were rejected by
Egyptian authorities. Indications were
U.S. export sales last week were routine.
Net sales of U.S. export wheat during the
week ended July 16 were 342,300 tonnes,
which were toward the low end of prereport trade estimates.
Ill-timed rain during the late stages of
the European wheat harvest raised concerns about the quality of the crop still
awaiting the combine. At the same time,
beneficial rain fell across Argentina's
parched cropland. MBN

 Millfeed

Tight supplies supported nearby
millfeed prices last week with Central
and eastern areas stronger than other
regions. Deferred values were pressured by corn futures that sank to seven-month lows at midweek. Prices later
came back as corn surged on Thursday.

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu

Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

Season's
Low

- Change from -
July 17 July 10

Week's
High
Low

Year
ago

High

5.49
5.65¾
5.82
5.92½

-17½c
-17¾c
-17½c
-17¾c

+1½c
+1¼c
+1c
+½c

5.78
5.92½
6.03¾
6.14½

5.47
5.64
5.81
5.92½

8.32¼
8.58
8.80
8.90½

11.25
11.35
10.08½
7.40

(03-12-08)
(03-12-08)
(08-21-08)
(06-04-09)

5.41
5.60½
5.76½
5.87¼

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

5.16¼
5.43½
5.62
5.74¼

-25½c
-24½c
-24¼c
-23c

-2½c
-1¾c
-1¼c
-

5.53
5.79½
5.87¼
5.98¼

5.14
5.41
5.62½
5.74¼

8.11
8.34½
8.55
8.68¼

11.26
11.40
10.57
7.47¼

(03-12-08)
(03-12-08)
(03-18-08)
(06-01-09)

5.12
5.38½
5.56
5.67¾

(07-07-09)
(07-07-09)
(07-07-09)
(07-07-09)

5.91½
6.05¾
6.20¼
6.29¼

-24¾c
-20¼c
-17½c
-15¼c

-11¼c
-6¾c
-3½c
-1c

6.24
6.32¾
6.44½
6.51¼

5.88
6.02
6.17
6.25¾

8.86
8.96¼
9.17
9.20

11.17
11.70
9.33
9.65

(03-10-08)
(03-12-08)
(07-09-08)
(08-13-08)

5.60
5.94
6.16¾
6.01

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

July 24

By the week's end, most price changes
were minor, with the exception of gains
in the Central States and Northeast and
declines in the Pacific Northwest.
Most trading was limited to nearby, although some buyers held off because of
the nearby premium to August prices in
some markets. But as one broker noted,
recently that practice tended to pull prices higher when buyers scrambled to cover needs a week or so later. Some activity
was evident in October-December as the
premium for that period to August-September narrowed.
Central states and Northeast prices
were driven by strong demand, especially in the Northeast, where flour
grind was strong. In contrast, nearby
supply was tight in the Upper Midwest,
but only fair demand left nearby prices
mostly unchanged. West coast prices
were mixed with California values firming but Pacific Northwest weaker.
Wheat germ prices were mostly steady.
Bulk middlings were $76 a ton in K.C.
and $83 in Minneapolis compared with
corn at $106 a ton and sorghum at $74,
both K.C. Corn gluten feed was at $95 a
ton, distillers' dried grain was at $100 a
ton and dehydrated alfalfa was 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
76 @ 80
Southwest, f.o.b. truck
96 @ 100
Minneapolis
87 @ 92
Upper Midwest, f.o.b. truck 83 @ 88
Chicago West
100 @ 105
Central states, f.o.b truck 90 @ 100
Buffalo
100 @ 105
Southeast
80 @ 85
N. & S. California
114 @ 119
Los Angeles, f.o.b. truck 110 @ 115
Pacific Northwest
90 @ 100
Upper Midwest, sacked
225
Wheat germ
195 @ 205
34 / July 28, 2009 Milling & Baking News

- Change from - Year
July
July 17
July 10
ago
76 @ 80
+3 @ +2 +13 @ +12 148 @ 153
96 @ 100 +8 @ +7 +16 @ +15 163 @ 168
87 @ 92
+1 @ +1 +2 @ +2 150 @ 160
83 @ 88
+1 @ +1 +2 @ +2 146 @ 156
100@ 105 +1 @ +1 +2 @ +2 163 @ 173
90 @ 100 +5 @ +10 +13 @ +18 150 @ 160
100@ 105 +10 @ +5 +20 @ +17 130 @ 140
80 @ 85
0 @ -1 +15 @ +15 140 @ 145
114@ 119 +5 @ 0
+3 @ -7 199 @ 209
110@ 115 +5 @ 0
+3 @ -7 195 @ 205
90 @ 100 -5 @ -5
-5 @ -5 178 @ 185

Aug.
Sept.
72 @ 76
72 @ 76
82 @ 86
82 @ 86
87 @ 92
87 @ 92
83 @ 88
83 @ 88
100 @ 105 100 @ 105
82 @ 90
80 @ 88
85 @ 90
75 @ 85
75 @ 80
75 @ 80
109 @ 119 109 @ 119
105 @ 115 105 @ 115
85 @ 95
85 @ 95

Oct.-Dec.
80 @ 85
90 @ 95
89 @ 94
85 @ 90
102 @ 107
84 @ 92
80 @ 90
80 @ 85
104 @ 114
100 @ 110
90 @ 100

Minneapolis wheat futures
September contract, $ per bu

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Milling & Baking News - July 28, 2009

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