Milling & Baking News - March 13, 2018 - 42

Ingredient Week

Wheat Futures
Wheat futures dropped last week
from seven-month highs posted during
the week before. Futures were pressured
by revised U.S. and world wheat supply-and-demand forecasts for 2017-18
that were viewed to be somewhat bearish and worries that President Donald
Trump's imposition of tariffs on steel
and aluminum exported to the United
States may result in retaliation against
U.S. exports, including wheat exports.
The U.S. Department of Agriculture
on March 8 raised its forecast for the carryover of wheat on June 1, 2018, by 25
million bus, to 1,034 million bus, based
on a 25-million-bu reduction in its export
forecast for 2017-18 to 925 million bus. All
supply-side forecasts for the current year
were unchanged from February with the
total wheat supply at 3,076 million bus,
down 326 million bus, or 10%, from 3,402
million bus in 2016-17. With the exception
of the reduction to the export forecast,
all demand-side forecasts also were unchanged with food use at 955 million bus,
seed use at 62 million bus and feed and
residual use at 155 million bus.
The U.S.D.A. also raised its forecast
for 2017-18 world wheat ending stocks,
up 2.79 million tonnes from February
to a record 268.89 million tonnes. While

the U.S.D.A. lowered its forecast for U.S.
wheat exports this year, it raised its forecast for Russian wheat exports by 1.5
million tonnes, to a record 37.5 million
tonnes. Russian exports were forecast to
exceed U.S. exports by 33%.
The U.S.D.A. indicated net export
wheat sales during the week ended
March 1 totaled 391,500 tonnes for 201718, up noticeably from the previous
week and up 28% from the prior fourweek average. At the same time, Egypt
bought 175,000 tonnes of Russian wheat.
The recent rally in Chicago wheat futures
rendered U.S. soft red winter wheat uncompetitive in the Egyptian business.
Drought continued to grip the Southwest hard red winter wheat states of Kansas, Oklahoma and Texas. The U.S.D.A.
indicated 39% of the entire winter wheat
crop was growing in drought areas on
March 6, the same as a week earlier.
The U.S. two-week southern Plains
weather forecast remained mostly dry.
Some said the crop could go into late
March before a rain would become critical
for hard red winter wheat prospects. MBN

Millfeed
Price changes were mixed last week,
although there were more declines than
advances as values in principal markets

continued to decline from yearend premiums that held longer than expected.
"The resilience is astounding," an industry source said.
Price weakness in the East moved to the
Southwest, where nearby truck-delivered
material tumbled $15 a ton. Central states
and Southeast saw fewer loads headed
west as inter-region spreads narrowed.
Perhaps the greatest influence last week
was wintry weather. A snowstorm that
moved through the Upper Midwest complicated deliveries along interstates 90 and
29. Back-to-back nor'easters pummeled
the Northeast, leaving parts of a triangle
formed by Syracuse, Binghamton and Albany, N.Y., without power for days. After
the second storm, flour mills near the coast
needed several days to return online.
Many market participants pushed
to wrap up business in advance of this
week's American Feed Industry Association Purchasing and Ingredient Suppliers Conference in Fort Worth, Texas.
Millfeed was $87 a ton in Kansas City
and $92 in Minneapolis, on a rail basis,
compared with corn at $130 a ton and
sorghum at $115 a ton, both K.C. Gluten
feed was down $5 at $155 a ton, distillers' dried grain was up $5 at $165 a ton
and dehydrated alfalfa was steady at
$210 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu

Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

$5.90

Season's
Low

Mar. 9

- Change from -
Mar. 2 Feb. 23

Week's
High
Low

Year
ago

High

5.08
5.20½
5.37¼
5.54¼

-14c
+39c
-13¼c +35¾c
-13c +34½c
-11¾c +33½c

5.27¾
5.46½
5.62¼
5.77¾

5.08
5.18
5.34½
5.51¼

4.45¼
4.55½
4.67½
4.82½

6.13¾
6.19½
6.23
6.25½

(07-05-17)
(07-05-17)
(07-05-17)
(07-05-17)

4.10½
4.23¾
4.40¼
4.55¾

(12-11-17)
(12-13-17)
(12-11-17)
(12-12-17)

4.89
4.89¼
5.05½
5.22

-3c +36¾c
-10¾c
+25c
-9c +26½c
-6¾c +26½c

5.05
5.10¼
5.24¼
5.39½

4.86
4.86
5.01¾
5.18

4.22¾
4.40½
4.56¼
4.71

6.04¾
6.09¾
6.09½
6.12

(07-05-17)
(07-05-17)
(07-05-17)
(07-11-17)

4.10½
4.23¾
4.37
4.50½

(12-12-17)
(12-12-17)
(12-12-17)
(12-12-17)

6.15
6.17½
6.25½
6.32¼

+8½c +14¼c
-2¾c +4¼c
-2¼c +2½c
-2c +2¼c

6.27¼
6.30
6.38
6.43

6.15
6.13¼
6.21½
6.28½

5.36
5.38½
5.45¾
5.52¼

8.16
7.92¾
7.75¼
6.89

(07-05-17)
(07-05-17)
(07-05-17)
(07-05-17)

5.52
5.59¼
5.57¾
5.67

(09-26-16)
(12-15-16)
(12-09-16)
(10-04-16)

$5.40
$4.90
$4.40
$3.90
M

J

S
Previous Year

D
Current Year

Chicago wheat futures
March contract, $ per bu

$5.80

$4.80

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
87 @ 97
Southwest, f.o.b. truck
135 @ 145
Minneapolis
92 @ 102
Upper Midwest, f.o.b. truck 88 @ 98
Chicago West
105 @ 115
Central states, f.o.b truck 93 @ 103
Buﬀalo
83 @ 93
Southeast
105 @ 115
N. & S. California
119 @ 134
Los Angeles, f.o.b. truck 115 @ 130
Paciﬁc Northwest
100 @ 110
Upper Midwest, sacked
320
Wheat germ
220 @ 240
42 / March 13, 2018

- Change from -
Mar.
Mar. 2 Feb. 23
86 @ 96
-4@ -4 -19@ -19
135@ 145
-
-20@ -20
92 @ 102
-
-7@ -7
88 @ 98
-
-7@ -7
105@ 115
-
-7@ -7
85 @ 95
-
-12@ -12
77 @ 87 +3@ +3 -5@ -5
100@ 110 -5@ -5
-8@ -8
119@ 134
-
-
115@ 130
-
-
100@ 110 +5@ +5 +5@ +5

Milling & Baking News

Year
ago
75@ 85
113@ 123
78@ 88
74@ 84
91@ 101
99@ 109
89@ 99
100@ 110
121@ 136
117@ 132
85@ 95

$3.80

Apr.-June July-Sept. Oct.-Dec.
65@ 75
68@ 78 82@ 92
94@ 104 97@ 107 130@ 140
72@ 82
79@ 89 86@ 96
68@ 78
75@ 85 82@ 92
85@ 95
92@ 102 99@ 109
80@ 90
75@ 85 90@ 100
69@ 79
66@ 76 78@ 88
80@ 90
80@ 90 90@ 100
114@ 129 114@ 129
...
110@ 125 110@ 125
...
95@ 105 99@ 109 103@ 113

F

M

A
Previous Year

N
Current Year

Minneapolis wheat futures
March contract, $ per bu
$8.20
$7.20
$6.20
$5.20
$4.20
M

J

S
Previous Year

D
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - March 13, 2018

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