Milling & Baking News - January 25, 2011 - 35

Ingredient Week 

Wheat Futures
Prices of wheat futures set new season's
highs last week in Kansas City, Minneapolis and Chicago with the exception of the
Chicago March contract. Markets weighed
bullish and bearish inputs, and bullish influences carried the day.
Supportive features revolved around
concerns about supply during the remainder of the crop year. World food prices
were on the rise spreading fears of food
riots in certain countries. Ideas were North
African nations may have to increase grain
and other food imports to ensure adequate
supply for their populations. Algeria during the previous weekend purchased
200,000 tonnes of optional-origin durum
and 400,000 tonnes of Canadian wheat,
and Tunisia bought 100,000 tonnes of durum against a tender for 25,000 tonnes.
Additionally, Jordan last week bought
150,000 tonnes of U.S. hard winter wheat
against a tender for 100,000 tonnes, and
the U.S. Department of Agriculture confirmed a recent sale of U.S. high-protein
hard winter wheat to Turkey.
The U.S.D.A. indicated net export sales
of U.S. wheat for 2010-11 during the week
ended Jan. 13 totaled 1,054,300 tonnes, a fivemonth high and up from a reported 147,300
tonnes during the previous week. Of note
were purchases by Turkey (172,800 tonnes),

Nigeria (108,700 tonnes), Vietnam (59,000
tonnes) and Saudi Arabia (52,300 tonnes).
The weekly sales exceeded trade estimates,
the highest of which was 900,000 tonnes.
Wheat futures prices also received a
boost from a declining U.S. dollar index.
Tempering wheat market strength
was an improving outlook for 2011-12.
Winter storms brought moisture to U.S.
winter wheat regions, and expectations
were world wheat production will rise.
In its initial forecast for the 2011-12
marketing year, the International Grains
Council on Jan. 20 forecast world wheat
production in the coming year at 670
million tonnes, up from an estimated 647
million tonnes in the current year. I.G.C.
stated: "After last year's sharp drop, the
global wheat area is projected to rise
about 3%, boosted by higher prices and
a return to more normal abandonment
rates, especially in Russia." MBN

Millfeed
Widespread indications of waning demand pressured spot millfeed prices last
week while volatile corn futures swayed
deferred values in thin trading.
Spot prices sank from $7 to as much as
$20 a ton with the exceptions of the Upper
Midwest, which rose $3, and the West coast,
which was unchanged. Most pressure was

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu

Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

Season's

- Change from -
Jan. 14 Jan. 7

Week's
High
Low

Year
ago

9.00
9.10
9.14¾
9.23

+40c
+39¼c
+35½c
+31c

+53¾c
+53¾c
+51½c
+50½c

9.08¼
9.18¾
9.23½
9.31¾

8.58½
8.69¾
8.78¼
8.92

5.02
5.14
5.25¾
5.36¾

High
9.08¼
9.18¾
9.23½
9.31¾

(01-21-11)
(01-21-11)
(01-21-11)
(01-21-11)

Low
5.03
5.15¼
5.27¼
5.42

(06-11-10)
(06-11-10)
(06-11-10)
(06-09-10)

8.24½
8.50¼
8.66¾
8.81¾

+51¼c
+47¼c
+39c
+35c

+50½c
+48½c
+45¾c
+43¾c

8.30
8.56
8.73½
8.88

7.73½
8.03¾
8.29¾
8.50

4.98½
5.12¼
5.24
5.39¼

8.64¼
8.56
8.73½
8.88

(08-06-10)
(01-21-11)
(01-21-11)
(01-21-11)

5.05
5.21
5.40
5.60½

(06-11-10)
(06-11-10)
(06-11-10)
(06-09-10)

9.37¼
9.43
9.45½
9.39

+47c
+43¾c
+40c
+38c

+66½c
+62¾c
+62c
+61¼c

9.44½
9.52¼
9.55¾
9.49¼

8.90
8.99¼
9.05¼
9.00¾

5.12½
5.24
5.36
5.47¼

9.44½
9.52¼
9.55¾
9.49¼

(01-21-11)
(01-21-11)
(01-21-11)
(01-21-11)

5.32¼
5.43¼
5.53¼
5.65

(06-09-10)
(06-09-10)
(06-11-10)
(06-11-10)

- Change from - Year
Jan. 14
Jan. 7
ago
-18 @ -18 -16@ -18 107 @ 112
-20 @ -20 -15@ -20 127 @ 132
-5 @ -5
-5@ -5
92 @ 97
-5 @ -5
-5@ -5
88 @ 93
-5 @ -5
-5@ -5 105 @ 110
-20 @ -17 -10@ -12 105 @ 115
-18 @ -13 -23@ -18 87 @ 95
-7 @ -10 -2@ -5
85 @ 90
-
+3@ +3 123 @ 133
-
+3@ +3 119 @ 129
-
-
125 @ 135

Mar.
137 @ 143
150 @ 155
139 @ 149
135 @ 145
152 @ 162
138 @ 146
118 @ 128
125 @ 132
171 @ 181
167 @ 177
155 @ 165

Apr.-June
114@ 120
125@ 130
126@ 136
122@ 132
139@ 149
115@ 125
105@ 115
110@ 117
161@ 171
157@ 167
140@ 150

Jan. 21

in the Southwest and Central states, with
the latter falling sharply at week's end.
Widespread cancellations and requests for
delayed shipments by feed mixers in most
regions east of the Rocky Mountains were
primary pressuring factors. Traders indicated demand was lighter than expected,
plus millfeed in some areas was priced out
of feed formulations despite strong prices
of corn and other ingredients. The result
was surplus nearby material. Sellers in cases slashed prices to keep supplies moving.
Upper Midwest prices firmed on uneven
flour grind and "decent" demand.
February and March were broken out
as separate delivery periods with February at about a $10 discount to spot and
March at a $10 discount to February in
most areas except the West coast. Even
wider discounts for April-June to March
in several areas failed to generate much
trading. Deferred prices ended mixed,
mainly swayed by volatile corn futures
that ended the week higher.
Wheat germ prices were unchanged.
Bulk middlings were $149 a ton in K.C.
and $155 a ton in Minneapolis compared
to corn at $226 a ton and sorghum at $206,
both K.C. Corn gluten feed held at $170 a
ton, distillers' dried grain was steady at
$190 a ton, and dehydrated alfalfa was
unchanged at $205 a ton, all K.C. MBN

Chicago wheat futures
March contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot prices are nominal.
Spot
Kansas City
149 @ 155
Southwest, f.o.b. truck
160 @ 170
Minneapolis
159 @ 166
Upper Midwest, f.o.b. truck 155 @ 162
Chicago West
172 @ 179
Central states, f.o.b truck 142 @ 150
Buffalo
138 @ 148
Southeast
135 @ 145
N. & S. California
170 @ 180
Los Angeles, f.o.b. truck 166 @ 176
Pacific Northwest
155 @ 165
Upper Midwest, sacked
270
Wheat germ
280 @ 310

Feb.
144@ 150
160@ 165
149@ 159
145@ 155
162@ 172
140@ 148
127@ 137
133@ 140
171@ 181
167@ 177
155@ 165

36 / January 25, 2011 Milling & Baking News

July-Sept.
116@ 122
125@ 130
Minneapolis wheat futures
127@ 137 March contract, $ per bu
123@ 133
140@ 150
115@ 125
100@ 110
...@ ...
...@ ...
...@ ...
135@ 145

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Milling & Baking News - January 25, 2011

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