Milling & Baking News - February 2, 2016 - 34

Ingredient Week X

Wheat Futures
Wheat futures posted minor gains last
week. Futures continued to trade above
their contract and multi-year lows set in
early January but not by all that much.
It was difficult to find traction for a rally
in a market awash with wheat worldwide. Some traders suggested new tests
of contract lows were likely. At the same
time, a tighter outlook for 2016-17 world
wheat supply and demand emboldened
bulls to suggest prices in the next few
months should begin to trend higher.
The U.S. Department of Agriculture indicated net export sales of wheat during
the week ended Jan. 21 totaled 294,200
tonnes for 2015-16, down 19% from the
previous week but up 9% from the prior
four-week average. Exports and undelivered sales of U.S. wheat as of Jan. 21 for
2015-16 totaled 616.1 million bus, which
lagged the year-ago pace by 16%. The
U.S.D.A. forecast U.S. wheat exports in
2015-16 at 800 million bus, which would
be the lowest outgo since before the U.S.Soviet wheat deal of 1972-73. The U.S. exported a paltry 854 million bus of wheat
in 2014-15. With the current pace well
behind that of 2014-15, many analysts
doubted the U.S.D.A.'s forecast for this
year's exports will be achieved.
Russian rumors exerted a push and

pull. The market was strengthened on
early-week talk Russia may impose an
export tax on wheat but weakened when
Russian officials commented they may
not move to restrict exports.
Weather remained mostly favorable to
the winter wheat crop across most of the
Northern Hemisphere.
Farmer selling of wheat remained limited with producers discouraged with
prices they held to be too low. At the
same time, analysts suggested, because
of the prolonged period of low prices
and scant chances for significant advances anytime soon, growers may reassess
price targets to trigger sales.
The International Grains Council
on Jan. 21 issued its preliminary 201617 world wheat supply and demand
projections. The I.G.C. forecast world
wheat production in the upcoming year
at 706 million tonnes, down 3% from its
forecast for the current year at a record
731 million tonnes. It projected 2016-17
world wheat ending stocks at 207 million tonnes, down 6 million tonnes from
the forecast for the current year at a record 213 million tonnes. MBN

Millfeed
Prices ended mixed last week with deferred values mostly lower after February

became the nearby contract. Hand-tomouth buying was the norm. Price definition from April through September was a
work in progress because little trading was
yet taking place that far forward. Traders
noted, though, that market sentiment was
bearish for summer values on assumptions corn prices will continue to weaken
and grass will be widely available.
The Southwest market saw an uptick in
demand last week and higher nearby values. But prices changes in other markets
were modest and variable. Lightly tested
California quotes declined sharply on the
week but have been following an up-anddown price pattern in recent weeks.
Mill grind averaged about 5½ days
last week with a few mills operating
only 4½ days and others running seven.
Some Northeast mills temporarily closed
for a couple of additional days because
of a major snowstorm that hit the Eastern Seaboard, but operations were back
to normal by the week's end.
Millfeed was $100 a ton in Kansas City
and $85 in Minneapolis, on a rail basis,
compared with corn at $133 a ton and
sorghum at $119 a ton, both K.C. Corn
gluten feed was steady at $145 a ton, distillers' dried grain was up $1 at $143 a
ton, and dehydrated alfalfa was steady
at $240 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu
Jan. 29
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

- Change from -
Jan. 22 Jan. 15

Week's
High
Low

Year
ago

High

$9.00

Season's
Low

$8.00

4.72
4.82¼
4.92¼
5.05¾

+1¼c
+1½c
+1½c
+1¾c

-2c
-1¾c
-1¼c
-¾c

4.79½
4.89½
5.00
5.12¼

4.63
4.73½
4.83¾
4.97½

5.40¼
5.42¾
5.46¼
5.57¾

8.22¾
8.18
7.49
6.93½

(05-12-14)
(05-12-14)
(05-13-14)
(07-17-14)

4.51¾
4.62½
4.72½
4.87½

(01-04-16)
(01-04-16)
(01-04-16)
(01-04-16)

4.79¼
4.85
4.90½
4.99½

+3¾c
+4¾c
+5¼c
+5¾c

+5½c
+6½c
+6c
+6½c

4.88½
4.93½
4.99
5.07¼

4.70½
4.76
4.82¼
4.91¼

5.02¾
5.06¾
5.11½
5.19¾

7.69
7.65¾
7.32
6.54½

(05-07-14)
(05-06-14)
(05-09-14)
(08-06-14)

4.56
4.61¾
4.69¼
4.79

(01-04-16)
(01-07-16)
(01-07-16)
(01-07-16)

5.00
5.05½
5.12
5.21¾

+3c
+2½c
+3c
+2¾c

+2¾c
+2c
+1½c
+1c

5.05
5.10
5.16½
5.26

4.94
4.99½
5.06
5.16

5.56¾
5.61¼
5.69
5.77

7.87
7.17½
6.74
6.55

(06-19-14)
(08-14-14)
(09-24-14)
(07-02-14)

4.82¼
4.92¼
5.02¾
5.15¼

(01-04-16)
(01-04-16)
(01-06-16)
(01-06-16)

$7.00
$6.00
$5.00
$4.00
J

A

J
Previous Year

O
Current Year

Chicago wheat futures
March contract, $ per bu

$8.00
$7.00
$6.00

Bulk middlings

$5.00

$ per ton, delivered rail unless noted
Spot
Kansas City
100 @ 110
Southwest, f.o.b. truck
125 @ 135
Minneapolis
85 @ 95
Upper Midwest, f.o.b. truck 81 @ 91
Chicago West
98 @ 108
Central states, f.o.b truck 87 @ 97
Buﬀalo
73 @ 83
Southeast
83 @ 93
N. & S. California
107 @ 122
Los Angeles, f.o.b. truck 103 @ 118
Paciﬁc Northwest
110 @ 125
Upper Midwest, sacked
325
Wheat germ
220 @ 250

Feb.
100@ 110
125@ 135
83 @ 93
79 @ 89
96 @ 106
84 @ 94
71 @ 81
83 @ 93
107@ 122
103@ 118
110@ 125

34 / February 2, 2016 XMilling & Baking News

- Change from -
Jan. 22 Jan. 15
+1@ +1 +5@ +5
-5@ -5
-2@ -2
-1@ -1
-4@ -4
-1@ -1
-4@ -4
-1@ -1
-4@ -4
-2@ -2 +2@ +2
-4@ -14 -6@ -6
-2@ -2
-2@ -2
-12@ -12 -7@ -7
-12@ -12 -7@ -7
-
-

Year
ago
125@ 135
155@ 165
119@ 125
115@ 125
132@ 142
106@ 116
102@ 112
105@ 115
176@ 191
172@ 187
130@ 145

$4.00

Mar.
Apr.-June July-Sept.
93@ 103 67@ 77 67@ 77
120@ 130 92@ 102 92@ 102
82@ 92
77@ 87 81@ 91
78@ 88
73@ 83 77@ 87
95@ 105 90@ 100 94@ 104
83@ 93
73@ 83 73@ 83
67@ 77
60@ 70 57@ 67
79@ 89
74@ 84 74@ 84
107@ 122 103@ 118 103@ 118
103@ 118 99@ 114 99@ 114
110@ 125 110@ 125 110@ 125

J

A

J
Previous Year

O
Current Year

Minneapolis wheat futures
March contract, $ per bu
$8.70
$7.90
$7.10
$6.30
$5.50
$4.70
J

A

J
Previous Year

O
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - February 2, 2016

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