Milling & Baking News - October 29, 2013 - 36

Ingredient Week 

Wheat Futures
Prices of wheat futures declined last
week bringing to an end, at least temporarily, the recent post-harvest rally. With
the 2013 harvest completed, the supply
side of the U.S. 2013-14 wheat outlook
was more certain. Attention increasingly was turned to demand issues. While
world wheat production was expected
to set a record in 2013-14, world demand
for wheat remained strong. Declining
forecasts for South American production
held special relevance for U.S. markets.
The International Grains Council at
the end of September forecast Argentine
wheat production in 2013-14 at 11 million tonnes, down 1 million tonnes from
its August projection. Since then, the
Argentine Grain Exchange forecast the
crop at 10.3 million tonnes with some
forecasts even lower. A small Argentine
crop would come on the heels of an even
smaller outturn in 2012-13 at 8.5 million
tonnes. In contrast, Argentina's 201112 crop was 14.5 million tonnes and its
2010-11 crop was 15.9 million tonnes.
Because of its tight 2012-13 supply,
the Argentine government halted wheat
exports a few months ago. This forced
Brazil, which traditionally satisfies most
of its wheat import needs from neighboring Argentina, to turn to other nations,

particularly the United States. The U.S.
in 2013-14, through Oct. 3, sold 2,728,400
tonnes of wheat to Brazil compared with
46,000 tonnes a year ago. Nearly all of the
U.S. wheat purchased by Brazil was hard
red winter. A second sub-average Argentine crop in a row suggests Brazil may
continue to lean heavily on U.S. supply
for its wheat import needs.
The U.S. Department of Agriculture
indicated U.S. winter wheat planting
was 79% completed by Oct 20, which
was equal to the five-year average for
the date. Wheat emergence was at 53%
compared with 54% as the average.
Wheat condition was rated 65% good to
excellent and 31% fair, which marked the
best start for winter wheat in years.
Meanwhile, the soybean harvest was
63% completed by Oct. 20 compared
with 69% as the recent five-year average
for the date, and the corn harvest was
39% completed compared with 53% as
the recent average pace. MBN

Millfeed
Price changes were irregular amid
tight supplies and demand that faded after a robust start to the week. Creep feed
no longer was a major factor in the Upper Midwest. Traders experienced difficulties in obtaining truck transportation

amid the expanding row crop harvest,
especially since most buying was hand
to mouth.
Flour grind was less than ideal: grind
was reported as light as 4½ days in the
Northeast and was about six days in
the Upper Midwest and Central states.
Some locations ran short of millfeed and
shipped supplies in from other markets.
Prices were mixed with values in the
Upper Midwest and Central states declining, but prices firming in California,
the Southeast and the Northeast, with
the latter typically a cheaper market that
ships surplus supplies to other areas.
Expectations that millfeed would follow corn prices lower due to harvest
pressure have failed to be realized, in
part due to the fact that nearby corn
futures have traded nearly flat during
October. Millfeed prices have been high
enough in some cases to prompt substitution of competing ingredients in formulations.
Millfeed was $145 a ton in Kansas City
and $164 in Minneapolis, on a rail basis,
compared with corn at $155 a ton and
sorghum at $143 a ton, both K.C. Corn
gluten feed was steady at $200 a ton,
distillers' dried grain held at $230 a ton,
and dehydrated alfalfa sank $15 to $340
a ton, all K.C. Wheat germ was firmer. MBN

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu
Oct. 25
Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

- Change from -
Oct. 18 Oct. 11

Week's
High
Low

Year
ago

$10.00

Season's
Low

High

$8.50

7.59
7.59
7.54½
7.37

-9¾c
-7¼c
-8¾c
-9½c

-1¼c
-
-1½c
-

7.76½
7.75½
7.71½
7.50½

7.54½
7.54
7.52¼
7.36

9.09¼
9.23¼
9.28¾
9.03

9.52½
9.50¾
9.85
9.50

(11-28-12)
(11-28-12)
(05-25-11)
(05-26-11)

6.87¾
6.94¼
6.74
6.71¾

(09-10-13)
(09-12-13)
(05-11-12)
(06-28-13)

6.90¾
7.01¾
7.07½
7.09½

-15c
-12¾c
-9c
+6¾c

-1½c
+¾c
+4¾c
+17c

7.11¼
7.20½
7.22½
7.10¾

6.90¼
7.01
7.06
6.92

8.63¾
8.78½
8.85
8.64¾

9.13
9.12¼
9.72
9.47

(11-09-12)
(11-09-12)
(05-26-11)
(05-26-11)

6.35½
6.47¾
6.54½
6.43¾

(08-13-13)
(09-12-13)
(09-12-13)
(07-01-13)

7.45
7.55
7.61¼
7.64½

-15¼c
-15c
-13½c
-8½c

-9¾c
-9c
-5c
-4c

7.76
7.76¼
7.80
7.78¾

7.44½
7.54½
7.61¼
7.64½

9.40
9.44
9.51
9.52

9.65¼ (09-14-12)
9.58 (11-29-12)
10.19¼ (07-01-12)
10.00 (07-20-12)

6.97¼
7.10
7.17¼
7.22¾

(09-23-13)
(09-23-13)
(09-23-13)
(09-23-13)

$7.00
$5.50
O

J

A
Previous Year

J
Current Year

Chicago wheat futures
December contract, $ per bu
$10.20
$8.60

Bulk middlings

$7.00

$ per ton, delivered rail unless noted
N=Nominal
Spot
Kansas City
145 @ 155
Southwest, f.o.b. truck
185 @ 195
Minneapolis
154 @ 164
Upper Midwest, f.o.b. truck150 @ 160
Chicago West
167 @ 177
Central states, f.o.b truck 150 @ 160
Buﬀalo
130 @ 140
Southeast
150 @ 160
N. & S. California
188 @ 203
Los Angeles, f.o.b. truck 184 @ 199
Paciﬁc Northwest
130 @ 145
Upper Midwest, sacked
350
Wheat germ
300 @ 320

Oct.
140@ 147
180@ 187
144@ 154
140@ 150
157@ 167
140@ 150
125@ 135
140@ 150
179@ 194
175@ 190
130@ 145

36 / October 29, 2013 Milling & Baking News

- Change from -
Oct. 18
Oct. 11
-12 @ -15
0@ -3
-22 @ -25 +5@ +2
-20 @ -20
-5@ -5
-20 @ -20
-5@ -5
-20 @ -20
-5@ -5
-15 @ -15
0@ +5
+5 @ +5 +25@ +30
-
+5@ +5
-3 @ -13 +7@ -3
-3 @ -3
+7@ +7
-
-

Year
ago
210@ 220
235@ 245
224@ 234
220@ 230
237@ 247
215@ 225
200@ 215
195@ 205
249@ 269
245@ 265
245@ 265

$5.40

Nov.-Dec.
138 @ 147
178 @ 187
139 @ 149
135 @ 145
152 @ 162
140 @ 150
120 @ 130
133 @ 143
174 @ 189
170 @ 185
140 @ 155

Jan.-Mar.
132 @ 140
172 @ 180
132 @ 142
128 @ 138
145 @ 155
130 @ 140
115 @ 125
127 @ 137
169 @ 184
165 @ 180
140 @ 155

O

J

A
Previous Year

J
Current Year

Minneapolis wheat futures
December contract, $ per bu
$10.75
$9.75
$8.75
$7.75
$6.75
O

J

A
Previous Year

J
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - October 29, 2013

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