Milling & Baking News - July 24, 2012 - 48

Ingredient Week 

Wheat Futures
The astounding rally in wheat futures prices continued last week with the drought threat to the fall crops in the United States the principal price driver. Also providing support were lowered expectations for the wheat crop in the former Soviet Union and wheat quality issues in other parts of Europe, which may increase demand for U.S. wheat during 2012-13. From their respective June 1 closes, September wheat futures by July 19 advanced $2.85 a bu, or 44%, in Kansas City, $3.04 a bu, or 48%, in Chicago, and $2.81 a bu, or 38%, in Minneapolis, with another 2@13c added Friday. The drought was said to be the most widespread in the United States since 1956. Temperatures above 100 degrees were commonplace across much of the country with no significant relief in sight. Yield potential for corn and soybeans deteriorated by the day. Wheat was likely to escape the worst predations of the drought. The U.S. Department of Agriculture indicated the winter wheat harvest was 80% completed by July 15 and was racing to an early conclusion. The spring wheat harvest already was under way in the northern Plains with the South Dakota harvest 12% completed at last week’s outset.

Combining was 1% completed in both Minnesota and North Dakota. Spring wheat conditions have held up remarkably well even as hot-and-dry weather was beginning to exact a toll. The U.S.D.A. indicated the condition of spring wheat other than durum in the six key states on July 15 was 65% good to excellent compared with 66% a week earlier and 73% a year ago. The spring wheat harvest was expected to proceed rapidly in the next several days amid hopes combines will successfully outrace the expanding drought. Farmer wheat selling increased in the past couple of weeks. It was suggested more than 60% of the 2012 hard red winter wheat crop has been sold to date. The U.S.D.A. indicated net export sales of U.S. wheat during the week ended July 12 totaled 589,200 tonnes, up 89% from the previous week and up 24% from the prior four-week average. MBN

Millfeed
Millfeed prices skyrocketed in most regions and advanced in all areas last week as the widening U.S. drought sent corn and soybean futures to new record highs and continued to spur feed demand to supplement burned-up grass. Millfeed gained ground but was still more affordable than other feed ingredients in most

formulations. Buyers tended to fill needs only when necessary because of the steep price run-up. Prices were seen as still having upside potential because weather conditions were not expected to moderate any time soon. Although prices were nominal in some areas, with nearby values even unquoted by some traders due to thin volume, millfeed prices surged more than $40 a ton from a week earlier in the Southwest and Northeast, with Southwest trucks soaring $50. Gains of $30 a ton or more were recorded in the Upper Midwest, Central states and Southeast, while the Pacific Northwest was up $25 and California was up about $10. Gains spanned nearby through December delivery periods in most cases. Flour grind varied widely from seven days to about five, with heat-related mechanical interruptions and fumigations curtailing operations at individual plants. Wheat germ was unchanged. Millfeed was $220 a ton in Kansas City and $224 in Minneapolis, on a rail basis, compared with corn at $301 a ton and sorghum at $284 a ton, both K.C. Corn gluten feed was $20 higher at $255 a ton, distillers’ dried grain was up $35 at $305 a ton, and dehydrated alfalfa was up $15 at $330 a ton, all K.C. MBN

Wheat futures
$ per bu; change in cents per bu July 20 Kansas City September December March May Chicago September December March May Minneapolis September December March May 9.41 9.54 9.51 9.45 9.43¼ 9.48¼ 9.25 8.95½ 10.31½ 10.28¼ 10.28¾ 10.19¼ — Change from — July 13 July 6 +90c +132½c +83c +123c +71c +108¾c +62c +99¾c +95½c +137c +85¾c +126½c +53c +92¼c +29¼c +66¼c +82c +126c +86½c +121½c +82¼c +115¾c +77¾c +101¼c Week’s High Low 9.42½ 9.57¼ 9.54½ 9.54¾ 9.44¾ 9.51½ 9.36¾ 9.14¼ 10.35 10.31¼ 10.31¾ 10.18¾ 8.57¾ 8.77 8.82 8.99¼ 8.56¼ 8.71 8.80 8.82 9.53½ 9.48¼ 9.55¼ 9.60 Year ago 7.80 8.04¼ 8.16¾ 8.21½ 6.92¼ 7.31 7.63½ 7.81½ 8.38½ 8.41¾ 8.51¾ 8.55½ High 9.84 9.92¼ 9.86½ 10.01½ 9.63¼ 9.77¼ 9.82 9.25½ 10.35 10.31¼ 10.31¾ 10.56 Season’s Low (05-26-11) (05-26-11) (05-25-11) (02-09-11) (05-26-11) (05-26-11) (05-26-11) (02-09-11) (07-20-12) (07-20-12) (07-20-12) (05-26-11) 6.25½ 6.50 6.64½ 5.15¼ 6.06¾ 6.29½ 6.52 5.21 7.09½ 7.34 7.43 5.43¼ (05-14-12) (05-11-12) (05-14-12) (06-11-10) (05-14-12) (05-14-12) (05-14-12) (06-11-10) (10-05-10) (05-14-12) (05-14-12) (06-09-10)
J

Kansas City wheat futures
September contract, $ per bu
10.50 8.50 6.50 4.50 O J
Previous Year

A
Current Year

Chicago wheat futures
September contract, $ per bu
$10.15 $9.15 $8.15 $7.15 $6.15 $5.15

Bulk middlings
$ per ton, delivered rail unless noted Spot 220 @ 230 260 @ 270 220 @ 230 224 @ 234 237 @ 247 210 @ 225 175 @ 185 190 @ 200 196 @ 216 192 @ 212 205 @ 230 265 280 @ 300 July 220@ 230 260@ 270 224@ 234 220@ 230 237@ 247 210@ 225 175@ 185 190@ 200 196@ 216 192@ 212 205@ 230 — Change from — Year July 13 July 6 ago Aug.-Sept. Oct.-Dec. +42 @ +47 +55@ +58 187 @ 192 230 @ 240 230@ 240 +50 @ +55 +70@ +75 200 @ 205 265 @ 275 265@ 275 +30 @ +30 +45@ +45 179 @ 186 219 @ 229 219@ 229 +30 @ +30 +45@ +45 175 @ 182 215 @ 225 215@ 225 +30 @ +30 +45@ +45 192 @ 199 232 @ 242 232@ 242 +30 @ +35 +42@ +50 175 @ 182 210 @ 225 215@ 230 +47 @ +47 +45@ +45 143 @ 153 170 @ 180 175@ 185 +35 @ +40 +47@ +51 152 @ 160 190 @ 200 190@ 200 +7 @ +7 +20@ +20 171 @ 186 194 @ 214 193@ 213 +7 @ +7 +20@ +20 167 @ 182 190 @ 210 189@ 209 +25 @ +40 +25@ +40 165 @ 170 205 @ 230 205@ 230
J O J
Previous Year

A
Current Year

Kansas City Southwest, f.o.b. truck Minneapolis Upper Midwest, f.o.b. truck Chicago West Central states, f.o.b truck Buffalo Southeast N. & S. California Los Angeles, f.o.b. truck Paciﬁc Northwest Upper Midwest, sacked Wheat germ

Minneapolis wheat futures
September contract, $ per bu
$12.00 $9.50 $7.00 $4.50 J O J
Previous Year

A
Current Year

48 / July 24, 2012 Milling & Baking News

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Milling & Baking News - July 24, 2012

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