Milling & Baking News - February 7, 2012 - 35

Cash Wheat
HARD WINTER. Premiums on hard red winter wheat in Kansas City were unchanged to 10c a bu lower last week. Spot offers were limited, but mill demand was not urgent. Mills received wheat for application against February contracts. While movement of contracted wheat was not too impressive so early in the month, it was sufﬁcient to keep most pipelines full and mills comfortable. Export bids on hard red winter wheat at the Gulf were firm, advancing 2c a bu from the previous week. Export sales of hard red winter wheat were ahead of the pace required to meet the U.S. Department of Agriculture’s export forecast for 2011-12 at 390 million bus. In Fort Worth, bids on hard red winter wheat were unchanged at 10c over Kansas City March; new crop, 5c under July. Salina truck bids at terminal elevators were 10c under K.C. March; new crop, 40c under July. Hutchinson elevator bids were 6c under K.C. March; new crop, 35c under July. Activity in the market for to-arrive wheat remained light with a wide spread between bids and offers. Some cooperative elevators indicated producer wheat sales remained limited while elevators at other points suggested an increase in farmer selling. Such selling would not be surprising in view of the recent rally in wheat futures prices and forecasts for rain across much of region that may boost producer confidence in new crop prospects. Snow cover was lacking across most of the hard winter wheat region, and railroads had no difficulty placing, loading and shipping wheat rail cars. U.S.D.A. field offices in key hard winter wheat states indicated wheat conditions at the end of January declined from a month earlier in most states but were

well above year-ago ratings with the exceptions of South Dakota and Montana. The Kansas field office rated the state’s crop as 49% good to excellent (compared with 53% at the end December and 27% year ago), 39% fair and 12% poor to very poor. The Texas office rated that state’s wheat at 26% good to excellent (25% a month earlier and 17% a year ago), 36% fair and 38% poor to very poor. Oklahoma wheat was rated 54% good to excellent (63% a month earlier, 21% a year ago), 37% fair and 9% poor to very poor. Nebraska’s crop was rated 65% good to excellent (74% at the end of December, 41% a year ago), 32% fair and 3% poor to very poor. The South Dakota crop was rated 25% good to excellent (41% a month earlier, 67% a year ago), 45% fair and 30% poor to very poor. Montana winter wheat was rated 26% good to excellent (30% a month earlier, 73% last year), 62% fair and 12% poor to very poor. HARD SPRING. Premiums on hard red spring wheat quoted as delivered Chicago/beyond values in relation to the Minneapolis March wheat future were 5@25c a bu higher. At the end of the week, quotes were available only at 13% and 14% proteins. Demand from Pacific Northwest export elevators provided some underlying support. Domestic demand for spring wheat remained constrained by ongoing mill substitution of less expensive hard red winter wheat for spring wheat of equivalent protein to the extent practicable. Such substi-

tution was expected to remain a market feature for the rest of the crop year. The rail freight rate spread between the Minneapolis unload rate and the delivered Chicago/beyond rate remained 15c a bu; the freight rate spread between the Duluth unload rate and the delivered Chicago/beyond rate was 22@24c a bu. SOFT RED. Mill bids on soft red winter wheat were mostly unchanged last week. In Kansas City, No. 1 soft red bids were unchanged at 25c under K.C. March to 55c over. Gulf bids on soft red for February declined 3c, to 70c over Chicago March. St. Louis mill bids held at 30c over Chicago March. Chicago mill bids were unchanged at 20c over Chicago March; new crop, 35c under July. Mill bids in Toledo for nearby were 40c over Chicago March, unchanged; April-May, 40c over May; new crop, 40c over July. Elevator bids were 21c over Chicago March; new crop, 5c over July. Cincinnati nearby mill bids were unchanged at the Chicago March price; new crop, 10c under July. Elevator bids for nearby were at 20c under Chicago March; new crop, 16c under July. Michigan white wheat mill bids for nearby were 15@40c over Chicago March. The Illinois U.S.D.A. ﬁeld ofﬁce rated the state’s winter wheat on Jan. 29 at 75% good to excellent (81% a month earlier and 45% a year ago), 22% fair and 3% poor. North Carolina, the only other soft wheat state updating condition ratings, rated its winter wheat 84% good to excellent, 15% fair and 1% poor. MBN

No. 1 hard spring
Basis Minneapolis March, delivered Chicago\beyond cents per bu Feb. 3 — Change from — Year Premium Jan. 27 Jan. 20 ago Ordinary ... ... ... … 11% ... ... ... … 12% ... ... ... -35 @ -20 13% 85 +5 -35 10 @ 70 13.5% ... ... ... 95 @ 135 14% 130 @ 165 +15 @ +20 -25 @ -25 170 @ 210 14.5% ... ... ... 225 @ 270 15% ... ... ... 320 @ 340 16% ... ... ... … 17% ... ... ... …

Cash wheat
Feb. 3 — Change from — For shipment Bid Jan. 27 Jan. 20 No. 1 Soft White, Track, Portland $ per bu January 6.95 ... ... March 6.95 +.20 +.53 April 6.95 +.20 +.51 No. 1 Hard 11.5%, Track, Portland Basis Kansas City future, $ per bu January 0.70 +.10 +.10 March 0.70 +.02 +.02 April 0.65 ... ... No. 1 Spring 14%, Track, Portland Basis Minneapolis future, $ per bu January 1.60 +.25 +.30 March 1.60 +.25 +.30 April 1.60 +.15 +.30 Year ago … … 8.50 -0.1 0.05 0.05

No. 1 hard winter
Basis Kansas City March, cents per bu Feb. 3 — Change from — Year Premium Jan. 27 Jan. 20 ago Ordinary 45 @ 60 -10 @ -10 -20 @ -20 -52 @ -37 11% 60 @ 75 -3 @ -3 -5 @ -5 -40 @ -25 11.2% 60 @ 75 -3 @ -3 -5 @ -5 -34 @ -19 11.4% 68 @ 83 -7 @ -7 -12 @ -12 -27 @ -12 11.6% 68 @ 83 -7 @ -7 -22 @ -22 -18 @ -3 11.8% 80 @ 95 -10 @ -10 -10 @ -10 -10 @ 5 12% 87 @ 102 -3 @ -3 -14 @ -14 -1 @ 14 12.2% 87 @ 102 -3 @ -3 -14 @ -14 -1 @ 14 12.4% 87 @ 102 -8 @ -8 -14 @ -14 0 @ 15 12.6% 93 @ 108 -5 @ -5 -12 @ -12 15 @ 30 12.8% 95 @ 110 -5 @ -5 -15 @ -15 30 @ 45 13% 100 @ 115 -5 @ -5 -10 @ -10 66 @ 81 13.2% 105 @ 120 -10 @ -10 -10 @ -10 70 @ 85 13.4% 115 @ 130 — — 75 @ 90 13.6% 115 @ 130 — — 80 @ 95 13.8% 120 @ 135 — — 80 @ 95 14% 170 @ 185 — +12 @ +12 85 @ 100
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Exporter bids and offers
For Feb. 3 shipment Bid Offer No. 1 Hard 12%, Track Gulf Basis Kansas City future, cents per bu February +112 March … March +112 March … April +105 May … May +105 May … No. 2 Soft Red, c.i.f. New Orleans Basis Chicago future, cents per bu February +70 March 75 March +70 March 75 April +60 May … May +60 May … Year ago bid

… … … …

Canadian domestic milling wheat
In-store, Thunder Bay, Canadian $ per tonne Western red spring 13.5% Soft white spring Amber durum U.S. $ per bu Western red spring 13.5% Soft white spring Amber durum Feb. 3 352.08 264.93 392.82 9.64 7.25 10.75 Change from Year Jan. 27 ago +2.10 419.64 +0.03 331.06 -13.73 431.10 0.13 0.05 -0.30 11.54 9.10 11.85

+90 +88 +60 +55

March March May May

Milling & Baking News February 7, 2012 / 35

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Ingredient Week

1.8 1.80 1.75
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Milling & Baking News - February 7, 2012

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