Milling & Baking News - February 5, 2013 - 43


Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City advanced
1@9c a bu higher last week. Until Friday,
basis adjustments were few, but at the
week’s end, the premiums registered
advances across the entire protein scale,
indicating some mills and resellers were
pressed to fill gaps in pipelines even
while awaiting initial shipments of
wheat for application against February
contracts. The domestic cash hard winter
wheat basis found support from still
firm bids on hard red winter wheat from
Gulf export elevators.
The historically strong cash wheat basis
failed to generate enthusiasm among
country owners of wheat. Farmers earlier
sold up to 85% of the 2012 production
and held tightly to the remainder with
new crop prospects so uncertain. Most
wheat was in commercial hands, and
elevators eyed relatively wide carrying
charges that argued for holding and not
aggressively selling wheat.
Business in the market for to-arrive
wheat exhibited some life. Hard winter
wheat traded for March and April
delivery across the Chicago gateway.
Rain and snow fell across parts of
the hard winter wheat region from two
storms. The heaviest rain in the first
storm fell across eastern areas with many
western areas receiving only a trace to
none. The second storm laid a blanket
of snow across much of Nebraska and
Kansas. While snow depth was not so
great as to constitute significant moisture,
the snow provided some protection to the
crop when temperatures plummeted.
Most states issuing month-end crop
condition updates noted deterioration in
hard winter wheat ratings from the end of
December. Wheat rated good to excellent
as of Jan. 27 was 20% in Kansas (39% poor
to very poor), 11% good in Oklahoma

No. 1 hard winter
Basis Kansas City Dec., cents per bu
Feb. 1 — Change from — Year
Premium Jan. 25 Jan. 18
ago
Ordinary 70 @ 85 +5 @ +5 +5 @ +5 45 @ 60
11%
80 @ 95 +5 @ +5 +5 @ +5 60 @ 75
11.2%
85 @ 100 +5 @ +5 +5 @ +5 60 @ 75
11.4%
90 @ 105 +5 @ +5 +5 @ +5 68 @ 83
11.6%
96 @ 111 +8 @ +8 +9 @ +9 68 @ 83
11.8%
96 @ 111 +6 @ +6 +9 @ +9 80 @ 95
12%
100 @ 115 +9 @ +9 +13 @ +13 87 @ 102
12.2% 100 @ 115 +9 @ +9 +13 @ +13 87 @ 102
12.4% 100 @ 115 +1 @ +1
—
87 @ 102
12.6% 100 @ 115 +1 @ +1 -5 @ -5 93 @ 108
12.8% 100 @ 115 +1 @ +1 -5 @ -5 95 @ 110
13%
120 @ 135 +8 @ +8 +8 @ +8 100 @ 115
13.2% 120 @ 135 +8 @ +8 +8 @ +8 105 @ 120
13.4% 120 @ 135 +8 @ +8 +8 @ +8 115 @ 130
13.6% 120 @ 135 +8 @ +8 +8 @ +8 115 @ 130
13.8% 120 @ 135 +8 @ +8 +8 @ +8 120 @ 135
14%
120 @ 135 +8 @ +8 +8 @ +8 170 @ 185
bakingbusiness.com / world-grain.com

(69% poor to very poor), 8% good in
Nebraska (50% poor to very poor), 3%
good in South Dakota (66% poor to very
poor) and 41% in Montana (50% fair).
In Fort Worth, nearby bids on hard red
winter wheat were 15c over K.C. March,
unchanged; new crop, the July K.C. price.
Salina truck bids at terminal elevators were
at 10c under K.C. March, up 5c a bu; new
crop, 15c under July. Hutchinson elevator
bids were at 5c under K.C. March, also up
5c; new crop, 15c under July. Gulf bids on
hard red winter wheat with 12% protein for
February were 118c over K.C. March, up 1c.
HARD SPRING. Premiums on hard
red spring wheat quoted as delivered
Chicago/beyond value in relation to
the Minneapolis March wheat future
were 20c a bu higher to 20c lower
last week. The basis on 14%-protein
wheat advanced 15@20c. Premiums on
15%-protein wheat dropped 20c at the
low end of the premium range while
holding unchanged at the high end.
Export outlets for hard red spring
wheat narrowed since the Great Lakes
were closed to ocean-going vessels in
mid-December.
Wheat movement across the northern
Plains remained sluggish. Movement
would have been limited even if bitter
cold temperatures hadn’t slowed wheat
loading at country elevators.
Spring wheat continued to trade at
discounts to hard red winter wheat of
equivalent protein at several locations.
The market analysis group of

Agriculture and Agri-Food Canada on
Jan. 29 preliminarily forecast area seeded
to all wheat in Canada for harvest in
2013 at 25,326,000 acres, which would be
up 6% from the 23,828,000 acres seeded
for harvest in 2012.
SOFT RED. Mill bids on soft red winter
wheat were mostly unchanged last week.
Kansas City bids on No. 1 soft red wheat
remained withdrawn. Gulf bids on soft
red for February were 73c over Chicago
March, down 5c. St. Louis nearby mill
bids were 20c over Chicago March,
unchanged. Chicago mill bids were
25c over Chicago March, unchanged;
new crop, 25c under July. Mill bids in
Toledo for nearby were the Chicago
March price, unchanged; new crop, 20c
under July. Elevator bids were 23c under
Chicago March; new crop, 20c under July.
Cincinnati nearby mill bids were at 10c
over Chicago March, unchanged; new
crop, 15c under July. Elevator bids were
10c over Chicago March; new crop, 18c
under July. Michigan white wheat mill
bids for nearby were at 15c under Chicago
March to 20c over, unchanged; new crop,
the Chicago July price to 10c over July.
In sharp contrast to the hard red winter
wheat region and compared with yearago conditions, moisture across the soft
wheat region was adequate to surplus
with the exception of the Southeast.
The condition of the soft red winter
wheat crop in Illinois was rated 3% poor,
30% fair and 67% good to excellent at the
end of January. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Dec., delivered Chicago\beyond cents
per bu
Feb. 1
— Change from —
Year
Premium Jan. 25
Jan. 18
ago
Ordinary
...
...
...
…
11%
...
...
...
…
12%
...
...
...
…
13%
75 @ 85
…
-10 @ 0
85
13.5%
...
...
...
…
14%
95 @ 115 +20 @ +15 +20 @ +15 130 @ 165
14.5%
...
...
...
…
15%
85 @ 120 -20 @ 0
-20 @ -5
…
16%
95
...
-40
…
17%
...
...
...
…

Exporter bids and offers
For
Feb. 1
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
February
+118 March
…
March
+118 March
…
April
+119 May
122
May
+120 May
…
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
February
+73 March
78
March
+73 March
78
April
+64 May
70
May
+54 May
60

Ingredient Week

Year ago
bid

+112 March
+112 March
+105 May
+105 May

+70
+70
+60
+60

March
March
May
May

Basis Kansas City, cents per bu
150
130
110
90
70
50

Cash wheat
Feb. 1 — Change from —
For shipment
Bid Jan. 25
Jan. 18
No. 1 Soft White, Track, Portland
$ per bu
January
...
...
...
March
8.90
+.10
+.10
April
8.90
+.08
+.10
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
January
1.10
—
—
March
1.10
—
—
April
1.10
...
...
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
January
1.05
+.05
+.15
March
1.05
+.05
+.15
April
1.05
...
...

Year
ago
6.95
6.95
6.95
0.7
0.70
0.65

1.6
1.60
1.60

Milling & Baking News February 5, 2013 / 43
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - February 5, 2013

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