Milling & Baking News - December 25, 2012 - 36

Ingredient Week 

Wheat Futures
Wheat futures prices continued to slump last week after having recently broken below ranges that had prevailed since mid-July. The bearish tilt seemed unaffected by indications of recent heavy foreign purchases of U.S. wheat. Weakening corn and soybean futures markets helped pave the way lower for wheat, as did a winter storm that brought moisture to the drought-afflicted Plains. The U.S. Department of Agriculture indicated net export sales of U.S. wheat during the week ended Dec. 13 totaled 651,000 tonnes, up 26% from the previous week and up 46% from the prior four-week average. The export sales total exceeded pre-report trade estimates. Declining wheat prices in the United States made U.S. wheat increasingly competitive in some key foreign markets. Egypt, the world’s largest wheat importer, bought U.S. wheat last week. The General Authority for Supply Commodities, the Egyptian government’s grain buyer, indicated it purchased 180,000 tonnes of U.S. soft red winter wheat for shipment in February. No wheat was purchased from other nations in the GASC tender. And the U.S.D.A.’s 24-hour reporting service confirmed exporters sold 110,000 tonnes of U.S. hard

red winter wheat to Egypt for shipment this marketing year. Corn and soybean futures prices tumbled. China canceled purchases of 840,000 tonnes of U.S. soybeans, a blow that sent soybean futures reeling, which, in turn, exerted a sharp downward tug on the other grain and oilseed markets. A winter storm rolled across the winter wheat states laying a blanket of snow across the hard winter wheat belt north of Oklahoma and extending across Wisconsin, most of Missouri and northern areas in Illinois and Michigan. The Plains states remained in dire need of additional moisture, but forecasts called for a more active weather pattern that may bring additional precipitation in the next few weeks. Farmer selling of wheat was light across the country. Producers earlier sold most of their 2012 crop and held back from liquidating the remainder largely because of the slump in prices and uncertainty over 2013 crop prospects. MBN

Millfeed
Nearby millfeed prices surged last week in several markets as supplies tightened and buyers scrambled to cover last-minute needs before back-to-back holiday weeks, although volatility was evident late in the week.

Bids and offers widened in many markets as price definition blurred and trading slowed. Deferred values trended lower in sync with large declines in grain and soybean futures. The main topic was flour grind during the Christmas and New Year’s weeks. Most traders assumed supplies would remain tight as mills took as much as four days of downtime the first holiday week. They expected mills to run closer to five days during New Year’s week. Market participants said Tuesday holidays were especially likely to produce lengthy cuts in grind, although some mills planned to run both weekends and take only two-day holiday breaks. Traders in Northeast and Central states said that amid confusion about holiday run times, some feed demand had emerged as winter weather settled in. Most traders said they expected nearby values to plummet in January as grind returns to normal and supplies increase. Millfeed was $200 a ton in Kansas City and $249 in Minneapolis, on a rail basis, compared with corn at $260 a ton and sorghum at $244 a ton, both K.C. Corn gluten feed was down $5 at $235 a ton, distillers’ dried grain fell $8 to $260 a ton, and dehydrated alfalfa lost $5 at $355 a ton, all K.C. Wheat germ held steady. MBN

Wheat futures
$ per bu; change in cents per bu Dec. 21 Kansas City March May July September Chicago March May July September Minneapolis March May July September 8.42 8.52 8.57 8.69¾ 7.92 8.02 8.08¾ 8.20¾ 8.81½ 8.91¾ 9.00¼ 9.00 — Change from — Dec. 14 Dec. 7 -22¼c -22¼c -25c -23¼c -22c -24¼c -24¼c -25c -21½c -22¼c -21½c -20½c -67¾c -67½c -67¾c -60¾c -69c -68¼c -65c -61¾c -52½c -51c -49¾c -42½c Week’s High Low 8.73¼ 8.83 8.87¼ 8.95¾ 8.22¾ 8.33¾ 8.38 8.48½ 9.11½ 9.19½ 9.24 9.25 8.40½ 8.50½ 8.56¼ 8.68 7.82½ 7.94½ 7.99¾ 8.11½ 8.80¾ 8.91 8.99¼ 8.98 Year ago 6.75 6.83¼ 6.91¼ 7.05¾ 6.22 6.39½ 6.55½ 6.72 8.44½ 8.18½ 8.08 7.76¾ High 9.86½ 9.85 9.50 9.46¾ 9.82 9.72 9.47 9.05¾ 10.34½ 10.19¼ 10.00 9.70 Season’s Low (05-25-11) (05-25-11) (05-26-11) (11-29-12) (05-26-11) (05-26-11) (05-26-11) (11-08-12) (07-23-12) (07-01-12) (07-20-12) (09-14-12) 6.64½ 6.74 6.80¼ 6.87¾ 6.52 6.65 6.63 6.79 7.43 7.53½ 7.60 7.48 (05-14-12) (05-11-12) (05-14-12) (12-14-11) (05-14-12) (05-14-12) (11-25-11) (11-25-11) (05-14-12) (05-11-12) (06-05-12) (06-01-12)
D

Kansas City wheat futures
March contract, $ per bu
$10.50 $9.00 $7.50 $6.00 M J
Previous Year

S
Current Year

Chicago wheat futures
March contract, $ per bu
$10.20 $8.60 $7.00 $5.40

Bulk middlings
$ per ton, delivered rail unless noted N=Nominal Spot Kansas City 200 @ 220 Southwest, f.o.b. truck 255 @ 265 Minneapolis 249 @ 264 Upper Midwest, f.o.b. truck 245 @ 260 Chicago West 262 @ 277 Central states, f.o.b truck 255 @ 265 Buffalo 230 @ 240 Southeast 200 @ 210 N. & S. California 229 @ 249 Los Angeles, f.o.b. truck 225 @ 245 Paciﬁc Northwest 240 @ 260 Upper Midwest, sacked 320 Wheat germ 290 @ 310 Dec. 200@ 220 255@ 265 249@ 264 245@ 260 262@ 277 255@ 265 230@ 245 200@ 210 229@ 249 225@ 245 240@ 260 — Change from — Year Dec. 14 Dec. 7 ago -15 @ -5 -10@ 0 172 @ 180 0 @ +5 +5@ +5 192 @ 197 +25 @ +30 +35@ +35 162 @ 172 +25 @ +30 +35@ +35 158 @ 168 +25 @ +30 +35@ +35 175 @ 185 +25 @ +25 +28@ +28 162 @ 172 +25 @ +30 +25@ +30 148 @ 158 +10 @ +10 +10@ +10 155 @ 165 +5 @ +5 -5@ -5 181 @ 196 +5 @ +5 -5@ -5 177 @ 192 — -5@ -5 190 @ 200
D M J
Previous Year

Jan. Jan.-Mar. 180 @ 190 180@ 185 220 @ 230 220@ 230 199 @ 214 194@ 209 195 @ 210 190@ 205 212 @ 227 207@ 222 215 @ 225 200@ 210 168 @ 178 165@ 175 180 @ 190 168@ 178 222 @ 242 217@ 237 218 @ 238 213@ 233 240 @ 260 240@ 260

S
Current Year

Minneapolis wheat futures
March contract, $ per bu
$10.75 $9.75 $8.75 $7.75 $6.75 D M J
Previous Year

S
Current Year

36 / December 25, 2012 Milling & Baking News

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Milling & Baking News - December 25, 2012

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