Milling & Baking News - February 23, 2010 - 49



 Cash Wheat

HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
2c a bu lower to 9c higher last week, although the basis had a firmer tone overall with only 12.2%-protein wheat down
2c. Ordinary wheat was 3c higher with
11% through 11.8% unchanged, as were
12.4% and the highest protein levels of
13.6% through 14%. The mid-level proteins saw minor mixed changes but 13%
through 13.4% wheat was 9c higher.
Mills in most cases received adequate
supply of contract wheat as railroads
have caught up from earlier weather delays. But light offers on the spot market
most of the week prompted firmer bids
for specific protein levels.
Farmer selling of wheat increased
modestly when futures prices spiked
Feb. 16, but subsequent declines discouraged additional sales.
The U.S. Department of Agriculture in
its Feb. 9 World Agricultural Supply and
Demand Estimates projected June 1, 2010,
carryover of hard winter wheat at 421
million bus, down 10 million bus from
its January projection but up 167 million
bus, or 66%, from 2009. The decline was
the result of an increase in 2009-10 hard
winter exports, at 310 million bus.
The Texas field office of the U.S.D.A. rated that state's wheat condition on Feb. 14
at 33% good to excellent (30% a week earlier), 42% fair and 25% poor to very poor.
"Winter wheat has improved with
the surplus moisture," the office said.
"Spring wheat emerged in the TransPecos and progressed well; however,
some fields have standing water in them.
Wheat producers were ready to begin
top-dressing fertilizer and herbicide,
but conditions were still too wet in the
Northern High Plains."
A meteorologist addressing members

No. 1 hard winter
Basis Kansas City March, cents per bu
Feb. 19 - Change from -
Premium Feb. 12 Feb. 5
Ordinary -22 @ -7 +3 @ +3 +4 @ +4
11%
-7 @ 8
-
-
11.2%
0 @ 15
-
-
11.4%
30 @ 45
-
+9 @ +9
11.6%
37 @ 52
-
+12 @ +12
11.8%
37 @ 52
-
+12 @ +12
12%
38 @ 53 +1 @ +1 +9 @ +9
12.2%
39 @ 54 -2 @ -2 +10 @ +10
12.4%
41 @ 56
-
+3 @ +3
12.6%
47 @ 62 +1 @ +1 +7 @ +7
12.8%
47 @ 62 +1 @ +1 +7 @ +7
13%
55 @ 70 +9 @ +9 +15 @ +15
13.2%
55 @ 70 +9 @ +9 +15 @ +15
13.4%
55 @ 70 +9 @ +9 +12 @ +12
13.6%
65 @ 80
-
-
13.8%
65 @ 80
-
-
14%
65 @ 80
-
-
bakingbusiness.com / world-grain.com

Year
ago
32 @ 47
40 @ 55
44 @ 59
45 @ 60
50 @ 65
62 @ 77
65 @ 80
68 @ 83
68 @ 83
68 @ 83
68 @ 83
75 @ 90
75 @ 90
79 @ 94
81 @ 96
81 @ 96
85 @ 100

of the Kansas City Board of Trade last
week forecast a wet, cold system similar
to that of late December for the hard red
winter wheat region beginning late last
week. By the end of spring, there "won't
be a dry patch left" in the region, he said.
HARD SPRING. Premiums on hard red
spring wheat again registered mixed
changes last week, but the trend was
weaker as railroads gained ground in
catching up on weather-delayed contract
deliveries, limiting demand for spot offers. The spreads between high and low
sides of most premium ranges narrowed
last week. The high sides of price ranges
for 13%- through 15%-protein wheat
dropped 10@105c, while the low sides of
the ranges were 25c higher to 55c lower.
Spreads between high and low sides of
premium ranges for specific proteins reflected both gradations in protein level
within a protein range and quality.
The spring wheat basis reflected Chicago/beyond values with the rail freight
spread holding at 15c a bu for Minneapolis and 25c a bu for Duluth-Superior,
and based on the Minneapolis March
wheat future, the U.S.D.A. said.
Hard spring wheat carryover on June
1, 2010, was projected at 272 million bus,
up 5 million bus from January and up
130 million bus, or 92%, from last year,
the U.S.D.A. said in its latest WASDE
report. The increase resulted from an
expected drop in 2009-10 hard spring exports, projected to 195 million bus.

No. 1 hard spring

SOFT RED. Mill bids on soft red winter
wheat were firm to 10c a bu higher last
week. In Kansas City, No. 1 soft red bids
held at 50c under K.C. March to 60c over.
The wide spread in bids reflected great
variation in quality because of widespread incidence of sprouting and vomitoxin in the 2009 crop. Some Missouri
mills continued to reach out for supply
because of poor quality of local soft red
winter with some looking as far north as
Wisconsin for March delivery. Gulf bids
on soft red for nearby were 5c higher at
40c over Chicago March. St. Louis mill
bids were 30c over Chicago March. Chicago mill bids were 30c under Chicago
March. Mill bids in Toledo for nearby advanced 5c, to 50c under Chicago March;
March, 45c under; April-May, 50c under
May; June, 55c under July; new crop, 45c
under July. Elevator bids were 52c under
March; new crop, 55c under July. Cincinnati mill bids advanced 10c, to 40c under
Chicago March; new crop, 35c under July.
Elevator bids were 55c under March; new
crop, 38c under July. Michigan white
wheat mill bids were 75@85c over Chicago March; new crop, 40c over July.
Soft red wheat carryover on June 1,
2010, was projected at 203 million bus,
up 7 million bus from the January projection and up 32 million bus, or 19%,
from 2009, the U.S.D.A. said in its latest
WASDE report. The increase was due to
an expected rise in feed wheat imports
from Europe and South America into the
Southeastern U.S. in 2009-10. MBN

Cash wheat

Basis Minneapolis March, delivered Chicago\beyond
cents per bu
Feb. 19
- Change from -
Year
Premium Feb. 12
Feb. 5
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
-5 @ 15 -17 @ 0
-15 @ +5
...
13%
50
+10 @ -30 +10 @ 0
...
13.5%
105
+25 @ -105 +25 @ -30
...
14%
200 @ 240 -10 @ -10 -10 @ +15
...
14.5%
280 @ 310 -55 @ -40 +30 @ -15
...
15%
400
0 @ -15 +50 @ +25
...
16%
...
...
...
...

Exporter bids and offers
For
Feb. 19
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
February
+73 March
...
March
+70 March
80
April
+66 May
70
May
+66 May
70
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
February
+40 March
50
March
+40 March
50
April
+25 May
40
May
+25 May
40

Ingredient Week

Year ago
bid

...
+80 March
+72 May
+74 May

-20
-18
-22
-20

March
March
May
May

Feb. 19 - Change from -
For shipment
Bid
Feb. 12 Feb. 5
No. 1 Soft White, Track, Portland
$ per bu
February
...
...
...
March
...
...
...
April
...
...
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
February
...
...
...
March
0.42
-
-
April
0.42
+0.07
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
February
1.60
-
-
March
1.65
-
-
April
1.65
-
-

Year
ago
5.75
5.75
5.75
0.35
0.35
0.40

1.60
1.60
1.60

Canadian domestic milling wheat
Change from Year
In-store, Thunder Bay,
Feb. 19
Feb. 12
ago
Canadian $ per tonne
Western red spring 13.5% 263.61
-1.26
338.81
Soft white spring
212.49
+7.41
267.27
Amber durum
231.64
-2.46
433.15
U.S. $ per bu
Western red spring 13.5%
6.89
0.04
7.35
Soft white spring
5.55
0.25
5.80
Amber durum
6.05
-
9.40
Milling & Baking News February 23, 2010 / 49
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - February 23, 2010

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