Milling & Baking News - June 26, 2012 - 44

Ingredient Week 

Wheat Futures
Sensational gains were scored in wheat futures last week, more than wiping away wide declines sustained a week earlier. Rallies in corn futures and in the soy complex exerted an upward tug on wheat prices as did heavier-thanexpected export sales. U.S. and world weather was the principal price driver. Hot and increasingly dry weather was thought to be exacting a toll on prospective U.S. corn and soybean yields. As the historically early winter wheat harvest raced ahead, markets increasingly shifted their attention to the fall crops, which were in dire need of moisture as they approached critical stages of growth. Dryness also was reducing Russia’s wheat crop prospects. The U.S. Department of Agriculture on June 12 reduced its forecast for Russian wheat production to 53 million tonnes, down 3 million tonnes from the May projection and down from 56.23 million tonnes in 2011. Last week, Russian sources lowered their forecasts for the nation’s wheat crop to 50 million tonnes. The U.S.D.A. indicated the U.S. winter wheat harvest was 48% completed by June 17 compared with 16% as the recent five-year average for the date. Net export sales of U.S. wheat during the week ended June 14 totaled

842,000 tonnes, which greatly exceeded pre-report trade estimates ranging from 300,000 tonnes to 500,000. Notable was confirmation of a sale of 114,520 tonnes of wheat to China. Also, 221,500 tonnes were sold to “unknown destinations,” which some believed also may be China. Chinese government indications were China imported 556,603 tonnes of wheat in May, including 115,500 tonnes from the United States, compared with 10,308 tonnes in May 2011. China’s JanuaryMay wheat imports aggregated 1,907,997 tonnes, more than six times the total for the same five months in 2011. Non-irrigated wheat across the North China Plain was thought to have lost some yield potential because of dryness. But the dry weather there may have an even greater effect on the nation’s fall crops. The U.S.D.A. on June 12 forecast China’s wheat crop at a record 120 million tonnes, unchanged from May and up 2.6 million tonnes from 2011. MBN

Millfeed
Millfeed values were mixed last week with a bias toward lower prices in Central states and East, which were still dealing with increased supply, and a bias toward steady-to-firmer levels west of the Mississippi river, reflecting

the soaring weather market in corn and soy complex futures. Demand weakened in the Central states and East, where hot weather caused animals to eat less feed. Spot quotes were nominal in some areas as most interest was for balanceJune through September. July-September quotes advanced about $10 a ton in the Southwest, Upper Midwest, Southeast and Northeast, although nearby quotes dropped $8 in the Southwest. Central states and Northeast nearby sank $10 a ton even after the prior week’s sharp losses. West coast markets were mostly steady. Some buyers substituted perceived bargains last week to fill immediate needs and deferred earlier contracted purchases. Earlier concerns about flour grind surrounding the coming July 4 midweek holiday dissipated as attention moved to price action in corn futures and ample supplies in some markets. Mill grind was active at 5½ to 6½ days last week. Wheat germ was unchanged. Millfeed was $132 a ton in Kansas City and $162 in Minneapolis, on a rail basis, compared with corn at $225 a ton and sorghum at $193 a ton, both K.C. Corn gluten feed held at $185 a ton, distillers’ dried grain was up $5 at $235 a ton, and dehydrated alfalfa was steady at $310 a ton, all K.C. MBN

Wheat futures
$ per bu; change in cents per bu June 22 Kansas City July September December March Chicago July September December March Minneapolis July September December March 6.86 7.00½ 7.22 7.34 6.73¼ 6.87½ 7.06¾ 7.23¾ 8.59 7.78½ 7.83¼ 7.89 — Change from — June 15 June 8 +56c +55c +54½c +52c +63¾c +60¾c +55½c +52¾c +71½c +38c +38c +36¼c +30c +28½c +26c +22c +43c +39½c +34c +29c +89¾c +18c +16½c +17¾c Week’s High Low 7.02½ 7.18 7.39 7.51¾ 6.84¾ 7.00 7.21 7.37¼ 8.86½ 7.97 8.02½ 8.07½ 6.35 6.50¼ 6.72¾ 6.86½ 6.12 6.29½ 6.51½ 6.73 7.87½ 7.40 7.46½ 7.52 Year ago 7.48½ 7.67¼ 7.93 8.07¼ 6.35¾ 6.61 7.05½ 7.37¼ 8.26 8.18½ 8.23¾ 8.36¾ High 9.97½ 9.84 9.92¼ 9.86½ 9.57½ 9.63¼ 9.77¼ 9.82 10.55 9.90¼ 9.99¾ 9.88 Season’s Low (05-26-11) (05-26-11) (05-26-11) (05-25-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (05-27-11) 5.90 6.25½ 6.50 6.64½ 5.92¼ 6.06¾ 6.29½ 6.52 6.74¼ 7.09½ 7.34 7.43 (03-31-10) (05-14-12) (05-11-12) (05-14-12) (05-11-12) (05-14-12) (05-14-12) (05-14-12) (07-15-10) (10-05-10) (05-14-12) (05-14-12)
J

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

M
Current Year

Chicago wheat futures
July contract, $ per bu
$9.15 $8.15 $7.15 $6.15 $5.15

Bulk middlings
$ per ton, delivered rail unless noted N=Nominal Spot Kansas City 132 @ 140 Southwest, f.o.b. truck 165 @ 170 Minneapolis 162 @ 172 Upper Midwest, f.o.b. truck 158 @ 168 Chicago West 175 @ 185 Central states, f.o.b truck 135 @ 145 Buffalo 110 @ 120 Southeast 128 @ 136 N. & S. California 176 @ 196 Los Angeles, f.o.b. truck 172 @ 192 Paciﬁc Northwest 180 @ 190 Upper Midwest, sacked 265 Wheat germ 280 @ 300 June 132@ 140 165@ 170 162@ 172 158@ 168 175@ 185 135@ 145 110@ 120 128@ 136 176@ 196 172@ 192 180@ 190 — Change from — Year June 15 June 8 ago -8 @ -5 +1@ +3 137 @ 142 — +9@ +9 157 @ 162 +3 @ +8 -5@ -2 154 @ 164 +3 @ +8 -5@ -2 150 @ 160 +3 @ +8 -5@ -2 167 @ 177 -10 @ -15 -30@ -30 153 @ 163 -10 @ -10 -25@ -25 127 @ 137 +3 @ +1 -7@ -9 138 @ 145 +8 @ +3 +7@ +2 166 @ 181 +8 @ +3 +7@ +2 162 @ 177 — — 160 @ 170

$4.15

July July-Sept. 135 @ 141 137@ 143 165 @ 170 165@ 170 159 @ 169 154@ 164 155 @ 165 150@ 160 172 @ 182 167@ 177 135 @ 145 135@ 145 110 @ 120 115@ 125 126 @ 134 124@ 132 158 @ 183 155@ 180 154 @ 179 151@ 176 180 @ 190 180@ 190

Oct.-Dec. 142 @ 147 170 @ 175 …@ … …@ … …@ … …@ … …@ … …@ … …@ … …@ … …@ …

J

S

D
Previous Year

M
Current Year

Minneapolis wheat futures
July contract, $ per bu
$12.00 $9.50 $7.00 $4.50 J S D
Previous Year

M
Current Year

44 / June 26, 2012 Milling & Baking News

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - June 26, 2012

Table of Contents for the Digital Edition of Milling & Baking News - June 26, 2012
