Milling & Baking News - July 5, 2016 - 42

Ingredient Week X

Wheat Futures
Wheat futures posted large declines for
the second consecutive week with fresh
contract lows posted in Chicago (which
also fell to six-year lows) and Kansas City
contracts earlier in the week and in Minneapolis on Friday. For the week, nearby
Chicago wheat futures dropped about
8%, Kansas City contracts about 7% and
Minneapolis about 5%.
For the month of June, the nearby Chicago July wheat contract fell about 50c
a bu, or 11%, Kansas City about 45c, or
10%, and Minneapolis about 25c, or 5%.
Pressure on wheat futures came from the
advancing winter wheat harvest, adding
to already abundant domestic and world
wheat supplies, and renewed strength in
the U.S. dollar after the United Kingdom's
vote to exit the European Union a week
earlier, which could slow export demand.
U.S. Department of Agriculture planted
and harvested acreage estimates on June
10 added to the market's woes, coming in
above the average of trade expectations
even though the all wheat planted and
harvested area estimates were the lowest
since 1970. U.S.D.A. June 1 wheat stocks
estimates, also released last Thursday,
were near expectations.
Winter wheat harvested in the 18 major
states as of June 26 was at 45%, ahead of

33% a year ago and 41% as the 2011-15 average for the date, the U.S.D.A. said in its
weekly Crop Progress report. The fact that
the hard red winter harvest has produced
an abundance of below-average protein to
date has pressured wheat values as prices
must drop low enough to compete with
corn for livestock feed. The soft red winter
crop, though, has exhibited much better
quality than in the past two harvests.
The spring wheat crop also was developing well ahead of average at 56%
headed in the six major states as of
June 26, compared with 42% a year ago
and 27% as the five-year average, the
U.S.D.A. said. The crop was rated 72%
good to excellent, down from 76% a
week earlier but even with a year ago.
Export sales of U.S. wheat in the week
ended June 23 totaled 645,300 tonnes for
delivery in 2016-17, up 39% from a week
earlier, the U.S.D.A. said. Sales were
above trade expectations. One bright
spot in the wheat market has been export
sales for the year to date (June 1 through
June 23), which were up 38% from the
same period last year, although last
year's exports were abysmally low. MBN

Millfeed
As the long July 4 weekend approached, most nearby prices were

steady to higher last week while most
deferred values were steady to lower.
Gains in spot values reflected better
buying interest as feed mixers sought to
make sure they had coverage through
the holiday weekend, when most mills
around the country were expected to
shut from one to three and a half days,
resulting in temporary tightness. Declines in deferred quotes reflected a
week in which corn futures declined
sharply. Millfeed prices typically reflect
trends in corn values.
Demand mostly was steady last week,
and flour grind averaged from five to six
days. Creep-feed buying was starting to
ramp up in Upper Midwest, reflected
in higher nearby prices in that region.
Increased needs for catfish feed also accounted for an upward move in Southeast
spot prices. In the Southwest, pastures
were considered past their seasonal prime
as hotter, dryer weather became the norm,
increasing needs for manufactured feed.
Millfeed was $58 a ton in Kansas City
and $74 in Minneapolis, on a rail basis,
compared with corn at $122 a ton and
sorghum at $105 a ton, both K.C. Corn
gluten feed was down $5 at $155 a ton,
distillers' dried grain was down $5 at
$155 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

Kansas City
July
September
December
March
Chicago
July
September
December
March
Minneapolis
July
September
December
March

$7.80

Season's
Low

July 1

- Change from -
June 24 June 17

Week's
High
Low

Year
ago

High

3.94¼
4.11½
4.36¼
4.52¾

-28½c
-29½c
-30½c
-30½c

-66½c
-67c
-66½c
-65¾c

4.27¾
4.45¾
4.71¼
4.87½

3.92½
4.09
4.34¼
4.50¾

5.76
5.91¾
6.11¼
6.23½

7.30¼
6.93½
6.95¾
6.95¾

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

3.92½
4.09
4.34¼
4.50¾

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

4.16¼
4.30¼
4.50¾
4.68¾

-38½c
-34¾c
-34c
-34c

-65c
-64½c
-62¼c
-62½c

4.60
4.70½
4.89¼
5.07

4.14¼
4.28
4.48
4.66

5.85¾
5.90½
5.99¼
6.08

7.10
6.54½
6.65½
6.65½

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

4.14¼
4.28
4.48
4.66

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

4.89¼
5.00
5.16
5.31

-28½c
-26½c
-25½c
-24c

-50½c
-48¾c
-45¾c
-43¾c

5.19¾
5.29
5.42
5.55¼

4.90
4.99¼
5.15
5.30

6.06¼
6.24
6.39¾
6.51

6.74
6.55
6.60
6.68

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

4.90
4.99¼
5.15
5.30

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

$6.80
$5.80
$4.80
$3.80
J

O

J
Previous Year

A
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
58 @ 68
Southwest, f.o.b. truck
90 @ 100
Minneapolis
74 @ 84
Upper Midwest, f.o.b. truck 70 @ 80
Chicago West
87 @ 97
Central states, f.o.b truck 83 @ 93
Buﬀalo
84 @ 94
Southeast
80 @ 90
N. & S. California
129 @ 144
Los Angeles, f.o.b. truck 125 @ 140
Paciﬁc Northwest
105 @ 120
Upper Midwest, sacked
327
Wheat germ
220 @ 240
42 / July 5, 2016 XMilling & Baking News

July
58 @
90 @
76 @
72 @
89 @
83 @
84 @
80 @
129@
125@
100@

68
100
86
82
99
93
94
90
144
140
115

- Change from -
June 24 June 17
+6@ +6 +10@ +10
+3@ +3 +10@ +10
+9@ +9 +9@ +9
+9@ +9 +9@ +9
+9@ +9 +9@ +9
+1@ +1
-
+1@ +1 -5@ -5
+10@ +10 +5@ +5
-2@ -2
-5@ -5
-2@ -2
-5@ -5
-
-

Year
ago
66@ 76
81@ 91
79@ 89
75@ 85
92@ 102
73@ 83
67@ 77
70@ 80
136@ 151
132@ 147
130@ 145

$4.00

July-Sept.
65@ 75
97@ 107
84@ 94
80@ 90
97@ 107
83@ 93
81@ 91
85@ 95
129@ 144
125@ 140
100@ 115

Oct.-Dec.
92@ 102
124@ 134
81@ 91
77@ 87
94@ 104
91@ 101
92@ 102
95@ 105
134@ 149
130@ 145
100@ 115

Jan.-Mar.
94@ 104
126@ 136
81@ 91
77@ 87
94@ 104
92@ 102
91@ 101
100@ 110
134@ 149
130@ 145
100@ 115

J

O

J
Previous Year

A
Current Year

Minneapolis wheat futures
July contract, $ per bu
$7.10
$6.50
$5.90
$5.30
$4.70
J

O

J
Previous Year

A
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - July 5, 2016

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