Milling & Baking News - November 2, 2010 - 47

Ingredient Week 

Wheat Futures
Prices of wheat futures on the three exchanges of Chicago, Kansas City and Minneapolis rallied spectacularly last week.
Advancing corn and soy complex futures
exerted an upward pull while nonagricultural markets were mostly neutral.
The advance in corn futures prices resumed after stalling the previous week, and
the soy complex continued its impressive
surge even in the midst of a record harvest.
Wheat derived strength from dry conditions across much of the hard winter
wheat belt and even in some soft red
winter wheat states. Also of concern was
dryness in Western Australia.
The U.S. winter wheat crop was 88%
planted by Oct. 24 compared with 84% as
the recent five-year average for the date,
according to the U.S. Department of Agriculture. Winter wheat emergence was
64%, on par with the average for the date.
In its first composite winter wheat condition report of the season, the U.S.D.A. rated the 2011 winter wheat crop at 47% good
to excellent, 39% fair and 14% poor to very
poor, compared with 62% good to excellent, 33% fair and 5% poor to very poor as
the initial ratings for the 2010 crop last fall.
The International Grains Council made
only minor adjustments to its world wheat
supply-and-demand forecasts for 2010-11.

The I.G.C. projected 2010-11 world wheat
ending stocks at 181 million tonnes, down
2 million tonnes from its September forecast and down 14 million tonnes from the
previous year. The I.G.C. projected world
wheat production in 2010-11 at 644 million
tonnes, unchanged from September but
down 33 million tonnes from 677 million
tonnes in 2009-10. World wheat consumption in 2010-11 was projected at a record
658 million tonnes, up 1 million tonnes
from September and up 7 million tonnes
from 2009-10 disappearance at 651 million
tonnes. World wheat trade in 2010-11 was
projected at 120 million tonnes, up 1 million tonnes from September but down 7
million tonnes from 2009-10.
The U.S.D.A. indicated net export
sales of U.S. wheat during the week ended Oct. 21 totaled 604,400 tonnes, up 5%
from the previous week and up 1% from
the recent four-week average. MBN

Millfeed
Millfeed prices were mixed last week
with nearby values mostly weaker on a
lack of demand for ample supply in several areas and deferred values mostly
higher on rising corn futures prices.
Waning feed demand and strong flour
grind in most regions pressured spot values
with weekend material trading well below

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu

Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

Season's
Low

- Change from -
Oct. 22 Oct. 15

Week's
High
Low

Year
ago

High

7.71
7.86¾
7.94½
7.97

+52c
+52¼c
+52c
+50c

+26c
+27c
+26c
+25½c

7.77½
7.92½
7.98¾
8.03

7.17¼
7.32¾
7.41¾
7.46¼

4.99
5.15
5.26¾
5.37¾

10.28¾
8.43½
8.14
10.50

(08-21-08)
(08-06-10)
(08-05-10)
(06-26-08)

4.85
5.03
4.61½
4.55¼

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

7.17¼
7.57¼
7.75
7.83¾

+46½c
+49c
+47¾c
+47¾c

+12¾c
+16½c
+17¼c
+18½c

7.25
7.64½
7.82
7.91

6.69
7.07¾
7.27
7.35¼

4.94¼
5.14
5.27
5.37¼

10.28½
8.64¼
8.28¼
10.32¼

(08-21-08)
(08-06-10)
(08-06-10)
(06-26-08)

4.72¾
5.05
4.47
4.25½

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

7.76¾
7.91¼
7.97½
8.02¼

+48½c
+48¾c
+46¼c
+45¾c

+22¾c
+23¼c
+21½c
+21¾c

7.85½
7.99½
8.06¼
8.11

7.29
7.43
7.52½
7.58½

5.12¾
5.28
5.41¼
5.51¾

8.40
8.44¼
9.65
9.65

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

5.14
5.32¼
4.81½
4.84½

(06-10-10)
(06-09-10)
(03-31-10)
(06-11-10)

Oct. 29

weekday prices in the Southwest, Upper
Midwest and Central states. Nearby prices
fell about $5 a ton in the Southwest, Upper
Midwest, Central states and Northeast and
about $2 in the Southeast and California.
Several delays and cancellations were noted in the Upper Midwest. The Southwest
also faced slack demand, but lighter flour
grind limited price pressure somewhat.
The exception to nearby weakness was in
the Pacific Northwest where demand was
good despite strong flour grind and prices
moved up about $5 in all periods.
Continued strong gains in corn futures
prices limited nearby millfeed price declines and boosted values in thinly-traded
deferred delivery periods by $2@5 in several markets. Late in the week ideas that
prices were at or near bottom became
more prevalent due to strong corn prices
and better weekend millfeed movement
in some areas. Some mills were sold out
of material through December, when flour
grind typically falls due to the holidays.
Wheat germ prices were unchanged.
Bulk middlings were $125 ton in K.C.
and $113 in Minneapolis compared with
corn at $190 a ton and sorghum at $179,
both K.C. Corn gluten feed was $5 lower
at $175 a ton, distillers' dried grain also
was down $5 at $160 ton and dehydrated
alfalfa held at $205 a ton, all K.C. MBN

Chicago wheat futures
December contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
125 @ 130
Southwest, f.o.b. truck
128 @ 135
Minneapolis
117 @ 127
Upper Midwest, f.o.b. truck 113 @ 123
Chicago West
130 @ 140
Central states, f.o.b truck 113 @ 123
Buffalo
120 @ 130
Southeast
113 @ 118
N. & S. California
159 @ 174
Los Angeles, f.o.b. truck 155 @ 170
Pacific Northwest
150 @ 160
Upper Midwest, sacked
270
Wheat germ
300 @ 320

Nov.
129@ 134
134@ 139
119@ 129
115@ 125
132@ 142
125@ 135
123@ 130
118@ 124
161@ 176
157@ 172
150@ 160

40 / November 2, 2010 Milling & Baking News

- Change from - Year
Oct. 22
Oct. 15
ago
-1 @ -1 -11@ -11 107 @ 112
-1 @ -1 -16@ -16 118 @ 122
-6 @ -5 -15@ -15 109 @ 114
-6 @ -5 -15@ -15 105 @ 110
-6 @ -5 -15@ -15 122 @ 127
-5 @ 0
-7@ -7 100 @ 105
-2 @ -5 -10@ -15 95 @ 105
-2 @ -1
-9@ -11 81 @ 88
-2 @ +3 +1@ +1 124 @ 139
-2 @ +3 +1@ +1 120 @ 135
+5 @ +5 +5@ +5 125 @ 135

Dec.
Jan.-Mar.
138 @ 143 140@ 145
148 @ 153 150@ 155
129 @ 139 129@ 139
125 @ 135 125@ 135
142 @ 152 142@ 152
140 @ 150 133@ 143
127 @ 134 122@ 130
124 @ 131 121@ 128
161 @ 176 158@ 173
157 @ 172 154@ 169
150 @ 160 150@ 160

Apr.-June
110 @ 115
120 @ 125
104 @ 114
100 @ 110
117 @ 127
93 @ 103
95 @ 105
...@ ...
...@ ...
...@ ...
...@ ...

Minneapolis wheat futures
December contract, $ per bu

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http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - November 2, 2010

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