Milling & Baking News - June 21, 2016 - 46

Ingredient Week X

Wheat Futures
Kansas City and Chicago futures declined last week with Minneapolis futures closing with slim, mixed changes.
The advancing winter wheat harvest exerted pressure as did retreating soy complex futures through most of the week.
Bounces in agricultural futures at the
week's end pared but did not erase the
earlier declines. Before the Friday bounce,
wheat futures had declined six consecutive sessions. September contracts closed
on Thursday, June 16, down 43c a bu
from recent highs (June 8) in Kansas City
futures, down 49c in Chicago futures and
down 27c in Minneapolis futures.
The winter wheat harvest expanded
northward under increasingly favorable
conditions. The U.S. Department of Agriculture indicated the harvest was 11%
completed by June 12 compared with 2%
a week earlier, 9% a year ago and 18% as
the recent five-year average for the date.
The harvest pace was expected to accelerate in the next several days.
Winter wheat yields have been strong
(the U.S.D.A. on June 10 forecast the
winter wheat yields to average a record
50.5 bus per acre), and an interior Kansas
miller indicated hard red winter wheat
delivered to his facility had very good
quality, but protein was 11.5% or below.

Combining expanded into the key soft
red winter wheat region of the Central
states, and millers there were hopeful
wheat quality will be much improved
from the previous two seasons.
Growing conditions for the spring
wheat crop were favorable. The U.S.D.A.
rated the crop as 79% good to excellent
as of June 12, the same as a week earlier
and compared with 70% a year ago.
The U.S.D.A. indicated net export
sales of wheat during the week ended
June 9 for delivery in the 2016-17 marketing year totaled 762,900 tonnes. The
weekly aggregate greatly exceeded prereport trade expectations that ranged
from 250,000 to 450,000 tonnes.
Through the week, wheat futures bore
the weight of bearish U.S.D.A. forecasts
for 2016-17 U.S. and world wheat supply-and-demand issued on June 10. The
U.S.D.A. forecast the carryover of wheat
in the United States on June 1, 2017, at
1,050 million bus, which would constitute the largest June 1 inventory since
1988. The U.S.D.A. forecast world wheat
ending stocks at 257.84 million tonnes,
which would be a new record. MBN

Millfeed
Nearby prices mostly were higher
last week with the Southwest a notable

exception. In the absence of market features, some traders focused on movement in corn and soybean futures markets, which offered possible pricing direction for competing ingredients such
as corn gluten feed and soy hulls.
Average flour grind was about six
days. Demand remained slack in some
markets but firmed modestly in other areas, such as the Upper Midwest, where
the creep feed season was beginning. In
the Southeast, hot weather was contributing to an uptick in catfish feed buying.
The key Southwest market had a softer
tone last week. A trader said pastures remained in mostly good condition, despite
hot and dry weather that hadn't lingered
long enough to do much damage.
Traders awaited the long July 4 holiday weekend. While there weren't signs
of buying in advance of the holiday,
there were hopes abbreviated mill grind
would tighten nearby supplies and
boost prices.
Millfeed was $48 a ton in Kansas City
and $67 in Minneapolis, on a rail basis,
compared with corn at $152 a ton and
sorghum at $133 a ton, both K.C. Corn
gluten feed was up $5 at $165 a ton, distillers' dried grain was down $2 at $188
a ton, and dehydrated alfalfa was steady
at $220 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
July contract, $ per bu

$ per bu; change in cents per bu
June 17
Kansas City
July
September
December
March
Chicago
July
September
December
March
Minneapolis
July
September
December
March

- Change from -
June 10 June 3

Week's
High
Low

Year
ago

High

$8.00

Season's
Low

$7.00

4.60¾
4.78½
5.02¾
5.18½

-7¾c
-7c
-7¼c
-7¼c

-13¼c
-11¼c
-10¼c
-10¾c

4.77¼
4.94½
5.18¾
5.34¼

4.50¼
4.67¾
4.93
5.09¼

5.03¼
5.13
5.32
5.46

7.30¼
6.93½
6.95¾
6.95¾

(06-06-14)
(07-17-14)
(07-17-14)
(07-17-14)

4.41¼ (05-11-16)
4.58¾ (05-11-16)
4.83½ (05-11-16)
5(05-11-16)

4.81¼
4.94¾
5.13
5.31¼

-13¾c
-11¾c
-11¾c
-11c

-16c
-12c
-10c
-8¾c

5.03¼
5.14¾
5.33½
5.51½

4.72½
4.85
5.04¼
5.23

4.88½
4.92½
5.06¼
5.19¾

7.10
6.54½
6.65½
6.65½

(05-20-14)
(08-06-14)
(08-06-14)
(08-06-14)

4.49½
4.60
4.75¾
4.89¾

(03-02-16)
(03-02-16)
(03-02-16)
(03-02-16)

5.39¾
5.48¾
5.61¾
5.74¾

+1¼c
+2c
-
-½c

+¼c
+1c
+1¼c
+2¼c

5.47
5.55¾
5.70¾
5.84¼

5.28½
5.37¼
5.51
5.64¼

5.43
5.53¾
5.67¼
5.81

6.74
6.55
6.60
6.68

(09-24-14)
(07-02-14)
(07-02-15)
(06-30-15)

4.93
5.02¾
5.17¾
5.31¾

(03-01-16)
(03-01-16)
(03-01-16)
(03-01-16)

$6.00
$5.00
$4.00
J

S

D
Previous Year

M
Current Year

Chicago wheat futures
July contract, $ per bu

$7.00
$6.00

Bulk middlings

$5.00

$ per ton, delivered rail unless noted
Spot
Kansas City
48 @ 58
Southwest, f.o.b. truck
80 @ 90
Minneapolis
67 @ 77
Upper Midwest, f.o.b. truck 63 @ 73
Chicago West
80 @ 90
Central states, f.o.b truck 83 @ 93
Buﬀalo
89 @ 99
Southeast
75 @ 85
N. & S. California
134 @ 149
Los Angeles, f.o.b. truck 130 @ 145
Paciﬁc Northwest
105 @ 120
Upper Midwest, sacked
327
Wheat germ
220 @ 240

June
48 @ 58
80 @ 90
67 @ 77
63 @ 73
80 @ 90
83 @ 93
89 @ 99
75 @ 85
134@ 149
130@ 145
100@ 115

46 / June 21, 2016 XMilling & Baking News

- Change from -
June 10 June 3
-4@ -4
-4@ -4
+5@ +5 +4@ +4
+5@ +5 +5@ +5
+5@ +5 +5@ +5
+5@ +5 +5@ +5
+3@ +3 +2@ +2
+7@ +7 +11@ +11
-
+5@ +5
+5@ +5 +5@ +5
+5@ +5 +5@ +5
-
-

Year
ago
53@ 63
77@ 87
76@ 86
72@ 82
89@ 99
70@ 80
73@ 83
70@ 80
131@ 146
127@ 142
130@ 145

$4.00

July
68@ 78
100@ 110
78@ 88
74@ 84
91@ 101
85@ 95
81@ 91
80@ 90
129@ 144
125@ 140
100@ 115

July-Sept. Oct.-Dec.
68@ 78 98@ 108
100@ 110 120@ 130
81@ 91 86@ 96
77@ 87 82@ 92
94@ 104 99@ 109
85@ 95 100@ 110
81@ 91 90@ 100
80@ 90 90@ 100
129@ 144 139@ 154
125@ 140 135@ 150
100@ 115 100@ 115

J

S

D
Previous Year

M
Current Year

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

S

D
Previous Year

M
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - June 21, 2016

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