Milling & Baking News - August 4, 2015 - 40

Ingredient Week X

Wheat Futures
Wheat futures prices continued to
slide last week. Kansas City and Minneapolis contracts set new contract lows,
and Chicago wheat futures were trading
not far above their lows set in early May.
The retreat from late-June highs was
dramatic. Based on Thursday's closing
prices, July futures compared with their
respective recent peaks dropped about
$1.18 per bu in Kansas City, $1.21 in Chicago and $1.12 in Minneapolis.
The U.S. Department of Agriculture
indicated the winter wheat harvest was
85% completed by July 26 compared
with 80% as the recent five-year average
for the date. The U.S.D.A. indicated the
spring wheat harvest was 2% completed
in the six key states by July 26 compared
with 5% as the average for the date.
The Wheat Quality Council spring wheat
crop tour took place last week. The North
Dakota crop looked outstanding, and tour
participants estimated the average spring
wheat yield in the state at 49.9 bus per acre
compared with 48.6 bus per acre in 2014 and
45.2 bus per acre as the long-term average.
The International Grains Council on July
30 raised its forecast for 2015-16 wheat ending stocks to 201 million tonnes, up 5 million tonnes from its June outlook. Ending
stocks forecast fell just 1 million tonnes shy

of upwardly revised and record 2014-15
ending stocks at 202 million tonnes. The
higher ending stocks forecast mostly was
attributed to a 4-million-tonne hike to 201516 beginning stocks. The I.G.C. forecast
world wheat production in 2015-16 at 710
million tonnes, down 1 million tonnes from
June because of cuts to the forecasts for
Canada and the European Union that were
only partly offset by higher forecasts for
the United States, Brazil and China. World
wheat production in 2014-15 was a record
721 million tonnes. The I.G.C. forecast
world trade in wheat in 2015-16 at 150 million tonnes, up 1 million tonnes from June
but down 4 million tonnes from 2014-15.
The U.S.D.A. indicated net export sales
of U.S. wheat during the week ended July
23 totaled 699,400 tonnes for 2015-16, up
39% from the previous week and up 86%
from the prior four-week average.
Producer wheat selling was minimal because of the low prices. Carrying
charges were attractive to the country
elevator manager. MBN

Millfeed
Nearby prices were mostly steady
to higher last week while deferred values were mixed. Trading was subdued,
with some market participants working to meet their buying needs before

going on vacation in August.
Demand remained solid from end-users interested in taking advantage of prices that have firmed of late but were still at
levels comparable to the early spring. In
Upper Midwest, creep-feed buying continued to buoy prices. Nearby supplies
in most markets were somewhat tight as
August became the front month.
Traders said millfeed prices were in the
process of correcting from oversold levels
in May and June. "We were so crazy cheap
for a while that prices had to go up," said
a Southwest trader. Even so, values remained attractive compared with competing ingredients such as corn gluten feed,
distillers' dried grains and soy hulls.
Despite the trend to higher nearby values, market sentiment indicated the upward push may be running out of steam.
January-March prices were mostly lower
last week. Corn futures, a strong influence
on millfeed prices, continued their downward trajectory of the last two weeks.
Millfeed was $80 a ton in Kansas City
and $105 in Minneapolis, on a rail basis,
compared with corn at $129 a ton and
sorghum at $136 a ton, both K.C. Corn
gluten feed was down $7 at $148 a ton,
distillers' dried grain was down $7 at
$160 a ton, and dehydrated alfalfa was
unchanged at $245 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu

Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

$9.00

Season's
Low

- Change from -
July 24 July 17

Week's
High
Low

Year
ago

High

4.92¼
5.12
5.25¾
5.35¼

-15c
-15¼c
-16c
-15¼c

-54¼c
-54c
-54½c
-53½c

5.08
5.27¾
5.42
5.50¾

4.90
5.10
5.24
5.34

6.32¾
6.43½
6.48
6.50¾

8.15
8.24¼
8.22¾
8.50

(05-09-14)
(05-09-14)
(05-12-14)
(05-06-14)

4.90
5.10
5.24
5.34

(07-31-15)
(07-31-15)
(07-31-15)
(07-31-15)

4.99¼
5.04¾
5.10½
5.14½

-12½c
-15c
-16½c
-16¾c

-54¾c
-58¾c
-61½c
-61½c

5.12½
5.21½
5.29½
5.32¾

4.93¾
5.01½
5.06¾
5.12½

5.34¼
5.53¼
5.74
5.87

7.63
7.72
7.69
7.94¾

(05-07-14)
(05-09-14)
(05-07-14)
(05-09-13)

4.69¼
4.85¾
5.03¾
4.60

(05-05-15)
(05-05-15)
(05-05-15)
(04-28-15)

5.23½
5.41
5.58¼
5.69½

-21½c
-21½c
-20c
-18¾c

-51¼c
-50c
-47c
-44¾c

5.45
5.62
5.77¾
5.87¾

5.21½
5.40
5.57
5.68

6.16
6.26¾
6.40½
6.48¼

7.90
7.99
7.87
8.34½

(05-13-14)
(05-09-14)
(06-19-14)
(05-06-14)

5.21½
5.40
5.57
5.68

(07-31-15)
(07-31-15)
(07-31-15)
(07-31-15)

July 31

$8.00
$7.00
$6.00
$5.00
$4.00
A

N

F
Previous Year

M
Current Year

Chicago wheat futures
September contract, $ per bu

$8.00
$7.00
$6.00

Bulk middlings

$5.00

$ per ton, delivered rail unless noted
Spot
Kansas City
80 @ 90
Southwest, f.o.b. truck
115 @ 125
Minneapolis
105 @ 115
Upper Midwest, f.o.b. truck101 @ 111
Chicago West
118 @ 128
Central states, f.o.b truck 93 @ 103
Buﬀalo
77 @ 87
Southeast
83 @ 93
N. & S. California
119 @ 134
Los Angeles, f.o.b. truck 115 @ 130
Paciﬁc Northwest
130 @ 145
Upper Midwest, sacked
325
Wheat germ
220 @ 250

Aug.
80 @ 90
115@ 125
105@ 115
101@ 111
120@ 130
93 @ 103
78 @ 88
80 @ 90
119@ 134
115@ 130
130@ 145

40 / August 4, 2015 XMilling & Baking News

- Change from -
July 24 July 17
-1@ -1 +9@ +9
+8@ +8 +23@ +23
+12@ +12 +22@ +22
+12@ +12 +22@ +22
+12@ +12 +22@ +22
+3@ +3 +12@ +12
+3@ +3 +8@ +8
-
+5@ +5
-3@ -3
-5@ -5
-3@ -3
-5@ -5
-
-

Year
ago Aug.-Sept.
70@ 80 84@ 94
97@ 107 119@ 129
104@ 114 107@ 117
100@ 110 103@ 113
117@ 127 120@ 130
86@ 96 92@ 102
70@ 80 79@ 89
75@ 85 80@ 90
134@ 149 119@ 134
130@ 145 115@ 130
135@ 150 130@ 145

$4.00

Oct.-Dec.
113@ 123
148@ 158
106@ 116
102@ 112
119@ 129
97@ 105
89@ 99
90@ 100
129@ 149
125@ 140
130@ 145

Jan.-Mar.
113@ 123
148@ 158
106@ 116
102@ 112
119@ 129
98@ 108
94@ 104
95@ 105
134@ 149
130@ 145
130@ 145

A

N

F
Previous Year

M
Current Year

Minneapolis wheat futures
September contract, $ per bu
$8.00
$7.00
$6.00
$5.00
A

N

F
Previous Year

M
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - August 4, 2015

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