Milling & Baking News - September 11, 2018 - 50

Ingredient Week

Wheat Futures
Wheat futures dropped last week,
unable to resist downward momentum
amid a dearth of new persuasive supportive features.
Wheat futures advanced the previous
week largely on concerns Russia might
establish a cap on its 2018-19 wheat exports as low as 25 million tonnes compared with 32 million tonnes as the
current U.S. Department of Agriculture
forecast for Russian wheat exports this
year. Russian wheat exports in 2017-18
were a record 42 million tonnes.
Officials of the Russian agriculture ministry met with exporters on Sept. 3, but
after the meeting, they said there were no
plans to limit wheat exports, and European and U.S. wheat futures retreated. A similar scenario played out a few weeks back
with the ministry scheduling a meeting
with exporters, raising market concerns
Russian exports might be capped, but then
affirming it had no intention of limiting
Russian wheat sales abroad.
Meanwhile, export demand for U.S.
wheat remained lackluster. The U.S.D.A.
indicated net export sales of wheat for
delivery in 2018-19 during the week ended Aug. 30 totaled 379,800 tonnes, down
8% from the previous week and down
14% from the prior four-week average.

While the U.S.D.A. forecast 2018-19
wheat exports at 1,025 million bus, up
124 million bus from the 2017-18 outgo,
exports and undelivered sales of U.S.
wheat for 2018-19 through Aug. 30 were
running 25% behind the year-ago pace.
The U.S.D.A. assumed export demand
would pick up because of smaller exportable supplies in Russia and the European Union, but the current export
program remained disappointing.
Last week, Egypt purchased 60,000
tonnes of Russian wheat.
The 2018 wheat harvest was nearing its end. The U.S.D.A. indicated the
spring wheat harvest in the six principal
producing states was 87% concluded by
Sept. 2 compared with 75% as the recent
five-year average for the date.
Winter wheat planting was just underway in the hard red winter wheat states
with veteran crop analysts suggesting
farmers may plant up to 2 million acres
more to winter wheat this fall than they
did a year ago. MBN

Millfeed
After initially holding nearly steady
despite shorter runtimes over Labor Day
weekend, prices mostly fell $5@10 a ton
nearby as feed demand weakened during
a rain-soaked week in several markets.

Outside of a major Buffalo mill's weeklong fumigation and maintenance downtime, numerous flour mills clocked more
runtime over the long holiday weekend
than anticipated, especially in the Central
states and Chattanooga, Tenn., area.
At the same time, feed demand edged
down. An industry source said late-August values were "overdone," perhaps inducing end users to do without millfeed
and feed mixers to begin pre-rationing it
out of formulas. For others, pre-holiday
stockpiles proved sufficient. Rainfall revived some pastures to the relief of ranchers but led to cancellation concerns.
Though there were pockets of tightness
after Labor Day, Northeast supplies remained heavy, and values there continued
to lag other regions. Arbitrage was difficult
amid prime harvest days for vegetables
that beckoned drivers with premiums.
Strengthening runtimes at mills in Ohio
and other areas were expected to further
pressure September millfeed values.
Millfeed was $85 a ton in Kansas City
and $119 in Minneapolis, on a rail basis,
compared with corn at $122 a ton in K.C.,
where there was no bid on sorghum. Dehydrated alfalfa, distillers' dried grain
and corn gluten feed each were unchanged from a week earlier in K.C. at
$255, $150 and $155 a ton, respectively. MBN

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu

Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

$6.00

Season's
Low

- Change from -
Aug. 31 Aug. 24

Week's
High
Low

Year
ago

High

4.88½
5.14¾
5.36
5.48¾

-34½c
-38½c
-39c
-37c

-30¾c
-32c
-34¼c
-34c

5.11¾
5.49
5.71½
5.82½

4.88½
5.11½
5.34¼
5.47¼

4.15½
4.41½
4.59
4.72

6.25½
6.42
6.44½
6.54

(07-05-17)
(07-05-17)
(08-07-18)
(07-05-17)

4.55¾
4.78¼
4.83
4.83

(12-12-17)
(12-12-17)
(08-30-16)
(08-30-17)

4.86¼
5.11¼
5.31½
5.44¾

-32¼c
-34¼c
-34c
-33c

-28½c
-25¼c
-28c
-26¾c

5.07½
5.38¼
5.58½
5.72¼

4.86¼
5.07½
5.29¼
5.42¾

4.13¾
4.37¾
4.59¼
4.73½

6.12
6.22
6.27½
6.30

(07-11-17)
(07-11-17)
(08-02-18)
(08-02-18)

4.50½
4.68¼
4.82¼
4.90¾

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

5.55¼
5.70
5.86½
5.95¼

-28½c
-28¾c
-27c
-24¼c

-17½c
-20¼c
-19½c
-19c

5.73¾
5.95¾
6.09½
6.16¼

5.41¼
5.68¼
5.84¼
5.94¼

6.30¼
6.46¾
6.57
6.54¼

6.89
6.89
6.85¾
6.69½

(07-05-17)
(07-18-17)
(07-18-17)
(08-07-18)

5.23¾
5.42¼
5.59
5.70

(07-11-18)
(07-12-18)
(07-12-18)
(07-12-18)

Sept. 7

$5.50
$5.00
$4.50
$4.00
S

D

M
Previous Year

J
Current Year

Chicago wheat futures
September contract, $ per bu

$6.00
$5.50
$5.00

Bulk middlings

$4.50

$ per ton, delivered rail unless noted
Spot
Kansas City
85 @ 95
Southwest, f.o.b. truck
130 @ 140
Minneapolis
119 @ 129
Upper Midwest, f.o.b. truck115 @ 125
Chicago West
132 @ 142
Central states, f.o.b truck 95 @ 105
Buﬀalo
71 @ 81
Southeast
95 @ 105
N. & S. California
130 @ 145
Los Angeles, f.o.b. truck 126 @ 141
Paciﬁc Northwest
95 @ 105
Upper Midwest, sacked
320
Wheat germ
220 @ 240
50 / September 11, 2018

Sept.
85 @ 95
130@ 140
109@ 119
105@ 115
122@ 132
95 @ 105
71 @ 81
93 @ 103
125@ 140
121@ 136
98 @ 108

Milling & Baking News

- Change from -
Aug. 31 Aug. 24
-
-
-8@ -8 -16@ -16
-16@ -16 -16@ -16
-16@ -16 -16@ -16
-16@ -16 -16@ -16
-3@ -3
-7@ -7
+1@ +1 +1@ +1
-8@ -8 -22@ -22
-
-
-
-
-
-

Year
ago
58@ 68
80@ 90
79@ 89
75@ 85
92@ 102
67@ 75
60@ 70
60@ 70
109@ 124
105@ 120
85@ 95

$4.00

Oct.-Dec.
96@ 106
143@ 153
104@ 114
100@ 110
117@ 127
102@ 112
75@ 85
102@ 112
130@ 145
126@ 141
98@ 108

Jan.-Mar.
102@ 112
143@ 153
104@ 114
100@ 110
117@ 127
100@ 110
80@ 90
105@ 115
130@ 145
126@ 141
96@ 106

Apr.-June
65@ 75
105@ 115
79@ 89
75@ 85
92@ 102
80@ 90
65@ 75
86@ 96
114@ 129
110@ 125
85@ 100

S

D

M
Previous Year

J
Current Year

Minneapolis wheat futures
September contract, $ per bu
$7.80
$6.80
$5.80
$4.80
S

D

M
Previous Year

J
Current Year

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

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