Milling & Baking News - December 24, 2013 - 35


Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City tumbled
10@45c a bu last week. The widest
declines of 25@45c were posted across the
top two-thirds of the protein scale. Even
with the setbacks, the cash hard winter
wheat basis remained historically strong,
underpinned by the poor performance of
railroads in placing rail cars and power
and in completing shipments.
Merchandisers said the market seemed
ripe for a setback in the event wheat began
to move in even slightly greater volume.
This happened last week with mills
receiving wheat shipments for application
against contracts, even if they arrived late.
Mills also considered wheat needs with
the approach of two holiday-shortened
work weeks. The combination of wheat
shipments received and expectations for
curtailed grind allowed some mills to pull
back from the spot market, which, in turn,
opened the way for lower trades.
Farmer selling of hard red winter
wheat remained light with slumping
wheat futures prices only adding to
growers' determination to hold on to
their remaining supply in hope of a
bounce in prices in the coming months.
Producers sometimes sell additional
supply once a new tax year begins. It
was uncertain whether this would be the
case this year given declining prices.
The cash hard winter wheat market
remained inverted with high-protein
supply quoted at a 25c discount to
middle-protein supply. The high end
of the hard winter wheat protein scale
remained pressured by the ample supply
of competitively priced spring wheat
harvested this year across the northern
Plains and Canadian Prairie provinces.
Spring wheat was being substituted for
hard red winter wheat of equivalent
protein at several milling locations.

No. 1 hard winter
Basis Kansas City March, cents per bu
Dec. 20 - Change from -
Premium Dec. 13 Dec. 6
Ordinary 105@ 115 -10 @ -10 -10 @ -10
11%
120@ 130 -20 @ -20
-
11.2% 120@ 130 -20 @ -20 -20 @ -20
11.4% 120@ 130 -20 @ -20 -20 @ -20
11.6% 120@ 130 -20 @ -20 -20 @ -20
11.8% 135@ 145 -25 @ -25 -10 @ -10
12%
135@ 145 -25 @ -25 -10 @ -10
12.2% 135@ 145 -25 @ -25 -10 @ -10
12.4% 135@ 145 -25 @ -25 -10 @ -10
12.6% 135@ 145 -25 @ -25 -10 @ -10
12.8% 110@ 120 -45 @ -45 -35 @ -35
13%
110@ 120 -45 @ -45 -15 @ -15
13.2% 110@ 120 -45 @ -45 -15 @ -15
13.4% 110@ 120 -45 @ -45 -15 @ -15
13.6% 110@ 120 -35 @ -35 -15 @ -15
13.8% 110@ 120 -35 @ -35 -15 @ -15
14%
110@ 120 -35 @ -35 -15 @ -15
bakingbusiness.com / world-grain.com

Year
ago
45 @ 60
55 @ 70
65 @ 80
70 @ 85
75 @ 90
80 @ 95
87 @ 102
87 @ 102
87 @ 102
91 @ 106
94 @ 109
94 @ 109
94 @ 109
94 @ 109
94 @ 109
94 @ 109
94 @ 109

Gulf exporter bids on hard winter wheat
were weaker, at least beyond the nearby,
reflecting expectations for less demand
for U.S. wheat in the face of competition
not only from Canada and the Black sea
nations but also from Australia.
In Fort Worth, bids on hard red
winter wheat were at 40c over K.C.
March, unchanged; new crop, 20c
over July. Salina truck bids at terminal
elevators for nearby were at 15c under
K.C. March, unchanged; new crop,
25c under July. Hutchinson elevator
bids for nearby were at 10c under K.C.
March, unchanged; new crop, 20c under
July. Wichita elevator bids were 19@14c
under K.C. March; new crop, 43@33c
under July. Gulf bids on hard red winter
wheat with 12% protein for December
were withdrawn, January-March bids
were 142c over K.C. March, unchanged.
HARD SPRING. Premiums on hard
red spring wheat quoted as delivered
Chicago/beyond values in relation to the
Minneapolis March wheat future dropped
10@85c a bu last week. The setbacks were
from historically high levels. The cash
spring wheat basis remained strong and
was propped up by ongoing poor railroad
performance. Last week's slide was said
to be tied to mills receiving wheat for
application against contracts, slightly
increased rail car loadings and limited
needs for additional spot supply in view
of holiday-abbreviated mill grind.
At 200c over the Minneapolis March
wheat future, the basis on 14%-protein

No. 1 hard spring

Exporter bids and offers
Dec. 20
Bid

wheat compared with 90c over in 2012,
155c over in 2011, 125c over in 2010, 110c
over in 2009 and 175c over in 2008.
Farmer selling of spring wheat
remained limited with no expansion
expected until the beginning of a new
tax year, if then.
An export elevator at Duluth was
loading wheat onto a vessel last week,
but the Great Lakes shipping season was
approaching its end for the winter.
SOFT RED. Mill bids on soft red winter
wheat were mostly firm. St. Louis mill bids
on No. 1 soft red winter wheat for December
were 50c over Chicago March, unchanged.
Chicago mill bids for December-February
were 20c over Chicago March, unchanged.
Mill bids in Toledo for December were
10c under Chicago March, unchanged;
January-March, March price; new crop, 10c
over July. Elevator bids were at 10c under
Chicago March; January-March, 8c under;
new crop, 10c under July. Cincinnati mill
bids were 30c under Chicago March, down
10c; new crop, 30c under July. Elevator bids
were 13c under Chicago March; new crop,
16c under July. Mill bids in the eastern
Corn Belt, Southeast and East coast were
much stronger as subpar wheat quality in
these areas forced wheat buyers to reach
out to the west to draw supply. Michigan
white wheat mill bids were 30c to 50c over
Chicago March, unchanged; new crop, the
July price to 25c over; September, 15c over
Sept. Gulf bids on soft red winter wheat
for December were 105c over Chicago
March, up 5c. MBN

No. 1 hard winter premiums, 12.2%

Basis Minneapolis March, delivered Chicago\beyond
cents per bu
Dec. 20 - Change from - Year
Premium Dec. 13 Dec. 6
ago
Ordinary . . .
...
...
...
11%
...
...
...
...
12%
100
-85
...
...
13%
160@ 175
...
+40 @ +52
...
13.5%
...
...
...
...
14%
180@ 200 -15 @ -25 +15 @ +10 80 @ 90
14.5%
...
...
...
...
15%
230@ 290 -70 @ -10 +40 @ +60 85 @ 100
16%
...
...
...
...
For
shipment

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
December
...
January
+142 March 150
February
+142 March 150
March
+142 March 150
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
December
+105 Dec.
120
January
+100 March 120
February
+97 March 120
March
+90 March 110

Year ago
bid

...
+119 March
+119 March
+119 March

+75 Dec.
+75 March
+75 March
+75 March

Basis Kansas City, cents per bu
170
130
90
50
D

M

J

S

Cash wheat
Dec. 20 - Change from -
For shipment
Bid Dec. 13 Dec. 6
No. 1 Soft White, Track, Portland
$ per bu
December
...
...
...
January
...
...
...
February
...
...
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
December
0.90
-
-
January
1.05
+.05
+.05
February
1.10
+.08
+.08
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
December
1.50
+.10
+.10
January
1.50
+.10
+.10
February
1.45
+.05
+.05

Year
ago
...
8.85
8.85
0.90
0.95
1.00
0.80
0.85
0.85

Milling & Baking News December 24, 2013 / 35
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Milling & Baking News - December 24, 2013

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