Milling & Baking News - February 14, 2017 - 49

X
Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
15c a bu higher to 20c lower last week.
Premiums on wheat with protein of 11%
and 11.2% advanced 10@15c a bu. The
only other gain, 3c, was posted at 12%
protein. Five-cent declines registered at
11.6% protein and on wheat with protein
from 12.2% through 12.6%. The basis at
13% and 13.2% protein tumbled 20c.
Despite the mixed adjustments, the
cash hard red winter wheat basis still reflected the value of protein in a crop that
had low average protein. Wheat with
protein of 13% was quoted 42c above
12% protein and 85c above 11% protein.
Wheat with protein of 14% was quoted
well above the rest of the protein scale.
Receipts were light last week, although February applications were being received. There were some to-arrive
bids for April-May delivery.
Railroad performance was a concern. A
grain merchandiser was critical, saying car
maintenance was inadequate, and schedules were not being met. High freight rates
in the secondary market, mostly for shuttle cars owned by the Burlington Northern
Santa Fe, reflected stiff competition for
rolling stock because of strong corn and
soybean export programs.
The U.S. Department of Agriculture
on Feb. 9 forecast the carryover of hard
red winter wheat on June 1, 2017, at 567
million bus, down 30 million bus from
the January projection but up 27% from
446 million bus in 2016. The U.S.D.A.
raised its forecast for 2016-17 domestic
use of wheat by 5 million bus, to 541
million bus, and raised its forecast for
exports by 25 million bus, to 425 million.
The Texas U.S.D.A. field office rated the
state's crop as of Feb. 5 at 31% good to excellent compared with 29% a week earlier
and 44% on the same date a year ago. Texas

No. 1 hard winter
Basis Kansas City March, cents per bu
Feb. 10 - Change from - Year
Premium Feb. 3
Jan. 27
ago
Ordinary 10@ 20
-
-
60 @ 70
11%
55@ 65 +10 @ +10 +20 @ +20 65 @ 75
11.2% 65@ 75 +15 @ +15 +15 @ +15 65 @ 75
11.4% 80@ 90
-
-
65 @ 75
11.6% 80@ 90 -5 @ -5
-5 @ -5 65 @ 75
11.8% 89@ 99 -1 @ -1
-1 @ -1 85 @ 95
12%
98@ 108 +3 @ +3 -7 @ -7 85 @ 95
12.2% 105@ 115 -5 @ -5
-5 @ -5 85 @ 95
12.4% 105@ 115 -5 @ -5
-5 @ -5 85 @ 95
12.6% 125@ 135 -5 @ -5
-5 @ -5 85 @ 95
12.8% 130@ 140
-
-
85 @ 95
13% 140@ 150 -20 @ -20 -20 @ -20 90 @ 100
13.2% 140@ 150 -20 @ -20 -20 @ -20 90 @ 100
13.4% 160@ 170
-
-
90 @ 100
13.6% 160@ 170
-
-
90 @ 100
13.8% 160@ 170
-
-
95 @ 105
14% 225@ 235
-
-
101 @ 111
bakingbusiness.com / world-grain.com

wheat was 43% fair on Feb. 5 (44% a week
earlier) and 26% poor to very poor (27%).
Wheat growers continued to collect
loan deficiency payments related to their
2016 crop. During the week ended Feb.
6, wheat growers in the Southwest -
Kansas, Oklahoma, Texas, Nebraska and
Colorado - collected $649,377 in L.D.P.s
on 2,794,117 bus of wheat, for an average L.D.P of about 23c per bu. To date
this crop year, Southwestern producers
have collected $97,347,920 in L.D.P.s on
467,814,143 bus of wheat. Kansas producers alone have collected $54,490,884
in L.D.P.s on 272,930,112 bus of wheat.
In Fort Worth, bids on hard red winter
wheat were 50c under K.C. March. Posted Salina truck bids at terminal elevators
for nearby were 85c under K.C. March;
new crop, 75c under July. Hutchinson
wheat bids were 80c under March; new
crop, 75c under July. The highest posted
Wichita elevator bid was 80c under K.C.
March; new crop, 75c under July. Gulf
bids on hard red winter wheat with 12%
protein for February were at 130c over
K.C. March, unchanged.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis were 20c a
bu higher to 5c lower last week. Higher
receipts on certain days drew out demand, which underpinned the basis.
As Minneapolis wheat futures moved
higher and cash basis levels improved,
there was an increase in producer selling. Still, farmers continued to be discouraged by prices in the country, often

too low for them to break even.
Weather concerns loomed in the background. Some crop observers said the
snowpack in North Dakota of 30 inches
across most of the state may result in
oversaturated soil when planting time
arrives. Another frustration was the expense of transportation. In the secondary freight market, Burlington Northern
Santa Fe shuttle freight bids for the first
half of February were at $2,650 per car
with an offer of $3,500 for the middle
part of February. This represented an increase from B.N.S.F. freight bids in late
January of $2,200 per car for January and
the first part of February.
SOFT RED. The cash soft red winter
wheat market remained mostly firm.
St. Louis-area mill bids for nearby were
20@45c over Chicago March, unchanged.
Stronger bids at some locations reflected
efforts to encourage more wheat sales
that would enable mills to sustain inventories. Chicago mill bids for nearby
were at 10c over Chicago March, unchanged. Toledo mill bids were Chicago
March price, unchanged. Elevator bids
were 10c under Chicago March. Cincinnati elevator bids were 6c over Chicago
March; new crop, 18c under July. Michigan white wheat mill bids were Chicago
March price to 20c over. Gulf bids on
soft red winter wheat were 58c over Chicago March, down 1c a bu.
The U.S.D.A. forecast the 2017 soft red
winter wheat carryover at 226 million
bus, unchanged from January. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis May, delivered Chicago\beyond cents
per bu
Feb. 10
- Change from -
Year
Premium
Feb. 3
Jan. 27
ago
Ordinary . . .
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
70
...
-5
80
13.5%
85 @ 90 +10 @ +15 +35 @ +20 85 @ 95
14%
90 @ 115
-
+10 @ 0
95
14.5%
110
+20 @ +10
+15
125
15%
135 @ 150 +15 @ -5 +15 @ -5
150
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Feb. 10
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
February
+130 March 140
March
+120 March 128
April
+98 May
105
May
+98 May
105
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
February
+58 March 62
March
+57 March 61
April
+42 May
51
May
+42 May
51

Year ago
bid

+98 March
+99 March
+93 May
+93 May

+50 March
+55 March
+55 May
+55 May

Basis Kansas City, cents per bu
130
110
90
70
50
30
F

M

A

N

Cash wheat
Feb. 10 - Change from -
For shipment
Bid Feb. 3
Jan. 27
No. 1 Soft White, Track, Portland
$ per bu
February
4.84
+.09
+.13
March
4.84
+.09
+.13
April
4.84
+.12
+.15
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
February
1.15
+.10
+.05
March
1.15
+.10
+.10
April
0.90
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
February
1.15
-.10
-.10
March
1.15
-.05
-.05
April
1.05
-.35
-.35

Year
ago
5.20
5.20
5.20
1.00
1.00
0.95
1.30
1.30
1.30

Milling & Baking News XFebruary 14, 2017 / 49
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Milling & Baking News - February 14, 2017

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