Milling & Baking News - September 3, 2013 - 51


Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City
weakened last week with the basis on
wheat with protein from 11.4% through
13% declining 10@16c a bu. In the
case of wheat with the highest and the
lowest protein content, the basis was
untested and unchanged. The December
Kansas City wheat future became
the basic contract at a 4c premium to
the September. Even with the week’s
declines, the cash hard red winter wheat
basis remained historically strong.
Heavy shipments for application
against August contracts during the
latter half of the previous week filled
pipelines and curbed mill appetites with
the approach of the Labor Day weekend.
Some country origins asked mills to take
early delivery of September applications.
This was done on a limited basis, but
storage bins at some mills were nearly
filled, and the mills couldn’t accommodate
heavy deliveries of wheat contracted to
arrive in September. There was inquiry by
wheat buyers about October-December
wheat offers, but the latter were scarce with
elevators expecting busy times and tighter
freight during the fall harvest.
Farmer selling was limited toward the
week’s end after an early-week rally in
wheat futures encouraged some growers
to market additional supply.
The inverse in the cash hard winter
wheat basis continued with high-protein
hard winter wheat offered at a discount
to wheat with protein from 11.4%
through 13.2%. However, the inverse
narrowed in recent weeks. Prospects
for a large supply of lower-protein
hard red spring wheat as the northern
Plains harvest passed the halfway mark
continued to exert pressure on highprotein hard winter wheat.
Hard winter wheat producers began

No. 1 hard winter
Basis Kansas City Sept., cents per bu
Aug. 30 — Change from —
Premium Aug. 23 Aug. 16
Ordinary 86 @ 96
—
+5 @ 0
11%
101 @ 111
—
+5 @ 0
11.2% 106 @ 116
—
+5 @ 0
11.4% 116 @ 126 -10 @ -10 -5 @ -10
11.6% 116 @ 126 -10 @ -10 -5 @ -10
11.8% 116 @ 126 -16 @ -16 -6 @ -12
12%
116 @ 126 -16 @ -16 -10 @ -15
12.2% 116 @ 126 -16 @ -16 -10 @ -15
12.4% 116 @ 126 -16 @ -16 -10 @ -15
12.6% 116 @ 126 -16 @ -16 -10 @ -15
12.8% 116 @ 126 -10 @ -10 +2 @ -3
13%
116 @ 126 -10 @ -10 +15 @ +10
13.2% 116 @ 126
—
+15 @ +10
13.4% 106 @ 116
—
+5 @ 0
13.6% 106 @ 116
—
+5 @ 0
13.8% 106 @ 116
—
+5 @ 0
14%
106 @ 116
—
+5 @ 0
bakingbusiness.com / world-grain.com

Year
ago
25 @ 40
30 @ 45
35 @ 50
48 @ 63
48 @ 63
57 @ 72
60 @ 75
60 @ 75
70 @ 85
70 @ 85
70 @ 85
72 @ 87
72 @ 87
72 @ 87
72 @ 87
72 @ 87
75 @ 90

preparing for seeding the 2014 hard
winter crop. Kansas topsoil and subsoil
moisture was much improved from last
year, but recent hot and dry days were
exerting a toll on soil moisture.
The Oklahoma U.S.D.A. office
indicated 26% of wheat seedbed
preparation in that state was completed
as of Aug. 25 compared with just 7%
at the same time last year. The Texas
U.S.D.A. office commented, “In the
Northern High Plains, a few producers
began seeding small grains. However, in
most areas of the state, producers were
waiting on additional moisture.”
HARD SPRING. Premiums on hard
red spring wheat quoted as delivered
Chicago/beyond values in relation to
the Minneapolis December wheat future
surged with impressive gains posted on
wheat with protein of 12% and higher even
as the hard red spring wheat harvest passed
the half-completed mark. The December
Minneapolis wheat future became the basic
future at a 6c premium to the September.
Spring wheat offers on the spot market
were limited with a merchandiser noting
many of the posted offers from day to
day comprised winter wheat. West coast
mills and exporters drew supply from
western areas of the spring wheat region.
Producers and elevators in the Red
River valley were loading wheat in
preparation for what was expected to be
large fall crop harvest in the area.
Spring wheat combining by Aug. 25
was 42% completed in the six key states

compared with 18% a week earlier and
54% as the 2008-12 average for the date.
The North Dakota Wheat Commission
in its weekly harvest report said, “Yield
reports remain very good with most
producers reporting above-average yields
and some well above average, especially in
western parts of the four-state region. As
of Aug. 25, overall grade quality remains
high, based on reports from producers
and elevators, with high test weights,
good kernel size and color and little to no
damage. Protein levels are generally lower
than average and the 2012 crop.”
SOFT RED. Mill bids on soft red winter
wheat remained firm. St. Louis nearby
mill bids on No. 1 soft red winter wheat
were 40c over Chicago September
unchanged. Chicago mill bids were 25c
over Chicago September, unchanged. Mill
bids in Toledo for August and September
were 10c under Chicago September,
unchanged; January-March, 20c over
March; new crop, 20c over July. Elevator
bids were at 8c under Chicago September.
Cincinnati mill bids were 10c under
Chicago September, up 5c. Elevator bids
were 45c under Chicago September. Mill
bids in the eastern Corn Belt, Southeast
and East coast were strong as subpar
wheat quality in the areas forced wheat
buyers to reach out to the west to draw
supply. Michigan white wheat mill bids
were 25c over for Chicago September,
unchanged. Gulf bids on soft red winter
wheat for August were 43c over Chicago
September, up 2c. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Dec., delivered Chicago\beyond cents
per bu
Aug. 30
— Change from —
Year
Premium Aug. 23
Aug. 16
ago
Ordinary
...
...
...
…
11%
40
...
...
…
12%
70
+16
...
…
13%
74 @ 100 +15 @ +41 +10 @ +36
25
13.5%
...
...
...
…
14%
130 @ 165 +56 @ +81 +46 @ +81 15 @ 35
14.5%
...
...
...
…
15%
165 @ 195 +48 @ +21 +81 @ +81 35 @ 37
16%
...
...
...
…
17%
...
...
...
…

Exporter bids and offers
For
Aug. 30
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
August
…
September
+145 Sep.
…
October
+143 Dec.
162
November
+140 Dec.
…
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
August
+43 Sep.
…
September
+50 Sep.
55
October
+70 Dec.
80
November
+75 Dec.
…

Ingredient Week

Year ago
bid

…
+105 Sep.
+124 Dec.
+124 Dec.

0
+45
+63
+65

Sep.
Sep.
Dec.
Dec.

Basis Kansas City, cents per bu
170
130
90
50

Cash wheat
Aug. 30 — Change from —
For shipment
Bid Aug. 23 Aug. 16
No. 1 Soft White, Track, Portland
$ per bu
August
7.40
+.10
+.15
September
7.40
+.10
+.15
October
7.43
+.10
+.13
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
August
1.05
-.10
-.10
September
1.10
-.05
-.12
October
1.20
-.08
+.04
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
August
1.30
+.25
+.30
September
1.40
+.30
+.40
October
1.50
+.35
+.50

Year
ago
8.80
8.80
8.80
0.30
0.30
0.45

0.45
0.45
0.70

Milling & Baking News September 3, 2013 / 51
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - September 3, 2013

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