Milling & Baking News - December 24, 2013 - 36

Ingredient Week 

Wheat Futures
Wheat futures prices declined for the
third consecutive week, posting losses of
about 15@20c a bu in Kansas City, Chicago and Minneapolis and setting new
season's lows in all three markets, despite
mustering small gains on Friday in what
some see as oversold conditions. Nearby wheat futures prices moved mostly
higher the week of Thanksgiving, but
have since dropped 50@60c a bu, or about
8%, in all three classes, with the smallest
decline in Kansas City hard red winter
wheat. Values have tumbled more than $1
a bu in all three markets since late October, despite some steadying in the second
half of November, and were down about
20% to 25% from a year ago.
Wheat futures prices continued to be
pressured by large global supplies after
record high 2013-14 world production estimated at 711.42 million tonnes, according to the U.S. Department of Agriculture,
which includes record production in Canada of 37.5 million tonnes. Large Canadian
wheat supplies have especially pressured
U.S. hard red spring wheat futures, with
losses in Minneapolis contracts surpassing
those of Chicago's soft red winter or Kansas City's hard red winter contracts.
The U.S.D.A. said net export sales of
U.S. wheat in the week ended Dec. 12

totaled 656,100 tonnes for 2013-14, up
76% from a week earlier and up 47% from
the prior four-week average. Export sales
were well above trade expectations that
ranged from 300,000 to 550,000 tonnes.
Despite recent gains in export sales, U.S.
wheat has struggled to gain much share
in recent export tenders, other than Japan's regular purchases, which also usually include some Canadian and Australian wheat. Last week Iraq bought 350,000
tonnes of Australian wheat while Egypt
bought wheat from Russia and Romania,
which has been the trend.
Adding some pressure to wheat futures late last week was Argentina's
agriculture ministry forecast of 2013-14
wheat production of 9 million tonnes, up
500,000 tonnes from its prior forecast.
With the U.S. winter wheat crop in
dormancy, added moisture mostly in the
form of ice and snow late last week was
seen as beneficial, even if it further hampered already-slow rail and truck movement of old crop wheat to market. MBN

Millfeed
Prices were higher last week except in
the West, where they were about steady,
in a market that was virtually frozen by a
lack of supply and in pre-holiday mode.
Most nearby values were nominal because

mills were sold out. That inspired some
market participants to treat spot prices
as highly unreliable because they did not
come about as a result of actual trades.
Despite flour grind of five to six days
ahead of the Christmas week, mills were
continually short to sold out and had to
take orders several weeks forward in
some cases. Buyers were nervously looking ahead to the holiday week, when
mills would be taking from one to four
days down and weren't likely to replenish supplies until after New Year's.
Some millfeed values were so high that
it made little sense to make purchases.
Southwest spot rail quotes, for instance,
soared $35 a ton nominally last week.
Several traders said buying corn currently
made more economic sense and they were
unsure why more substitution with corn
wasn't taking place. Farmers have been
wary of selling new-crop corn because
prices have declined in recent months.
Millfeed was nominally $200 a ton in
Kansas City and nominally $204 in Minneapolis, on a rail basis, compared with
corn at $154 a ton and sorghum at $141
a ton, both K.C. Corn gluten feed was
steady at $255 a ton and distillers' dried
grain was down $5 at $240 a ton, while
dehydrated alfalfa was up $10 at $335 a
ton, all K.C. Wheat germ held steady. MBN

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu

Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

$10.00

Season's
Low

- Change from -
Dec. 13 Dec. 6

Week's
High
Low

Year
ago

High

6.57¼
6.57¾
6.55¾
6.66¾

-15¼c
-18c
-18½c
-17¼c

-38¼c
-38½c
-32¾c
-31¾c

6.72½
6.76
6.74¼
6.81¾

6.51
6.52
6.52
6.62¾

8.42
8.52
8.57
8.69¾

9.50¾
9.85
9.50
9.46¾

(11-28-12)
(05-25-11)
(05-26-11)
(11-29-12)

6.51
6.52
6.52
6.62¾

(12-20-13)
(12-20-13)
(12-20-13)
(12-20-13)

6.13½
6.20¾
6.24¾
6.34¼

-15¼c
-14c
-12¼c
-11¾c

-37½c
-35¾c
-29¼c
-28c

6.28¾
6.35½
6.36¾
6.47

6.07¼
6.14
6.17½
6.27¼

7.92
8.02
8.08¾
8.20¾

9.12¼
9.72
9.47
9.05¾

(11-09-12)
(05-26-11)
(05-26-11)
(11-08-12)

6.07¼
6.14
6.17½
6.27¼

(12-20-13)
(12-20-13)
(12-20-13)
(12-20-13)

6.50½
6.60
6.69¾
6.77½

-10c
-11½c
-11¾c
-13¼c

-30½c
-30¾c
-28½c
-28c

6.60½
6.71
6.81
6.90½

6.44¼
6.54½
6.64¾
6.73½

8.81½
8.91¾
9.00¼
9.00

9.58 (11-29-12)
10.19¼ (07-01-12)
10.00 (07-20-12)
9.70 (09-14-12)

6.44¼
6.54½
6.64¾
6.73½

(12-20-13)
(12-20-13)
(12-20-13)
(12-20-13)

Dec. 20

$8.50
$7.00
$5.50
D

M

J
Previous Year

S
Current Year

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

Bulk middlings

$7.00

$ per ton, delivered rail unless noted
N=Nominal
Spot
Kansas City
200N @ 210N
Southwest, f.o.b. truck
...
Minneapolis
204N @ 214N
Upper Midwest, f.o.b. truck 200N @ 210N
Chicago West
217N @ 227N
Central states, f.o.b truck
225N @ 235N
Buﬀalo
165N @ 175N
Southeast
180N @ 190N
N. & S. California
189 @ 204
Los Angeles, f.o.b. truck
185 @ 200
Paciﬁc Northwest
130 @ 145
Upper Midwest, sacked
350
Wheat germ
300 @ 320

Dec.
175@ 185
...
159@ 174
155@ 170
172@ 182
170@ 175
150@ 160
150@ 160
184@ 199
180@ 195
130@ 145

36 / December 24, 2013 Milling & Baking News

- Change from -
Dec. 13
Dec. 6
+10 @ +15 +19@ +20
...
...
-30 @ -25
0@ +5
-30 @ -25
0@ +5
-30 @ -25
0@ +5
-10 @ -15 +10@ +5
+30 @ +30 +20@ +20
-15 @ -15 +10@ +1
-7 @ -7
-7@ -7
-7 @ -7
-7@ -7
-
-

Year
ago
200@ 220
255@ 265
249@ 264
245@ 260
262@ 277
255@ 265
230@ 245
200@ 210
229@ 249
225@ 245
240@ 260

$5.40

Jan.-Mar.
162 @ 172
...
149 @ 159
145 @ 155
162 @ 172
147 @ 157
122 @ 132
130 @ 150
179 @ 194
175 @ 190
130 @ 145

Apr.-June
109 @ 119
...
122 @ 132
118 @ 128
135 @ 145
110 @ 118
105 @ 115
110 @ 120
154 @ 169
150 @ 165
130 @ 145

D

M

J
Previous Year

S
Current Year

Minneapolis wheat futures
March contract, $ per bu
$10.50
$9.50
$8.50
$7.50
$6.50
$5.50
D

M

J
Previous Year

S
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - December 24, 2013

Table of Contents for the Digital Edition of Milling & Baking News - December 24, 2013
