Milling & Baking News - September 11, 2018 - 49

Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 7c a bu higher last week.
The firmer tone contrasted with the wide
declines posted the previous week. Until
Friday, the basis was unchanged with the
exception of a 4c-a-bu hike for ordinary
wheat. But at the week's end, mill demand
expanded for rail cars with 13%-protein
wheat, and the basis advanced 7c a bu
across the top third of the protein scale.
Before the late-week advance, there
was discussion about whether the cash
hard red winter wheat market soon may
become inverted. Last week's adjustment
ended the talk for now, but it was a fact
that mill demand recently has favored
lower-protein supply. During the initial
stages of the harvest, wheat offered on
the spot market had higher protein, reflecting the higher average protein of the
2018 crop compared with those harvested
in 2017 and 2016. Mills were able to build
inventories of higher-protein wheat from
the harvest, to the extent they began to
seek lower-protein wheat for blending.
Wheat was being loaded but mostly for
application against September contracts.
The Union Pacific was running about 20
days late in completing shipments. This
raised the prospect that shipments for
September contract applications may be
bunched up in the last half of the month.
Business in the to-arrive market was
more active with at least limited volumes
of wheat with 11% and 13% protein trading
for shipment in January-March and even
April-May. At the same time, it was difficult
to conduct business for October because the
fall crop harvest, which will be well underway by then, will command the attention of
elevators and transportation.
Seeding of the 2018 Kansas hard red
winter wheat crop has begun with planting
1% completed by Sept. 2, equal to both last

No. 1 hard winter
Basis Kansas City Sept., cents per bu
Sept. 7 - Change from -
Premium Aug. 31 Aug. 24
Ordinary 70@ 85 +4 @ +4 -6 @ -6
11%
91@ 106
-
-15 @ -15
11.2%
91@ 106
-
-15 @ -15
11.4%
91@ 106
-
-15 @ -15
11.6%
91@ 106
-
-15 @ -15
11.8%
91@ 106
-
-15 @ -15
12%
91@ 106
-
-15 @ -15
12.2%
91@ 106
-
-15 @ -15
12.4%
91@ 106
-
-15 @ -15
12.6%
91@ 106
-
-15 @ -15
12.8%
93@ 108
-
-13 @ -13
13%
100@ 115 +7 @ +7 -21 @ -21
13.2% 100@ 115 +7 @ +7 -21 @ -21
13.4% 100@ 115 +7 @ +7 -21 @ -21
13.6% 100@ 115 +7 @ +7 -21 @ -21
13.8% 100@ 115 +7 @ +7 -21 @ -21
14%
100@ 115 +7 @ +7 -21 @ -21
bakingbusiness.com / world-grain.com

Year
ago
-10 @ 5
50 @ 65
66 @ 81
92 @ 107
115 @ 130
120 @ 135
131 @ 146
131 @ 146
145 @ 160
155 @ 170
160 @ 175
205 @ 220
205 @ 220
205 @ 220
205 @ 220
205 @ 220
261 @ 276

year and the five-year average for the date.
Planting was 1% completed in Nebraska,
2% in Colorado and 1% in South Dakota.
Late-summer rain provided excellent
planting conditions across most of Kansas. The U.S. Department of Agriculture
indicated, based on analysis of the Sept.
4 U.S. Drought Monitor, that only 11% of
Kansas wheat areas were in drought (2%
severe and 9% moderate). Nebraska was
drought-free. Problem areas were Texas,
with 76% of wheat areas in drought, and
Oklahoma, with 42% of wheat areas in
drought. At the same time, the latter
areas received good moisture late last
week and were forecast to receive more.
Plains Grains, Inc., in its Sept. 7 harvest
summary, which will be its last weekly
summary of the season, indicated, on the
basis of 479 of 500 intended samples, that
the 2018 hard red winter wheat crop was
averaging 12.3% in protein compared with
12.4% a week earlier and 11.4% as the 2017
crop average. Test weight was averaging
61.1 lbs per bu compared with 61 lbs a week
earlier and 60.8 lbs last year. Falling number was averaging 371 seconds, unchanged
from the previous week and compared
with 367 seconds for the 2017 crop. The average grade of the 2018 crop was No. 1 hard
red winter, the same as the 2017 crop grade.
Gulf bids on 12%-protein hard red
winter wheat for September were 130c
over K.C. December. Salina truck bids at
terminal elevators were 45c under K.C.
HARD SPRING. Premiums on hard red
spring wheat were 15c a bu higher to 40c

lower last week. With the harvest in its
final stretch, merchandisers commented
farmers haven't sold much of the 2018
crop, perhaps not much more than about
10%. The rest of the crop was being
stored on farm. The recent downtrend in
wheat futures dampened enthusiasm to
sell, and many growers were preparing
machinery and bins for the soybean harvest, which will be underway in a couple
of weeks.
Mill demand for wheat was not pressing given earlier purchases of wheat to
be delivered on contract. Some mills
were seeking offers for wheat to be delivered as far forward as January-March.
The U.S.D.A. in its weekly Crop Progress report indicated 87% of the spring
wheat crop in the six key producing states
was harvested by Sept. 2 compared with
77% a week earlier and 75% as the recent
five-year average for the date.
SOFT RED. Mill bids on soft red winter
wheat were firm. St. Louis-area mill bids
for nearby were 10c under Chicago December. Chicago mill bids were 10c under
Chicago December. Toledo mill bids for
nearby were 5c under Chicago December; last-half October, 10c over December.
Elevator bids were 15c under Chicago
December. Cincinnati elevator bids still
were the Chicago September price. Michigan white wheat mill bids were 10c over
Chicago December; soft red bids were
10c under December. Gulf bids on soft
red winter wheat for September were 40c
over Chicago December. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Sept., delivered Chicago\beyond cents
per bu Sept. 7
- Change from -
Year
Premium Aug. 31
Aug. 24
ago
Ordinary . . .
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
55 @ 60
-5 @ -25 +7 @ -15
...
13.5%
55 @ 70
-5 @ -5
-8 @ -15 65 @ 70
14%
50 @ 95 -30 @ +15 -18 @ +5 80 @ 85
14.5%
50
-5 @ -20
-8
90
15%
55 @ 95 -40 @ 0
+6 @ +12 100 @ 120
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Sept. 7
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
September
+130 Dec.
135
October
+130 Dec.
140
November
+135 Dec.
145
December
+140 Dec.
150
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
September
+40 Dec.
47
October
+52 Dec.
57
November
+57 Dec.
62
December
+67 Dec.
75

Year ago
bid

+160 Dec.
+170 Dec.
+170 Dec.
+170 Dec.

+40 Dec.
+50 Dec.
+55 Dec.
+55 Dec.

Basis Kansas City, cents per bu
222
182
142
102
62
S

D

M

J

Cash wheat
Sept. 7 - Change from -
For shipment
Bid Aug. 31 Aug. 24
No. 1 Soft White, Track, Portland
$ per bu
September
5.95
-.10
-.19
October
6.04
-.06
-.13
November
6.10
-.03
-.10
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
September
1.00
-
-
October
1.10
-
-
November
1.15
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
September
0.90
+.05
+.05
October
0.90
+.10
+.10
November
0.95
+.05
+.05
Milling & Baking News

Year
ago
5.26
5.26
5.31
0.95
1.00
1.00
0.90
1.10
1.10

September 11, 2018 / 49
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - September 11, 2018

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