Milling & Baking News - November 6, 2018 - 42

Ingredient Week

Wheat Futures
Wheat futures traded both sides of unchanged last week before closing with minor, mixed changes. Futures were weaker
at midweek but advanced toward the
week's end in sympathy with surging soybean futures. The latter market rallied in response to President Donald Trump's tweet
concerning a call he had with Chinese President Xi Jinping. The president said trade
was discussed, and soy complex futures
surged in the hope the conversation might
lead to more productive efforts to end the
tariff war between the two nations.
There were other factors supportive to
wheat last week. First, there was a constructive weekly export sales report. The
U.S. Department of Agriculture indicated
net export sales of wheat during the week
ended Oct. 25 totaled 582,500 tonnes for
delivery in 2018-19, up 32% from a week
earlier and up 41% from the prior fourweek average. Japan was the largest buyer
for the week at 120,700 tonnes, but Egypt's
first purchase of U.S. wheat in more than a
year attracted the most attention. Egypt in
a private transaction bought 50,000 tonnes
of U.S. hard red winter wheat. Indications
were Egypt's grain purchasing agency
subsequently bought (on Oct. 26) 60,000
tonnes of U.S. soft red winter wheat; at
the same time, Egypt purchased 410,000

tonnes of wheat from Black Sea nations.
The value of the dollar took a hit on
Nov. 1. The drop ended, at least temporarily, an ascent that began in mid-October and that made importing wheat from
the United States more expensive than it
otherwise would have been.
Bullish sentiments in wheat futures
were tempered, though, by the heavy
world supply and no indication that
a much-anticipated limit on Russian
wheat exports was imminent.
The U.S.D.A. in its Crop Progress report
indicated winter wheat planting by Oct. 28
was 78% completed compared with 72%
a week earlier and 85% as the recent fiveyear average for the date. Winter wheat
emergence was 63% compared with 53% a
week earlier and 67% as the average. And
in its first winter wheat condition assessment of the season, the U.S.D.A. rated 53%
of winter wheat crop good to excellent
compared with 52% a year earlier. Fair,
poor and very poor ratings also were close
to those of a year ago. MBN

Millfeed
Prices mostly were steady last week.
The Mississippi River served as a rough
dividing line between ongoing heavy
supplies in the Southwest and tighter
markets in Central states and Northeast,

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu
Nov. 2
Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

where the first signs of increased autumn feed demand were noted.
Lackluster usage in Texas, Oklahoma
and other areas that remained green after
extensive recent rains followed by mild
temperatures left the Southwest brimming
with material. Buyers were reluctant to
pay a premium for deferred periods with
so much inventory available cheaper on
the spot market. One trader noted a psychological effect: "Values were so high for
so long (spring through early summer)
and now we're paying the price for it."
Central states supply tightened as
flour mill runtimes declined, partly on
a downturn in flour demand, but also
after a Toledo-area mill experienced unexpected breakdowns.
Northeast saw signs of life after trailing other major millfeed markets for
most of the year. Runtimes began to tail
off slightly - attributed by one trader to
inconsistent needs of flour buyers - and
nearby orders for midds picked up.
Millfeed was $80 a ton in Kansas City
and $84 in Minneapolis, on a rail basis,
compared with corn at $128 a ton in K.C.,
where there was no bid on sorghum.
Corn gluten feed was $5 firmer at $165
a ton while distillers' dried grain and dehydrated alfalfa were steady at $145 and
$255 a ton, respectively, all K.C. MBN

- Change from -
Oct. 26 Oct. 19

Week's
High
Low

Year
ago

High

Season's
Low

$6.50
$6.00

5.04¼
5.28
5.41¼
5.48½

+4c
+1¼c
+1c
-½c

-12c
-12¾c
-13c
-11¾c

5.10¼
5.36
5.49
5.57

4.84½
5.10½
5.24¼
5.32¾

4.26¾
4.44½
4.58
4.74¾

6.42
6.44½
6.54
6.40

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

4.78¼
4.94
5.05
5.08½

(12-12-17)
(12-02-17)
(12-12-17)
(12-12-17)

5.08¾
5.24
5.35¾
5.42¾

+3½c
-¼c
-1c
-¾c

-6c
-10¼c
-11¼c
-10c

5.15
5.33
5.45
5.51

4.90
5.07½
5.20
5.26½

4.25¾
4.44½
4.57½
4.71

6.22
6.27½
6.30
6.19

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

4.68¼
4.82¼
4.90¾
4.95½

(12-12-17)
(12-12-17)
(12-12-17)
(01-16-18)

$5.50
$5.00
$4.50
$4.00

5.80½
5.88¼
5.96
6.03½

+2¾c
+2¼c
+2c
+1¾c

-8¼c
-10¼c
-8¾c
-8c

5.89½
5.97
6.04
6.08½

5.65¾
5.76¾
5.85¾
5.94¼

6.24¾
6.38½
6.46¼
6.49¼

6.89
6.85¾
6.72
6.75

(07-18-17)
(07-18-17)
(05-29-18)
(05-29-18)

5.42¼
5.59
5.70
5.81

(07-12-18)
(07-12-18)
(07-12-18)
(07-02-18)

N

F

M

Previous Year

A
Current Year

Chicago wheat futures
December contract, $ per bu
$6.00
$5.50
$5.00

Bulk middlings

$4.50

$ per ton, delivered rail unless noted
Spot
Kansas City
80 @ 90
Southwest, f.o.b. truck
110 @ 120
Minneapolis
84 @ 94
Upper Midwest, f.o.b. truck 80 @ 90
Chicago West
97 @ 107
Central states, f.o.b truck 88 @ 98
Buﬀalo
80 @ 90
Southeast
90 @ 100
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 / November 6, 2018

- Change from - Year
Nov.
Oct. 26 Oct. 19
ago
Dec.
85 @ 95
-
+5@ +5 84@ 94 90@ 100
115@ 125
-
+5@ +5 115@ 125 130@ 140
89 @ 99
-
+5@ +5 87@ 97 99@ 109
85 @ 95
-
+5@ +5 83@ 93 95@ 105
102@ 112
-
+5@ +5 100@ 110 107@ 117
93 @ 103 +3@ +3 +19@ +19 85@ 95 95@ 105
83 @ 93 +6@ +6 +15@ +15 73@ 83 87@ 97
95 @ 105
-
+2@ +2 80@ 90 100@ 110
124@ 139
-
+5@ +5 114@ 129 127@ 142
120@ 135
-
+5@ +5 110@ 125 123@ 138
100@ 110
-
0@ +5 88@ 98 103@ 113

Milling & Baking News

$4.00
N

Jan.-Mar.
89@ 99
125@ 135
104@ 114
100@ 110
107@ 117
95@ 105
79@ 89
105@ 115
124@ 139
120@ 135
103@ 113

Apr.-June
59@ 69
100@ 115
79@ 89
75@ 85
92@ 102
72@ 82
60@ 70
90@ 100
119@ 134
115@ 130
95@ 105

F

M

Previous Year

A
Current Year

Minneapolis wheat futures
December contract, $ per bu
$7.80
$6.80
$5.80
$4.80
N

F

M

Previous Year

A
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - November 6, 2018

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