Milling & Baking News - November 11, 2014 - 45


Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City tumbled
5@25c a bu last week. The adjustments resulted in a basis that was ﬂat from 11.2%
protein through 13.8% at 125@135c over
the Kansas City December future. The
lowest-protein supply was quoted at a
15c discount to that level, and the highestprotein wheat was quoted at a 10c premium. It was the ﬁrst time in several weeks
that the basis lost signiﬁcant ground.
The downturn partly was a reaction
to slumping bids on hard winter wheat
at the Gulf. Softness at the Gulf reflected
the impact of recent rail freight rate
reductions for shuttle trains and waning
foreign demand for U.S. wheat. Rail
freight rates generally have weakened
recently, which knocked a few more
props out from underneath the basis.
The relatively slow pace of the fall
crop harvest allowed for more wheat to
be shipped for the time of year than the
market earlier expected. Mills received
wheat shipments for application against
November contracts and have been
mostly successful in keeping their wheat
pipelines in good order. At the same time,
millers and bakers knew rail logistics
likely will worsen once the fall crops
move in greater volume, and there was
concern winter weather will provide its
own challenges as was the case last year.
Business in the market for to-arrive
wheat was limited and viewed by
many as chancy. Country owners of
wheat remained wary of committing
to significant additional forward sales
without assurance they'll have the
required freight.
Farmer selling of wheat was limited.
Producers were said to have sold about
60% of their crop in many areas.
Hard winter wheat planting was
approaching an end with progress just

No. 1 hard winter
Basis Kansas City Dec., cents per bu
Nov. 7 - Change from - Year
Premium Oct. 31 Oct. 24
ago
Ordinary 110@ 120 -20 @ -20 -22 @ -22 110 @ 120
11%
110@ 120 -20 @ -20 -22 @ -22 115 @ 125
11.2% 125@ 135 -5 @ -5
-7 @ -7 123 @ 133
11.4% 125@ 135 -5 @ -5
-7 @ -7 150 @ 160
11.6% 125@ 135 -20 @ -20 -20 @ -20 150 @ 160
11.8% 125@ 135 -20 @ -20 -20 @ -20 150 @ 160
12%
125@ 135 -20 @ -20 -20 @ -20 150 @ 160
12.2% 125@ 135 -20 @ -20 -20 @ -20 150 @ 160
12.4% 125@ 135 -20 @ -20 -20 @ -20 150 @ 160
12.6% 125@ 135 -20 @ -20 -20 @ -20 150 @ 160
12.8% 125@ 135 -25 @ -25 -25 @ -25 135 @ 145
13%
125@ 135 -25 @ -25 -25 @ -25 120 @ 130
13.2% 125@ 135 -25 @ -25 -25 @ -25 120 @ 130
13.4% 125@ 135 -20 @ -20 -20 @ -20 120 @ 130
13.6% 125@ 135 -20 @ -20 -20 @ -20 115 @ 125
13.8% 125@ 135 -20 @ -20 -20 @ -20 115 @ 125
14%
135@ 145 -10 @ -10 -10 @ -10 115 @ 125
bakingbusiness.com / world-grain.com

ahead of the average pace in most states.
Montana, Nebraska and Colorado
growers completed their wheat planting
by Nov. 2. Seeding was 93% completed
in Kansas, 99% in South Dakota, 95% in
Oklahoma and 86% in Texas,
Wheat emergence was ahead of the
average pace in the principal states and was
at 82% in Kansas, 87% in Oklahoma, 69% in
Texas, 96% in Nebraska, 100% in Colorado,
85% in South Dakota and 97% in Montana.
Winter wheat rated good to excellent
on Nov. 2 was 64% in Kansas (34% fair),
49% in Oklahoma (37% fair), 51% in
Texas (33% fair), 79% in Nebraska, 48%
in Colorado (45% fair), 71% in South
Dakota and 75% in Montana.
HARD SPRING. Premiums on hard
red spring wheat in Minneapolis were
55c a bu higher to 150c lower last week.
Adjustments were erratic but generally
were stronger in the case of wheat with
lower protein and weaker in the case of
higher-protein supply. The adjustments
did not alter the fact that higher-protein
wheat continued to be quoted much above
wheat with protein below 14%, which
reﬂected the relatively low average protein
of both the 2014 and 2013 crops. The cash
spring wheat basis remained historically
high. At 275c over the Minneapolis
December future, the basis on 14%-protein
wheat compared with 140c over in 2013,
80c over in 2012, 185c over in 2011, 125c
over in 2010 and 180c over in 2009.
Mills requiring high-protein spring
wheat to meet certain bakers' specifications

seemed to have covered their requirements
for such wheat through December, which
allowed the high-protein wheat basis to
soften in the past several days.
The slow fall crop harvest allowed
more wheat to be shipped in recent
weeks than earlier expected.
SOFT RED. Mill bids on soft red winter
wheat were unchanged to 20c a bu
higher last week. St. Louis mill bids for
nearby were at 20c over the Chicago
December wheat future, up 20c. The
upward adjustment reflected the need
for area mills to pry additional wheat
from country hands that increasingly
were preoccupied with fall crop harvest.
Chicago mill bids for nearby were 30c
over Chicago December, unchanged.
Toledo mill bids for nearby were 30c over
Chicago December, unchanged. Elevator
bids were 14c over Chicago December.
Cincinnati elevator bids were 40c under
Chicago December. Michigan white
wheat mill bids were up to 190c over
Chicago December, unchanged. Gulf bids
on soft red winter wheat for nearby were
100c over Chicago December, unchanged.
Soft winter wheat rated good to
excellent as of Nov. 2 by the U.S.D.A.
was 64% in Illinois (69% a week earlier),
69% in Indiana (70%), 69% in Michigan
(68%), 58% in Missouri (62%) and 71%
in Ohio (71%). Winter wheat emerged
was 36% in Illinois (62% average), 51%
in Indiana (57%), 70% in Michigan
(74%), 34% in Missouri (46%) and 62%
in Ohio (61%). MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Dec., delivered Chicago\beyond cents
per bu
Nov. 7
- Change from -
Year
Premium
Oct. 31
Oct. 24
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
170
+55 @ +25 +60 @ +50
125
13%
145 @ 200
0 @ +30 +25 @ +80
120
13.5% 190 @ 230 +15 @ +20
0 @ +35
...
14%
255 @ 275 +15 @ +20 +30 @ +15 120 @ 140
14.5% 275 @ 340 -40 @ +25 -150 @ -85
...
15%
350 @ 500 -150 @ -50 -150 @ -50 170 @ 215
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Nov. 7
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
November
...
...
December
+150 Dec.
...
January
+145 March 155
February
+145 March 155
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
November
+100 Dec.
...
December
+100 Dec.
...
January
+98 March 105
February
+98 March 105

Year ago
bid

+160 Dec.
+155 Dec.
+145 March
+142 March

+90 Dec.
+85 Dec.
+75 March
+75 March

Basis Kansas City, cents per bu
180
160
140
120
100
80
N

F

M

A

Cash wheat
Nov. 7 - Change from -
For shipment
Bid Oct. 31 Oct. 24
No. 1 Soft White, Track, Portland
$ per bu
November
6.88
+.05
+.09
December
6.88
+.05
+.09
January
6.95
+.05
+.05
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
November
1.50
-
-.05
December
1.55
-
-.05
January
1.55
-
-.05
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
November
2.50
-
-.04
December
2.50
-
-.04
January
2.52
-
-.03

Year
ago
...
...
7.20
0.95
0.95
0.98
...
1.40
1.25

Milling & Baking News November 11, 2014 / 45
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Milling & Baking News - November 11, 2014

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