Milling & Baking News - March 17, 2015 - 51

Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were 6c a bu
higher to 10c lower last week. Six-cent gains
were the rule across the bottom third of the
protein scale. Premiums across the top twothirds of the protein scale were unchanged
except at 14% protein, where the basis
dropped 10c at the week's end. The previous week, premiums across the bottom
third of the protein scale were unchanged
while the basis across the top two-thirds of
the scale advanced 3@13c a bu.
Bids and offers for to-arrive wheat were
on the rise, and the spread between the
two was too wide for much business to
be transacted. Looking ahead, rail freight
rate hikes were expected May 1, and rail
car rental rates in the secondary market
were escalating. This may help underpin
the cash basis in coming weeks.
Merchandisers remarked that for
the date pan bread flour coverage was
much more extensive this year than last
year, which ensured hard winter wheat
mills will be especially intent on keeping
pipelines adequately filled. At the same
time, elevators weren't eager to load what
wheat they owned, or sell supply ahead,
in the absence of farmer selling.
Farmer selling of hard red winter
wheat remained light. The recent rise in
wheat futures prices was not so dramatic
as to coax growers to sell additional
supply. Most growers already sold about
75% or even more of their 2014 crop
and seemed inclined to hold tightly to
the remainder until they become more
certain of the 2015 crop's prospects.
Texas wheat condition improved
in the week ended March 8. The U.S.
Department of Agriculture in that state
rated the winter wheat crop at 50% good
to excellent (39% fair) compared with
46% a week earlier.
Weather turned unseasonably warm,

No. 1 hard winter
Basis Kansas City May, cents per bu
Mar. 13 - Change from -
Premium Mar. 6 Feb. 27
Ordinary 95@ 105 +6 @ +6 +6 @ +6
11%
95@ 105 +6 @ +6 +6 @ +6
11.2% 95@ 105 +6 @ +6 +6 @ +6
11.4% 95@ 105 +6 @ +6 +6 @ +6
11.6% 95@ 105 +6 @ +6 +6 @ +6
11.8% 95@ 105 +6 @ +6 +6 @ +6
12%
103@ 113
-
+3 @ +3
12.2% 103@ 113
-
+3 @ +3
12.4% 103@ 113
-
+3 @ +3
12.6% 103@ 113
-
+3 @ +3
12.8% 103@ 113
-
+3 @ +3
13%
103@ 113
-
+3 @ +3
13.2% 103@ 113
-
+3 @ +3
13.4% 103@ 113
-
+3 @ +3
13.6% 103@ 113
-
+1 @ +1
13.8% 115@ 125
-
+8 @ +8
14%
120@ 130 -10 @ -10 +3 @ +3
bakingbusiness.com / world-grain.com

Year
ago
126 @ 136
130 @ 140
130 @ 140
130 @ 140
130 @ 140
130 @ 140
135 @ 145
135 @ 145
135 @ 145
135 @ 145
135 @ 145
125 @ 135
125 @ 135
125 @ 135
125 @ 135
125 @ 135
130 @ 140

and wheat was greening up in many
areas. It was hoped no severe plunge in
temperatures would take place in the
next few weeks. More precipitation was
needed across the region, though.
The U.S.D.A. on March 10 forecast the
carryover of hard red winter wheat on June
1, 2015, at 268 million bus, unchanged from
the February outlook and up 31 million
bus, or 13%, from 237 million bus in 2014.
In Fort Worth, bids on hard red winter
wheat for nearby were 40c over K.C.
May, unchanged; new crop, 40c over July.
Salina truck bids at terminal elevators
for nearby were the K.C. May price; new
crop, 20c under July. Hutchinson elevator
bids for nearby were 10c under K.C.
May; new crop, 10c under July. The best
Wichita elevator bid was 15c under K.C.
May; new crop, 18c under July. Gulf bids
on hard red winter with 12% protein for
nearby were 139c over K.C. May, up 4c.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis tumbled as
much as 195c a bu last week. Particularly
wide losses were posted at 13%, 13.5%,
14.5% and 15% protein levels. Wheat
movement picked up, which exerted
pressure on the cash basis. At the same
time, with temperatures warming and
snow cover melted, road restrictions have
come into play, which may complicate
truck logistics, particularly with regard
to moving wheat from on-farm bins to
commercial storage, in the next few weeks.
Even after dropping 50c a bu, the basis
on 15%-protein wheat was quoted $2.30

higher than the basis on 14% protein,
which reﬂected the low average protein
of the 2014 crop.
The U.S.D.A. on March 10 forecast the
2015 hard red spring wheat carryover at
189 million bus, down 1 million bus from
the February outlook but up 20 million
bus from 2014. The adjustment was due
to an expected increase in seed use. The
U.S.D.A. will issue its spring wheat
seeding forecast, based on a survey of
producers' intentions, on March 31.
SOFT RED. Mill bids on soft red winter
wheat were ﬁrm to 12c a bu higher last
week. St. Louis mill bids for nearby were
10c over the Chicago May wheat future,
unchanged. Chicago mill bids for nearby
were 20c over Chicago May, up 12c. There
was no posted new crop bid. Toledo mill
bids for March were 20c over Chicago
May, unchanged; new crop, 20c over
July. Elevator bids were 15c over Chicago
May; new crop, 10c over July. Cincinnati
elevator bids were at the Chicago May
price; new crop, 5c over July. Michigan
white wheat mill bids were 175@195c
over Chicago May, unchanged. Gulf bids
on soft red winter wheat for March were
90c over Chicago May, up 5c.
Snow cover has melted across most
of the Central states. Michigan still had
snow, but a turn to unseasonably warmer
weather was spreading northward.
The U.S.D.A. on March 10 forecast the
2015 soft red winter wheat carryover at
185 million bus, up 5 million bus from
the February projection. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis May, delivered Chicago\beyond cents
per bu
Mar. 13
- Change from -
Year
Premium
Mar. 6
Feb. 27
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
30 @ 50
-20 @ -10 -20 @ -5
150
13%
60 @ 65
-35 @ -45 -10 @ -20 180 @ 250
13.5%
90 @ 140 -35 @ -45 +5 @ 0
...
14%
155 @ 220 -45 @ -10
-5 @ +20 230 @ 265
14.5%
180
-100 @ -195 -40 @ -70
...
15%
305 @ 450 -145 @ -50 -70 @ +10 285 @ 300
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Mar. 13
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
March
139 May
145
April
+134 May
141
May
+132 May
140
June
+115 July
125
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
March
+90 May
...
April
+70 May
85
May
+63 May
80
June
+52 July
56

Year ago
bid

+165 May
+160 May
+150 May
+140 July

+112 May
+85 May
+65 May
+46 July

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

J

S

D

Cash wheat
Mar. 13 - Change from -
For shipment
Bid Mar. 6
Feb. 27
No. 1 Soft White, Track, Portland
$ per bu
March
6.25
-
-.35
April
6.25
-
-.35
May
6.30
-
-.30
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
March
1.10
-
+.05
April
1.15
-
-
May
1.15
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
March
1.95
-
+.10
April
2.00
-
-
May
2.00
-
-
Milling & Baking News

Year
ago
7.40
7.40
7.40
1.30
1.30
1.30
1.90
1.80
1.70

March 17, 2015 / 51
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - March 17, 2015

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