Milling & Baking News - March 22, 2011 - 50

Ingredient Week 

Wheat Futures
Dramatic price swings wracked wheat futures markets last week. The whipsaw action mirrored developments in the other agricultural and commodity markets. Wheat supply-and-demand fundamentals struggled for attention amid deep uncertainties generated by the devastation of sections of Japan from the recent earthquake and tsunami, frustrating efforts to contain a possible nuclear disaster in that country and ongoing turmoil in the Middle East. The value of the U.S. dollar declined last week, which provided fuel for a lateweek bounce in agricultural and other futures prices. Before the market reversed gears, prices continued their month-long steep downtrend. U.S. equity markets also were on the rise toward the week’s end after taking a shellacking in the previous couple of weeks and especially in the wake of the Japanese earthquake. Among wheat market fundamental features eyed by traders as the week wore on were indications of continued stress on the U.S. hard winter wheat crop. Western areas of the hard winter wheat belt remained extremely dry with little signiﬁcant precipitation in nearterm forecasts. April forecasts held out the hope of wetter weather patterns in the dry areas, but the crop will require

a lot of spring moisture to manage even a weak recovery from a difﬁcult winter. The U.S. Department of Agriculture indicated net sales of U.S. export wheat during the week ended March 12 totaled 663,700 tonnes for 2010-11 and 195,100 tonnes for 2011-12 with the aggregates exceeding trade expectations. The Japanese Ministry of Agriculture, Forestry and Fisheries continued to purchase wheat according to its weekly tender program, which the trade found somewhat reassuring. The Soft Wheat Division of the North American Millers’ Association meeting at Marco Island, Fla., projected soft red winter wheat production in 2011 at 388,364,000 bus, up 150,560,000 bus, or 63%, from 237,804,000 bus last year but down 15,620,000 bus, or 4%, from 403,984,000 bus in 2009. The recent ﬁveyear average soft red winter wheat outturn was 399 million bus. MBN

Millfeed
Millfeed prices ended mixed last week with early pressure from sharp losses in corn futures prices but support from lighter-than-expected ﬂour grind. Nearby prices dropped about $5 a ton in the Southwest, gained about $5 in the Central states and Southeast, rose about $3 in the Upper Midwest and California

and jumped $10@15 in the Northeast. Deferred values were up $5 to down $3. The market was unsettled as buyers eyed losses in corn prices through midweek of more than 10% since early March and expected to buy millfeed lower. But daily limit gains in corn futures last Thursday, representative of recent high volatility, gave sellers conﬁdence to keep prices ﬁrm. Tight nearby supplies in several regions, especially the Central states, supported nearby prices as buyers competed for limited supply. Millfeed shipments into the Central states from surrounding areas also supported values in those regions, notably in the Northeast where supplies were short at week’s end. It was noted even with the early decline in corn prices, millfeed values in relation to corn still were below their average. Traders were surprised at the lack of buying for summer delivery given the wide discount compared with March values, although more interest was shown late as prices rebounded. Wheat germ prices were unchanged. Bulk middlings were $152 a ton in Kansas City and $160 a ton in Minneapolis compared to corn at $237 a ton and sorghum at $216, both K.C. Corn gluten feed was $5 higher at $190 a ton, distillers’ dried grain was up $12 at $207 a ton, and dehydrated alfalfa was steady at $205 a ton, all K.C. MBN

Wheat futures
$ per bu; change in cents per bu — Change from — March 18 March 11 March 4 Kansas City May July September December Chicago May July September December Minneapolis May July September December 8.45 8.55¾ 8.70¼ 8.89 7.23 7.58½ 7.97¼ 8.26¾ 8.67½ 8.76¼ 8.82¼ 8.93 +22c +22c +21½c +22¼c -83½c -81c -71¾c -64½c Week’s High Low 8.79¾ 8.91¼ 9.11 9.18¼ 7.84 8.23 8.51¼ 8.67¾ 9.00¾ 9.06½ 9.16 9.22¼ 7.65 7.75 7.90¾ 8.09¾ 6.56 6.91 7.29¼ 7.56¾ 7.97¼ 8.06½ 8.10½ 8.20¾ Year ago 4.92 5.03 5.15 5.32½ 4.83¾ 4.96½ 5.11½ 5.38 5.09¼ 5.20¼ 5.32 5.49¾ High 10.01½ 10.09¾ 10.20¾ 10.34 9.25½ 9.50¾ 9.71½ 9.86¾ 10.48 10.54¾ 10.51½ 10.51 Season’s Low (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-14-11) (02-14-11) (02-14-11) (02-14-11) 5.15¼ 5.27¼ 5.42 5.59½ 5.21 5.40 5.60½ 4.72¾ 5.43¼ 5.53¼ 5.65 5.14 (06-11-10) (06-11-10) (06-09-10) (06-11-10) (06-11-10) (06-11-10) (06-09-10) (06-08-10) (06-09-10) (06-11-10) (06-11-10) (06-10-10)
M

Kansas City wheat futures
May contract, $ per bu
10.00 8.00 6.00 4.00 J S Previous Year D Current Year

+4¼c -109¼c +7¾c -101½c +9½c -88¾c +14c -76¼c +9c +9½c +10¼c +16c -97¾c -93½c -83½c -75½c

Chicago wheat futures
May contract, $ per bu
$9.25 $8.25 $7.25

Bulk middlings
$ per ton, delivered rail unless noted Spot Kansas City 152 @ 157 Southwest, f.o.b. truck 180 @ 190 Minneapolis 164 @ 169 Upper Midwest, f.o.b. truck 160 @ 165 Chicago West 177 @ 182 Central states, f.o.b truck 160 @ 165 Buffalo 155 @ 165 Southeast 135 @ 145 N. & S. California 178 @ 188 Los Angeles, f.o.b. truck 174 @ 184 Paciﬁc Northwest 155 @ 165 Upper Midwest, sacked 280 Wheat germ 280 @ 300 March 140@ 145 170@ 175 162@ 167 158@ 163 175@ 180 155@ 160 150@ 160 130@ 140 176@ 186 172@ 182 155@ 165 — Change from — Year March 11 March 4 ago -8 @ -8 -10@ -12 70 @ 75 -3 @ -3 -5@ -5 87 @ 92 +3 @ +1 +8@ +8 73 @ 78 +3 @ +1 +8@ +8 69 @ 74 +3 @ +1 +8@ +8 86 @ 91 +5 @ +2 +5@ +5 85 @ 90 +10 @ +10 +10@ +10 69 @ 75 +4 @ +6 +3@ +5 70 @ 75 +2 @ +2 -2@ -2 109 @ 124 +2 @ +2 -2@ -2 105 @ 120 — — 120 @ 130 April April-June 128 @ 133 122@ 127 143 @ 148 137@ 142 139 @ 144 134@ 139 135 @ 140 130@ 135 152 @ 157 147@ 152 130 @ 140 125@ 135 125 @ 135 115@ 125 124 @ 134 120@ 130 173 @ 183 165@ 175 169 @ 179 161@ 171 150 @ 160 145@ 155 July-Sept. 122 @ 127 137 @ 142 136 @ 141 132 @ 137 149 @ 154 120 @ 130 105 @ 115 …@ … …@ … …@ … 140 @ 150

$6.25 $5.25 $4.25 M J S Previous Year D Current Year

Minneapolis wheat futures
May contract, $ per bu
$10.50 $8.50 $6.50 $4.50 M J S Previous Year D Current Year

50 / March 22, 2011 Milling & Baking News

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Milling & Baking News - March 22, 2011

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