Milling & Baking News - October 11, 2016 - 42

Ingredient Week X

Wheat Futures
Kansas City and Chicago wheat futures
fell last week while Minneapolis futures
registered gains. K.C. contracts and Chicago continued to trade just a hair's breadth
above contract and multi-year lows posted
on Aug. 31. In contrast, the Minneapolis
December inched above its recent high
set in mid-August and to the highest level since June 28. The relative strength in
Minneapolis futures compared with K.C.
and Chicago futures reflected the value of
protein in a year of historically low hard
winter wheat protein, a smaller spring
wheat crop versus a much larger hard red
winter wheat crop than in 2015, and questions over the quality of Canada's huge
spring wheat crop. Extensive damage to
the Canadian crop may shift some export
demand to the United States.
Minneapolis futures continued to extend their lead over K.C. and Chicago
futures. At the end of trading on Oct 7,
the Minneapolis December wheat future
closed about $1.20 a bu higher than the
K.C. December and about $1.29 a bu
above the Chicago December.
K.C. futures also bore extra weight
from a higher-than-expected Sept. 1
wheat stocks estimate from the U.S. Department of Agriculture, which inferred
less hard red winter wheat was fed

during the first quarter of the crop year
than expected.
Low prices, particularly of hard red
winter wheat, made U.S. supplies more
competitive in key world export markets. At the same time, the U.S.D.A. indicated net export sales of wheat during
the week ended Sept. 29 totaled 377,000
tonnes, down 34% from the previous
week and down 31% from prior fourweek average.
Morocco announced it purchased
260,000 tonnes of U.S. soft red winter
wheat last week. The U.S.D.A.'s 24-hour
reporting service indicated that Morocco
also purchased 115,000 tonnes of U.S.
hard red winter wheat, but Egypt purchased Russian wheat.
Hard red winter wheat values in the
country remained below the marketing
assistance loan rate. For the crop year to
date, farmers in the Southwest - Kansas, Oklahoma, Texas, Colorado and Nebraska - have collected $65,636,332 in
loan deficiency payments on 356,931,971
bus with an average L.D.P. of 18c a bu. MBN

Millfeed
Nearby values mostly were lower
last week with the exception of the
Southwest rail market and the Southeast, which saw modest October gains.

Deferred quotes were mixed. Hand-tomouth buying was the norm, traders
said.
Price direction was ill-defined. Flour
grind averaged about 5½ days in the
Southwest and Upper Midwest, six
days in Central states, and some mills
in Northeast were running seven days.
Creep feed buying was fading in the Upper Midwest while demand for catfish
feed in the Southeast remained solid.
Market participants were awaiting
the arrival of colder weather, which was
viewed as a precursor to more robust demand for manufactured feed.
Traders in the Southwest noted that
obtaining trucks has become more difficult as huge corn and soybean harvests
started to monopolize transportation
in the nation's midsection. The situation, though, has remained manageable.
Large corn, wheat and soybean crops
this year have also tended to keep a lid
on millfeed values.
Millfeed was $79 a ton in Kansas City
and $74 in Minneapolis, on a rail basis,
compared with corn at $106 a ton and
sorghum at $95 a ton, both K.C. Corn
gluten feed was down $5 at $120 a ton,
distillers' dried grain fell $15 to $115 a
ton, and dehydrated alfalfa was steady
at $215 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu

Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

- Change from -
Sept. 30 Sept. 23

Week's
High
Low

Year
ago

High

4.03
4.19½
4.30
4.40½

-12½c
-12½c
-12½c
-12c

-18½c
-18½c
-18c
-17¼c

4.18¼
4.34¼
4.45
4.55½

4.01¼
4.17¾
4.29
4.39¼

5.00¼
5.14¾
5.24¼
5.34½

6.86¼
6.85½
6.85½
6.51½

(12-17-14)
(12-17-14)
(12-17-14)
(06-30-15)

3.95
4.11½
4.22
4.32

(08-31-16)
(08-31-16)
(08-31-16)
(08-31-16)

3.94¾
4.14¾
4.28¾
4.40½

-7¼c
-10c
-9¼c
-7c

-10c
-13¼c
-13c
-9½c

4.09½
4.29¾
4.43
4.54

3.91½
4.13½
4.26¾
4.36¾

5.09¼
5.16¾
5.21¾
5.26

6.53
6.54½
6.48
6.27¼

(12-17-14)
(12-17-14)
(06-30-15)
(12-17-14)

3.86¾
4.09
4.23¼
4.33

(08-31-16)
(08-31-16)
(08-31-16)
(08-31-16)

+7½c +18¼c
+4¼c +14¾c
+2¾c
+12c
+½c +9¼c

5.33½
5.35
5.39
5.46¼

5.09¼
5.15¼
5.21¼
5.33¾

5.29½
5.42
5.50½
5.59½

6.60
6.68
6.03
6.07½

(07-02-15)
(06-30-15)
(08-20-15)
(06-08-16)

4.80¼
4.90
4.99¾
5.09¾

(08-31-16)
(08-31-16)
(08-31-16)
(08-31-16)

5.22
5.25¼
5.30½
5.36

$7.30

Season's
Low

Oct. 7

$6.10
$4.90
$3.70
O

J

A
Previous Year

J
Current Year

Chicago wheat futures
December contract, $ per bu

$7.50
$6.50
$5.50

Bulk middlings

$4.50

$ per ton, delivered rail unless noted
Spot
Kansas City
79 @ 89
Southwest, f.o.b. truck
103 @ 113
Minneapolis
74 @ 84
Upper Midwest, f.o.b. truck 70 @ 80
Chicago West
87 @ 97
Central states, f.o.b truck 68 @ 78
Buﬀalo
61 @ 71
Southeast
79 @ 89
N. & S. California
118 @ 133
Los Angeles, f.o.b. truck 122 @ 137
Paciﬁc Northwest
80 @ 90
Upper Midwest, sacked
327
Wheat germ
220 @ 240

- Change from -
Oct.
Sept. 30 Sept. 23
79 @ 89 +2@ +2 +8@ +8
103@ 113 -4@ -4
-9@ -9
74 @ 84
-4@ -4 -12@ -12
70 @ 80
-4@ -4 -12@ -12
87 @ 97
-4@ -4 -12@ -12
68 @ 78
-3@ -3 -12@ -12
61 @ 71
-4@ -4
-4@ -4
78 @ 88 +3@ +3 -2@ -2
122@ 137 -3@ -3
-3@ -3
118@ 133 -3@ -3
-3@ -3
80 @ 90
-
-

42 / October 11, 2016 XMilling & Baking News

Year
ago
95@ 105
120@ 130
92@ 102
88@ 98
105@ 115
87@ 97
84@ 94
80@ 90
119@ 134
115@ 130
105@ 120

$3.50

Nov.-Dec.
87@ 97
111@ 121
68@ 78
64@ 74
79@ 89
81@ 91
71@ 81
89@ 99
124@ 139
120@ 139
80@ 90

Jan.-Mar.
87@ 97
111@ 121
68@ 78
64@ 74
81@ 91
80@ 90
68@ 78
85@ 95
124@ 139
120@ 135
85@ 95

Apr.-June
57@ 67
81@ 91
63@ 73
59@ 69
76@ 86
62@ 72
58@ 68
73@ 83
118@ 133
114@ 129
85@ 95

O

J

A
Previous Year

J
Current Year

Minneapolis wheat futures
December contract, $ per bu
$7.10
$6.50
$5.90
$5.30
$4.70
O

J

A
Previous Year

J
Current Year

bakingbusiness.com / world-grain.com
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Milling & Baking News - October 11, 2016

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