Milling & Baking News - August 29, 2017 - 33

X
Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 25c a bu higher last week.
The basis advanced 25c across the top
third of the protein scale and at 12% and
12.2% proteins. Premiums advanced
9@11c a bu from 11.4% through 11.8%
protein and 15c at 12.4% protein. Increasing mill and export elevator demand encountered only limited offers. Also, with
Kansas City wheat futures setting new
contract lows, the basis bore the main
burden in originating wheat.
The spread between the low and high
ends of premium ranges was widened to
15c from 10c the previous week mostly to
reflect the variable quality of wheat offered
on the spot market. In particular, wheat
with higher protein harvested across parts
of western Kansas and in South Dakota often had test weight below the minimum 60
lbs per bu required to grade No. 1.
Demand from intermountain and
West coast mills and from across the
Chicago gateway continued to provide
underlying support as did strong Gulf
bids. Local mills and resellers entered
the mix, all seeking at least minimal supply to sustain pipelines.
Farmers have sold about 60% of their
2017 production. With wheat futures falling in the last few weeks, they exhibited
no interest in marketing their remaining
supply. Elevators had ample wheat ownership but eyed wide carrying charges in
wheat futures, which argued for storing
and not aggressively loading wheat into
spot marketing channels.
Producers were considering how
much wheat to plant this fall for harvest
next year. When prices were higher, it
was assumed they would plant more
wheat than last year. With a recent tumble in prices, a significant expansion in
planted area was less certain.

No. 1 hard winter
Basis Kansas City Sept., cents per bu
Aug. 25 - Change from -
Premium Aug. 18 Aug. 11
Ordinary 2@ 17
-
-5 @ 0
11%
55@ 70
-
+35 @ +40
11.2% 55@ 70
-
+20 @ +25
11.4% 85@ 100 +10@ +10 +22 @ +27
11.6% 101@ 116 +11@ +11 +34 @ +39
11.8% 104@ 119 +9@ +9 +29 @ +34
12% 125@ 140 +25@ +25 +45 @ +50
12.2% 125@ 140 +25@ +25 +41 @ +46
12.4% 125@ 140 +15@ +15 +41 @ +46
12.6% 135@ 150
-
+45 @ +50
12.8% 185@ 200
-
+55 @ +60
13% 230@ 245 +25@ +25 +50 @ +55
13.2% 230@ 245 +25@ +25 +50 @ +55
13.4% 230@ 245 +25@ +25 +50 @ +55
13.6% 230@ 245 +25@ +25 +50 @ +55
13.8% 230@ 245 +25@ +25 +50 @ +55
14% 240@ 255 +25@ +25 +50 @ +55
bakingbusiness.com / world-grain.com

Year
ago
-25 @ -15
12 @ 22
16 @ 26
34 @ 44
35 @ 45
40 @ 50
59 @ 69
59 @ 69
59 @ 69
59 @ 69
89 @ 99
130 @ 140
130 @ 140
130 @ 140
140 @ 150
140 @ 150
140 @ 150

The U.S. Department of Agriculture's
regional office in Austin, Texas, indicated farmers in the Texas Northern High
Plains have begun to seed winter wheat.
Growers in Colorado and Nebraska typically begin to seed winter wheat at the
end of August, and Kansas winter wheat
planting typically begins around Sept. 10.
Gulf bids on 12%-protein hard red
winter wheat for August were 165c over
K.C. September, up 5c.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis were 25c a bu
higher to 5c lower last week. Wheat offers
on the spot market were limited with growers and elevators fully engaged with harvesting, hauling and storing spring wheat.
Farmer sales across the scale were light.
Given declining prices, producers seemed
to deliver what they had committed to sell
before the harvest but not much more.
Mill demand wasn't pressing. Mills
seemed to have adequate coverage for
the next few weeks and turned to the
spot market only in the event there were
gaps in pipelines to fill. Indications were
there recently were mill inquiries for
wheat coverage into January-March, but
there were no confirmed transactions.
The U.S.D.A. indicated the spring
wheat harvest in the six principal producing states as of Aug. 20 was 58%
completed compared with 40% a week
earlier and 51% as the recent five-year
average for the date. Combining was
52% completed in North Dakota (45% as
the average for the date), 88% in South

Dakota (74%), 42% in Minnesota (62%),
66% in Montana (45%), 49% in Idaho
(53%) and 62% in Washington (57%).
Spring wheat condition in the six states
continued to inch higher week over
week and was 34% good to excellent
(33% a week earlier), 24% fair (25%) and
42% poor to very poor (42%). Minnesota
stood out from other states with its spring
wheat rated 86% good to excellent.
The North Dakota Wheat Commission in its weekly crop progress report
observed that North Dakota yields have
been variable with western producers
reporting anywhere from less than 10
bus per acre to as high as 30 bus per acre
from fields that weren't abandoned. In
the eastern portion of the spring wheat
region, yields have been higher, ranging
from 35 to 70 bus per acre.
There were concerns recent rain may
have exacted a toll on quality of wheat
remaining to be harvested.
SOFT RED. St. Louis-area mill bids for
nearby were 10c under Chicago September to 15c over. Chicago mill bids for
nearby were 10c under Chicago September. Toledo mill bids for August-September were 15c over Chicago September. Elevator bids were the Chicago September
price. Cincinnati elevator bids were 10c
over Chicago September. Michigan white
wheat mill bids were 10@25c over Chicago September; soft red bids were 20c under September to 10c over. Gulf bids on
soft red winter wheat for nearby were 47c
over Chicago September, up 5c. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Sept., delivered Chicago\beyond cents
per bu Aug. 25
- Change from -
Year
Premium Aug. 18
Aug. 11
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
35 @ 49
13.5%
75
+5
+5
40 @ 50
14%
80 @ 110
-5 @ +25 +10 @ +30 60 @ 80
14.5%
105
+10 @ 0
+25 @ +15
60
15%
...
...
...
125 @ 155
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Aug. 25
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
August
+165 Sep.
175
September
+170 Sep.
180
October
+155 Dec.
165
November
+155 Dec.
165
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
August
+47 Sept.
55
September
+53 Sept.
64
October
+45 Dec.
55
November
+50 Dec.
55

Year ago
bid

...
+112 Sept.
+125 Dec.
+111 Dec.

+35 Sept.
+40 Sept.
+50 Dec.
+60 Dec.

Basis Kansas City, cents per bu
180
140
100
60
20
A

Cash wheat
Aug. 25 - Change from -
For shipment
Bid Aug. 18 Aug. 11
No. 1 Soft White, Track, Portland
$ per bu
August
5.25
+.07
-.25
September
5.25
+.07
-.25
October
5.35
+.17
-.15
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
August
1.18
+.18
+.18
September
1.18
+.08
+.13
October
1.00
-
+.15
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
August
0.80
-
-
September
0.90
-
-
October
1.10
-
-

Year
ago
4.65
4.70
4.86
1.10
1.15
1.15
1.00
1.15
1.20

Milling & Baking News XAugust 29, 2017 / 33

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Milling & Baking News - August 29, 2017

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