Milling & Baking News - February 9, 2010 - 38

Ingredient Week 

 Wheat Futures

Trading in wheat futures was choppy
last week with contracts opening higher
but losing ground at midweek and finishing with only minor changes. At their
weakest, futures prices approached the
contract lows set in late September and
early October.
U.S. and world wheat supply-and-demand fundamentals seemed to argue for
a test of contract lows with U.S. 2009-10
wheat ending stocks forecast to be the largest in 22 years and world 2009-10 wheat
ending stocks forecast to be the largest since
2001-02. Additionally, the reallocation of index fund capital expected at the beginning
of the month was yet to develop.
Net sales of U.S. export wheat during
the week ended Jan. 28 totaled 418,200
tonnes, down 37% from the previous
week and down 5% from the recent
four-week average, according to the U.S.
Department of Agriculture. The weekly
aggregate was within the range of prereport trade estimates.
U.S. wheat offers were undercut by
those from other suppliers in major
international tenders last week. Iraq
bought 700,000 tonnes of wheat including 400,000 tonnes from Canada but
none from the United States. Egypt
bought 240,000 tonnes of Russian,

Kazakh and French wheat, and Jordan bought 100,000 tonnes of Black sea
wheat. Morocco and Algeria also bought
non-U.S. wheat.
The U.S. dollar index traded higher,
exerting pressure on some commodities
such as gold, but crude oil traded sideways during the week and agricultural
futures seemed mostly unaffected. Equity
markets declined with the Dow Jones Industrial average dropping below 10,000.
The drop was attributed largely to concerns about the possibility some European nations might default on huge debts.
Farmer wheat selling was light.
Another winter storm swept across the
winter wheat states and the Upper Midwest. The weather was expected to be
stormy during the rest of the month, and
spring weather was forecast to be wet and
cool, which might slow planting. MBN

 Millfeed

Millfeed prices plunged in some
regions and declined in all areas last
week despite ongoing light flour grind.
Weaker demand due to substitution with
lower-priced ingredients along with less
feed consumption in general as temperatures moderated from January was the
main pressuring factor.
Prices fell hardest in the Southwest,

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu
Feb. 5
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

where spot values plummeted more
than $30 a ton. Traders said millfeed
had become overpriced, indicated by
nearly equal per-ton values with corn
(basis Kansas City). Good demand coupled with light flour grind had driven
millfeed values higher despite falling
corn prices in January. But supportive
demand seemingly vanished last week.
Spot values sank about $20 in the Southeast and about $10 in the Upper Midwest, Central states and California. Spot
prices held steady in the Northeast and
Pacific Northwest, but deferred values
fell in all markets. Only light flour grind
kept prices from falling even harder, although by the week's end, some material
was available in most markets.
The spot premium to balance-February disappeared in several markets, but
March prices were well below February
levels, making users cautious about buying too far ahead. Buying inquiries were
noted as far forward as September.
Wheat germ prices were unchanged.
Bulk middlings were $85 a ton in K.C.
and $92 in Minneapolis compared with
corn at $119 a ton and sorghum at $106,
both K.C. Corn gluten feed was $18
lower at $122 a ton, distillers' dried grain
down $7 at $118 a ton and dehydrated alfalfa unchanged at $200 a ton, all K.C. MBN

- Change from -
Week's
Jan. 29 Jan. 22 High
Low

Year
ago

High

Season's
Low

4.84½
4.96¼
5.07
5.19

-2½c
-2¾c
-3¼c
-3c

-17½c
-17¾c
-18¾c
-17¾c

5.03
5.14½
5.25¾
5.34½

4.80¾
4.92½
5.04½
5.19

5.86½
5.97½
6.08½
6.19½

10.08½
7.71¾
11.20
7.83

(08-21-08)
(06-01-09)
(03-12-08)
(06-02-09)

4.75¼
4.86¾
4.98¼
5.09¾

(10-05-09)
(10-02-09)
(10-02-09)
(10-02-09)

4.73¼
4.88
5.00½
5.16¾

-¾c
-¼c
+¼c
+1c

-25¼c
-24¼c
-23½c
-22½c

4.91
5.03½
5.17½
5.29

4.66½
4.81
4.93½
5.11¼

5.57
5.70
5.82¼
6.07

10.57
7.47¼
11.13½
7.64

(03-18-08)
(06-01-09)
(03-12-08)
(06-02-09)

4.60
4.73½
4.85½
5.00

(10-02-09)
(10-02-09)
(10-02-09)
(10-02-09)

5.02½
5.14¾
5.25½
5.36¾

+1¾c
+2½c
+2c
+2¼c

-10c
-9¼c
-10½c
-10½c

5.16¾
5.28¼
5.40
5.51

4.97
5.08¾
5.20
5.31

6.54¾
6.41
6.34¾
6.39¼

9.65
9.65
9.65
8.20¼

(08-14-08)
(08-13-08)
(08-13-08)
(06-02-09)

4.93
5.04¾
5.13½
5.25

(09-30-09)
(09-30-09)
(10-02-09)
(10-02-09)

Chicago wheat futures
March contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
85 @ 90
Southwest, f.o.b. truck
110 @ 115
Minneapolis
92 @ 99
Upper Midwest, f.o.b. truck 88 @ 95
Chicago West
105 @ 112
Central states, f.o.b truck 105 @ 112
Buffalo
98 @ 108
Southeast
84 @ 90
N. & S. California
112 @ 124
Los Angeles, f.o.b. truck 108 @ 120
Pacific Northwest
130 @ 140
Upper Midwest, sacked
240
Wheat germ
240 @ 260

Feb.
84 @ 90
110@ 115
89 @ 94
85 @ 90
102@ 107
98 @ 105
95 @ 105
80 @ 86
112@ 122
108@ 118
125@ 135

38 / February 9, 2010 Milling & Baking News

- Change from - Year
Jan. 29
Jan. 22
ago
-23 @ -22 -23 @ -22 128 @ 133
-15 @ -15 -17 @ -17 138 @ 143
-5 @ -10 -3 @ -3 111 @ 116
-5 @ -10 -3 @ -3 107 @ 112
-5 @ -10 -3 @ -3 124 @ 129
-12 @ -15 -7 @ -10 109 @ 115
-
+8 @ +10 105 @ 115
-15 @ -19 -5 @ -4
96 @ 106
-4 @ -4 -11 @ -11 121 @ 131
-4 @ -4 -11 @ -11 117 @ 127
-
-
130 @ 140

March
78@ 83
90@ 95
82@ 87
78@ 83
95@ 100
90@ 98
85@ 95
72@ 78
110@ 120
106@ 116
120@ 135

April-June July-Sept.
60 @ 65
64 @ 69
70 @ 75
75 @ 80
70 @ 75
73 @ 78
66 @ 71
69 @ 74
83 @ 88
86 @ 91
70 @ 78
...@ ...
73 @ 83
68 @ 78
61 @ 67
...@ ...
107 @ 117 ... @ ...
103 @ 113 ... @ ...
115 @ 130 115 @ 130

Minneapolis wheat futures
March contract, $ per bu

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Milling & Baking News - February 9, 2010

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