Milling & Baking News - June 28, 2011 - 40

Ingredient Week 

Wheat Futures
Prices of wheat futures posted another round of wide declines last week. At the end of trading on Thursday, September wheat futures prices in Kansas City and Minneapolis were down around $1.83 from their respective closes on May 27, and the Chicago September wheat future was down around $1.57. Fundamental and macro-economic factors figured in the wheat market’s weakening. The winter wheat harvest on June 19 was 31% completed compared with 22% a week earlier and 22% as the recent fiveyear average for the date, according to the U.S. Department of Agriculture. The soft winter wheat harvest was nearly completed across the South, made strong progress across the mid-Atlantic states and began to expand in the key Central states. The hard winter wheat harvest proceeded ahead of the average pace and was centered in Kansas. Spring wheat planting on June 19 was 91% completed, and spring wheat emergence was 83% compared with 99% as the recent five-year average for the date. The U.S.D.A. rated the condition of the spring wheat crop in the six key states as 72% good to excellent compared with 84% on the same date a year ago. The decline in wheat futures was

mirrored by weakening markets for corn and the soy complex. The corn crop finally was planted, and seeding of soybeans was nearly completed. Weather patterns turned more favorable. Equity markets weakened on domestic and global economic concerns. The value of the dollar advanced, which exerted pressure on commodity prices generally. The International Energy Agency released 60 million barrels of oil from governments’ strategic reserves (30 million barrels by the United States), which pressured energy markets and through them agricultural commodities. Russia offered wheat, and the likelihood that nation will be a large exporter of wheat in 2011-12 lessened prospective pressure on the U.S. supply. Net export sales of U.S. wheat during the week ended June 17 totaled 661,300 tonnes, which was toward the upper end of trade estimates. MBN

Millfeed
Millfeed prices continued to slide last week on lower corn futures, heavy pre-holiday flour grind and only fair demand. Markets were unsettled as corn prices fluctuated, but both buyers and sellers remained wary amid the bearish sentiments in the markets.

Spot millfeed prices dropped about $5 a ton in most regions except in the Pacific Northwest, which fell $10, and in the Southwest, which plunged more than $20. Nearby millfeed supplies were ample in most areas as many mills ran much of the weekend prior to taking added downtime for the Independence Day holiday. Scattered unplanned downtime did little to offset the heavy flow of millfeed. At the same time, demand appeared to stall as buyers stood aside during what at times appeared to be a freefall in corn futures. But nearby trading continued as users covered holiday needs. Interest in deferred periods picked up as millfeed prices dropped and more flour was booked through March 2012. Deferred prices were unchanged to $11 and fell mostly into the $5@7 lower range. Declines were limited in the Southeast as demand from catfish feeders and for supplemental livestock feed continued. Wheat germ prices were unchanged. Millfeed was $138 a ton Kansas City and $152 Minneapolis on a rail basis compared with corn at $237 a ton and sorghum at $207 a ton, both K.C. Corn gluten feed held at $185 a ton, distillers’ dried grain was $205 a ton and dehydrated alfalfa was $225 a ton, all K.C. MBN

Wheat futures
$ per bu; change in cents per bu June 24 Kansas City July September December March Chicago July September December March Minneapolis July September December March 7.48½ 7.67¼ 7.93 8.07¼ 6.35¾ 6.61 7.05½ 7.37¼ 8.26 8.18½ 8.23¾ 8.36¾ — Change from — June 17 June 10 -56c -55c -53c -52¾c -36½c -47c -47¾c -53c -119½c -118¾c -115¾c -114½c -123½c -124¾c -120¼c -126¼c Week’s High Low 8.14 8.32¼ 8.56¾ 8.69½ 6.79½ 7.13 7.62¼ 7.99½ 9.16 8.94¼ 8.96¼ 9.07¼ 7.40 7.58½ 7.83½ 7.97½ 6.06 6.41½ 6.90½ 7.29¾ 7.30½ 8.18½ 8.21¾ 8.34¼ Year ago 4.83¾ 4.94¾ 5.10¾ 5.27 4.56¼ 4.71 4.97½ 5.25¾ 5.12¼ 5.23¾ 5.39¼ 5.57¼ High 10.09¾ 10.20¾ 10.34 10.14¼ 9.50¾ 9.71½ 9.86¾ 9.54¾ 11.20 10.55¼ 10.55¼ 10.55¾ Season’s Low (02-09-11) (02-09-11) (02-09-11) (05-26-11) (02-09-11) (02-09-11) (02-09-11) (05-26-11) (06-07-11) (05-26-11) (05-26-11) (05-26-11) 5.27¼ 5.42 5.59½ 5.03 5.40 5.60½ 4.72¾ 5.05 5.53¼ 5.65 5.14 5.32¼ (06-11-10) (06-09-10) (06-11-10) (06-11-10) (06-11-10) (06-09-10) (06-08-10) (06-11-10) (06-11-10) (06-11-10) (06-10-10) (06-09-10)

Kansas City wheat futures
July contract, $ per bu
10.50 8.50 6.50 4.50 J S D Previous Year M Current Year

WChicago wheat k' h ( t

b ) futures

30 5
$10.25 $8.75 $7.25 $5.75

-71¼c -174c -63¼c -130¼c -61c -124¼c -58¾c -121¾c

July contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted Spot Kansas City 138 @ 143 Southwest, f.o.b. truck 158 @ 168 Minneapolis 152 @ 162 Upper Midwest, f.o.b. truck 148 @ 158 Chicago West 165 @ 175 Central states, f.o.b truck 153 @ 163 Buffalo 132 @ 142 Southeast 138 @ 145 N. & S. California 174 @ 194 Los Angeles, f.o.b. truck 170 @ 190 Paciﬁc Northwest 160 @ 170 Upper Midwest, sacked 300 Wheat germ 260 @ 300 July 137@ 142 157@ 162 154@ 164 150@ 160 167@ 177 153@ 163 127@ 137 138@ 145 166@ 181 162@ 177 160@ 170 — Change from — Year June 17 June 10 ago July-Sept. Oct.-Dec. -23 @ -23 -33@ -33 53 @ 58 137 @ 142 147@ 152 -8 @ -8 -18@ -21 65 @ 70 157 @ 162 167@ 172 -6 @ -2 -15@ -12 64 @ 72 156 @ 166 152@ 162 -6 @ -2 -15@ -12 60 @ 68 152 @ 162 148@ 158 -6 @ -2 -15@ -12 77 @ 85 169 @ 179 165@ 175 -4 @ -2 -10@ -5 68 @ 73 155 @ 165 153@ 163 -8 @ -8 -11@ -8 60 @ 68 125 @ 135 133@ 143 -4 @ -5 -10@ -11 56 @ 62 138 @ 145 138@ 145 -13 @ -13 -18@ -18 102 @ 112 161 @ 176 159@ 174 -13 @ -13 -18@ -18 98 @ 108 157 @ 172 155@ 170 -10 @ -10 -15@ -10 85 @ 95 160 @ 170 160@ 170 Jan.-Mar. 150 @ 155 170 @ 175 154 @ 164 150 @ 160 167 @ 177 150 @ 160 130 @ 140 …@ … …@ … …@ … …@ …
J S D Previous Year M Current Year

$4.25

Minneapolis wheat futures
July contract, $ per bu
$12.50 $10.50 $8.50 $6.50 $4.50 J S D
Previous Year

M
Current Year

40 / June 28, 2011 Milling & Baking News

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Milling & Baking News - June 28, 2011

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