Milling & Baking News - August 10, 2010 - 42

Ingredient Week 

Wheat Futures
Wheat prices posted another round
of sensational gains last week even after
profit-taking during the final session that
pushed prices of many contracts down the
daily limit. The announcement by Russian
Prime Minister Vladimir Putin that Russia
would halt grain exports for the rest of the
year beginning Aug. 15 provided highly
combustible fuel that accelerated the price
rally that began in mid-June.
At the market's close on Aug. 5, September futures in Chicago, Kansas City
and Minneapolis were at $7.85¾, $7.80½
and $7.83 a bu, respectively. The numbers marked advances from June 9 values of 77% in Chicago, 66% in Kansas
City and 57% in Minneapolis.
Importantly, the value of the dollar
slumped for the entire period of wheat's
rally, encouraging foreign demand for
U.S. wheat even amid surging prices. The
U.S. Department of Agriculture indicated
net export sales of U.S. wheat during
the week ended July 29 totaled 854,600
tonnes, down 7% from the previous
week's unexpectedly strong sales but up
61% from the recent four-week average.
The Russian grain export ban was
expected to shift additional foreign
wheat demand to the United States. The
U.S.D.A. on July 9 forecast U.S. wheat

exports in 2010-11 at 1 billion bus. The
trade anticipated the Russian actions
could increase U.S. exports by 150 million to 200 million bus.
Even with an expansion in export demand for U.S. wheat, there was no shortage of supply envisaged in the United
States with the 2011 carryover currently
forecast at more than a billion bus and
a bumper spring wheat harvest under
way. Production shortfalls in Russia, Kazakhstan and Canada tightened world
stocks, but the world, too, seemed to
have adequate supply with the International Grains Council forecasting 201011 ending stocks at 192 million tonnes,
down 5 million tonnes from the previous
year but up 24 million tonnes from 200809 and up 71 million tonnes from 200708. The U.S.D.A. will issue revised U.S.
and world wheat supply and demand
estimates on Aug. 12. MBN

Millfeed
Millfeed markets were unsettled last
week as soaring wheat futures prices
pulled corn futures prices upward and
sent buyers to the sidelines. Price ranges
widened in several areas as sellers raised
offer levels based on rising corn prices,
but buyers resisted due to a lack of demand, with a notable exception. Flour

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

Aug. 6

- Change from -
July 30 July 23

Week's
High
Low

Year
ago

High

7.20
7.35
7.43
7.22

+45½c
+43½c
+36½c
+12½c

+105c
+103c
+95¼c
+67¼c

8.22¾
8.37¼
8.43½
8.14

6.71¼
6.88
7.01
7.09

5.25¼
5.42
5.59
5.69¾

8.22¾
10.28¾
8.43½
8.14

(08-06-10)
(08-21-08)
(08-06-10)
(08-05-10)

4.67¼
4.85
5.03
4.61½

(06-11-10)
(06-11-10)
(06-11-10)
(03-31-10)

7.25¾
7.55¼
7.58
7.32¾

+64¼c +129½c
+61½c +127¾c
+44½c +106½c
+18¼c +73¾c

8.41
8.68
8.64¼
8.28¼

6.57
6.89
7.10
7.13½

4.89½
5.16¾
5.36
5.48¼

8.41
10.28½
8.64¼
8.28¼

(08-06-10)
(08-21-08)
(08-06-10)
(08-06-10)

4.42½
4.72¾
5.05
4.47

(06-08-10)
(06-08-10)
(06-11-10)
(04-05-10)

7.23
7.32½
7.37¾
7.35

grind was mixed from a week earlier.
Nearby millfeed prices advanced
$3@5 a ton on the West coast due to
gains in corn and tightening supplies.
Prices gained about $5 in the Northeast,
although values remained near the lowest in the country and contributed to
declines of about $5 in Central states, as
did low values in the Southeast. Nearby
prices eased in the Upper Midwest despite strong creep feed demand, but material from other regions boosted supply.
Southwest nearby rail ended unchanged,
but truck material rose $6 for the week.
While most trading was nearby, traders noted more buyer interest in OctoberDecember and even January-March. But
mills were reluctant to offer millfeed that
far out due to light flour bookings. Deferred values in most regions advanced
on the gains in corn prices.
Ongoing hot weather across parts of the
country continued to stifle feed demand,
including from Southeast catfish feeders.
Wheat germ prices were unchanged.
Bulk middlings were $60 a ton in K.C.
and $72 in Minneapolis compared with
corn at $132 a ton and sorghum at $120,
both K.C. Corn gluten feed was $6 higher
at $118 a ton, distillers' dried grain was
up $4 at $116 a ton and dehydrated alfalfa
was steady at $205 a ton, all K.C. MBN

+35¼c
+29¾c
+19¼c
+8½c

+94½c
+87¾c
+78¼c
+69c

8.21¾
8.09
8.64¼
8.28¼

7.25½
7.21½
7.10
7.13½

5.73¼
5.85
6.00¾
6.11½

8.33
8.40
8.44¼
9.65

(08-06-10)
(08-06-10)
(08-06-10)
(08-13-08)

4.97
5.14
5.32¼
4.81½

(06-09-10)
(06-10-10)
(06-09-10)
(03-31-10)

Chicago wheat futures
September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
60 @ 66
Southwest, f.o.b. truck
76 @ 82
Minneapolis
76 @ 82
Upper Midwest, f.o.b. truck 72 @ 78
Chicago West
89 @ 95
Central states, f.o.b truck 60 @ 66
Buffalo
53 @ 59
Southeast
50 @ 56
N. & S. California
107 @ 122
Los Angeles, f.o.b. truck 103 @ 118
Pacific Northwest
90 @ 100
Upper Midwest, sacked
230
Wheat germ
265 @ 300

Aug.
62 @ 68
78 @ 84
76 @ 82
72 @ 78
89 @ 95
62 @ 68
54 @ 60
52 @ 58
107@ 122
103@ 118
95 @ 110

44 / August 10, 2010 Milling & Baking News

- Change from - Year
July 30
July 23
ago
0 @ +2 +8 @ +10 75 @ 80
+6 @ +7 +14 @ +15 90 @ 95
-3 @ -2
+1 @ +2 97 @ 106
-3 @ -2
+1 @ +2 93 @ 102
-3 @ -2
+1 @ +2 110 @ 119
-5 @ -4
-4 @ -4
83 @ 90
+5 @ +5 +4 @ +5 80 @ 90
0 @ +1
-1 @ 0
72 @ 78
+3 @ +3 +5 @ +5 104 @ 114
+3 @ +3 +5 @ +5 100 @ 110
+5 @ 0
+5 @ 0
90 @ 100

Sept.
66@ 72
80@ 86
78@ 84
74@ 80
91@ 97
64@ 70
56@ 62
54@ 60
107@ 122
103@ 118
100@ 115

Oct.-Dec. Jan.-Mar.
92 @ 98
95 @ 101
102 @ 108 105 @ 111
86 @ 92
88 @ 94
82 @ 88
84 @ 90
99 @ 105 101 @ 107
82 @ 88
82 @ 88
70 @ 78
80 @ 90
75 @ 80
...@ ...
110 @ 125 ... @ ...
106 @ 121 ... @ ...
105 @ 120 ... @ ...

Minneapolis wheat futures
September contract, $ per bu

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - August 10, 2010

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