Milling & Baking News - August 24, 2010 - 37

Ingredient Week 

Wheat Futures
Prices of wheat futures declined on
the three exchanges last week as markets
struggled with the valuation of wheat in
the wake of Russia's ban on grain exports
that took effect on Aug. 15 and the resulting
increased world demand for U.S. wheat.
Prices surged well above $8 a bu a couple of
weeks earlier when the ban was announced
but since have retreated. Prices remained
about $2 a bu higher than levels prevailing
when an extended rally began in mid-June.
Rumors Russia may have to import
wheat and not just ban exports were
constructive to prices early last week,
but the Russian government denied there
were plans to import wheat. Ukraine's
attitude toward limiting its exports
seemed uncertain. A proposal was floated
in governing circles that would have
Ukraine setting a quota of 2.5 million
tonnes for wheat and barley exports for
the September-December period, but the
government indicated it would defer
making a decision until this week.
Meanwhile, export demand for U.S.
wheat expanded. The U.S. Department of
Agriculture indicated net export sales of
U.S. wheat during the week ended Aug. 12
totaled 1,412,500 tonnes, up 6% from the
previous week and up 63% from the recent
four-week average. The export number

was above the range of pre-report trade
estimates. Egypt, the world's largest wheat
importer and Russia's biggest customer,
alone accounted for purchases of 594,000
tonnes of U.S. wheat during that week.
The U.S.D.A. indicated the spring
wheat harvest in the six key states was
34% completed by Aug. 15 compared
with 20% a week earlier and 44% as the
recent five-year average for the date.
Rated good to excellent was 82% of the
spring wheat crop in the six key states,
unchanged from the previous week.
Statistics Canada on Aug. 20 projected
2010 Canadian wheat production at
22,659,000 tonnes. The forecast compared
with the U.S.D.A.'s August forecast at
20.5 million tonnes and was above the
range of pre-report trade estimates. The
forecast provided pressure during the
week's final session. MBN

Millfeed
Impressive gains in Kansas City
millfeed prices led other regions higher
last week. Mill grind varied but was generally strong and expected to remain so
until the Labor Day weekend.
A surge of nearly $20 a ton in nearby
Kansas City prices perplexed traders,
sending some to the sidelines hoping for
a downward correction, which resulted in

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 -
Aug. 13 Aug. 6

Week's
High
Low

Year
ago

High

7.05½
7.20¼
7.29¼
7.25¾

-18c
-17¾c
-19¼c
-14c

-14½c
-14¾c
-13¾c
+3¾c

7.26¾
7.41
7.52½
7.45¼

6.72½
6.87½
6.99½
7.00¾

4.93¾
5.09¾
5.26¼
5.37½

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)

6.79
7.12
7.29¼
7.25¾

-23½c
-22¼c
-21½c
-18½c

-46¾c
-43¼c
-28¾c
-7c

7.09
7.40¾
7.58
7.47½

6.45
6.77½
6.99½
7.02½

4.60¼
4.87¼
5.06¾
5.19¼

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)

Aug. 20

7.00
7.14¼
7.23½
7.22½

thin trading at the higher levels. The more
active truck market set the tone with rail
following. Some noted improving end
user demand coupled with inconsistent
flour grind in the Southwest, while others suggested material began to move into
storage when prices were much lower
a couple of weeks earlier. Mills in some
cases canceled previously sold loads, leaving buyers scrambling to cover needs.
The gains prompted interest in substitute
ingredients with soybean hulls and corn
gluten feed seen as cheaper alternatives.
Strength from the Southwest spread
north and east, resulting in modest price
gains despite heavy flour grind in the
Upper Midwest and Central states, although spot values in the latter dropped
Friday as supply grew burdensome.
Supply also was heavy in the Northeast.
West coast prices rose on good demand
and tight supply, especially in California.
Improved interest was seen in OctoberDecember due to increased mill offers.
Wheat germ prices were unchanged.
Bulk middlings were $90 a ton in K.C.
and $78 in Minneapolis compared with
corn at $137 a ton and sorghum at $126,
both K.C. Corn gluten feed was steady at
$118 a ton, distillers' dried grain was up
$4 at $122 a ton and dehydrated alfalfa
was steady at $205 a ton, all K.C. MBN

-14¾c
-13¾c
-15¼c
-13½c

-23c
-18¼c
-14¼c
-12½c

7.22
7.35¾
7.46
7.41¼

6.70
6.87¾
7.00
7.03

5.32
5.44
5.61¼
5.71¾

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
90 @ 95
Southwest, f.o.b. truck
98 @ 106
Minneapolis
82 @ 88
Upper Midwest, f.o.b. truck 78 @ 84
Chicago West
95 @ 101
Central states, f.o.b truck 64 @ 70
Buffalo
55 @ 60
Southeast
58 @ 63
N. & S. California
119 @ 129
Los Angeles, f.o.b. truck 115 @ 125
Pacific Northwest
100 @ 110
Upper Midwest, sacked
250
Wheat germ
265 @ 300

- Change from - Year
Aug.
Aug. 13
Aug. 6
ago
90 @ 95 +19 @ +19 +28@ +27 72 @ 77
98 @ 106 +14 @ +16 +20@ +22 83 @ 88
83 @ 89
+3 @ +3 +7@ +7
86 @ 92
79 @ 85
+3 @ +3 +7@ +7
82 @ 88
96 @ 102 +3 @ +3 +7@ +7
99 @ 105
70 @ 75
+5 @ +5 +8@ +7
64 @ 70
55 @ 60
-3 @ -4
+1@ 0
65 @ 75
58 @ 63
+1 @ +1 +6@ +5
62 @ 68
119@ 129 +2 @ 0 +12@ +7 106 @ 116
115@ 125 +2 @ 0 +12@ +7 102 @ 112
105@ 115 +5 @ +5 +10@ +5
90 @ 100

36 / August 24, 2010 Milling & Baking News

Sept.
Oct.-Dec.
92 @ 96 105@ 110
100 @ 107 113@ 120
85 @ 91
90@ 96
81 @ 87
86@ 92
98 @ 104 103@ 109
73 @ 78
92@ 97
58 @ 64
72@ 78
62 @ 67
80@ 85
119 @ 129 124@ 139
115 @ 125 120@ 135
105 @ 115 110@ 120

Jan.-Mar.
107 @ 112
115 @ 122
94 @ 100
90 @ 96
107 @ 113
92 @ 97
75 @ 81
...@ ...
...@ ...
...@ ...
...@ ...

Minneapolis wheat futures
September contract, $ per bu

bakingbusiness.com / world-grain.com
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Milling & Baking News - August 24, 2010

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