Milling & Baking News - February 26, 2019 - 41

Ingredient Week
Cash Wheat

HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
5@20c a bu higher last week. The widest
upward adjustments were posted from
11% through 11.6% proteins. The basis
was flat at 135@150c over the K.C. March
at all levels except ordinary wheat. The
flat basis indicated demand was equal
for wheat of virtually any protein. This,
in turn, reflected the higher average protein in the 2018 crop compared with the
previous couple of years when hard red
winter wheat had low average protein.
Business in to-arrive wheat was constrained by concerns over escalating costs
of rail freight. Indications were rail car
values in the secondary freight market for
March through April and even May were
quoted at $3,000 to $4,000 over tariff.
Members of the Wheat Quality Council met in Kansas City for their annual
meeting Feb. 20-21, many braving the elements as yet another strong winter storm
rolled across central and eastern Kansas.
Last year, the annual meeting was convened as drought held the hard red winter wheat belt in a tight grip. Conditions
this year could hardly be more different
with virtually the entire region, from the
northern reaches and southward through
Oklahoma and parts of Texas, having received adequate to surplus moisture during the winter thus far.
The U.S. Department of Agriculture,
based on its weekly analysis of the U.S.
Drought Monitor, indicated that Kansas wheat fields remained drought free.
Oklahoma and Nebraska wheat fields
also were drought free. Six per cent of
Texas winter wheat was growing in areas of moderate drought, and 11% of
Colorado wheat was growing in moderate drought and 1% in severe drought.
Of the hard red winter wheat states,
Texas provided a weekly update to its

No. 1 hard winter
Basis Kansas City Mar., cents per bu
Feb. 22 - Change from -
Premium Feb. 15 Feb. 8
Ordinary 115@ 130 +5 @ +5 +5 @ +5
11%
135@ 150 +20 @ +20 +20 @ +20
11.2% 135@ 150 +19 @ +19 +19 @ +19
11.4% 135@ 150 +15 @ +15 +15 @ +15
11.6% 135@ 150 +14 @ +14 +15 @ +15
11.8% 135@ 150 +5 @ +5 +15 @ +15
12%
135@ 150 +5 @ +5 +15 @ +15
12.2% 135@ 150 +5 @ +5 +15 @ +15
12.4% 135@ 150 +5 @ +5 +13 @ +13
12.6% 135@ 150 +5 @ +5 +13 @ +13
12.8% 135@ 150 +5 @ +5 +5 @ +5
13%
135@ 150 +5 @ +5 +5 @ +5
13.2% 135@ 150 +5 @ +5 +5 @ +5
13.4% 135@ 150 +5 @ +5 +5 @ +5
13.6% 135@ 150 +5 @ +5 +5 @ +5
13.8% 135@ 150 +5 @ +5 +5 @ +5
14%
135@ 150 +5 @ +5 +5 @ +5
bakingbusiness.com / world-grain.com

Year
ago
80@ 95
105@ 120
120@ 135
125@ 140
126@ 141
135@ 150
145@ 160
145@ 160
160@ 175
185@ 200
185@ 200
185@ 200
185@ 200
185@ 200
185@ 200
185@ 200
185@ 200

wheat crop's progress and condition.
The Texas wheat crop as of Feb. 17
was rated 3% excellent, 27% good, 42%
fair, 20% poor and 8% very poor. The
U.S.D.A.'s Southern Plains Regional
Field Office in Austin, Texas, commented, "In general, warmer temperatures
improved growth of small grains across
the state. Winter wheat in the Plains
was in need of moisture. Some wheat
in the Cross Timbers showed signs of
barley yellow dwarf virus due to excessive moisture. Winter wheat was being
irrigated in South Texas."
Salina wheat bids were 20c under K.C.
March; new crop, 10c under July. Hutchinson wheat bids were 15c under K.C. March;
new crop, 5c under July. Wichita elevator
bids for nearby were 10c under K.C. March;
new crop, 15c under July. Gulf bids on
12%-protein hard red winter wheat for
nearby were 167c over K.C. March, up 5c.
HARD SPRING. Premiums on hard red
spring wheat dropped 30@70c a bu last
week. Wide swings in basis levels have
characterized trading in the past few
weeks, but last week, the tone was unmistakably defensive. Recently, mills supported the basis to the extent wheat was required to sustain pipelines thinned by delayed shipments. This they accomplished
in some cases by purchasing truck wheat.
There has been some double-buying as a
hedge against delayed shipments, so when
wheat was offered in greater volumes than
required on the spot rail market, as was the
case last week, mills pulled back.

No. 1 hard spring

Basis Minneapolis Mar., delivered Chicago\beyond cents
per bu Feb. 22
- Change from -
Year
Premium
Feb. 15
Feb. 8
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
135
...
...
...
13.5%
110
-55
-50
95
14%
125 @ 145 -55 @ -35 -35 @ -15
145
14.5%
115
-35 @ -50
...
165
15%
110 @ 150 -70 @ -30 -10 @ +15
185
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers

For
shipment

Feb. 22
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
February
+167 March 177
March
+165 March 175
April
+154 May
160
May
+154 May
160
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
February
+110 March
...
March
+100 March 107
April
+90 May
105
May
+90 May
105

Year ago
bid

+235 March
+225 March
+200 May
+200 May
+72 March
+70 March
+55 May
+55 May

Rail shipments across the northern
Plains were slowed as cold weather and
occasional heavy snow continued. Shipments were running about a week to
10 days behind schedule, and a couple
weeks behind in the case of shipments
from Canada.
Northern Plains farmers recently sold
some wheat, but sales shut off as Minneapolis wheat futures tumbled.
SOFT RED. Stormy weather patterns
persisted across key soft red winter
wheat growing areas last week. Northern portions of the Central states received additional snow, and the Delta
states and Southeast saw additional
heavy rainfall. Soggy conditions east
of the Missouri river suggested spring
planting may be slow going this year.
Mill bids were little changed from the
previous week, but a spike in export elevator bids suggested some export business
may be underway. St. Louis-area mill bids
for nearby were 25c to 30c over Chicago
March, unchanged. Chicago mill bids
were 10c over Chicago March, unchanged.
Toledo mill bids for nearby were 15c over
Chicago March, unchanged; new crop, 10c
over July. Elevator bids were 5c under Chicago March, unchanged. The Cincinnati
elevator was not taking wheat nearby; the
new crop bid was the Chicago July price.
Michigan white wheat mill bids were 5c
over Chicago March; soft red wheat mill
bids also were 5c over March. Gulf bids on
soft red winter wheat for February were
110c over Chicago March, 17c higher. MBN

No. 1 hard winter premiums, 12.2%

Basis Kansas City, cents per bu
182
142
102
62
F

Cash wheat
Feb. 22 - Change from -
For shipment
Bid Feb. 15 Feb. 8
No. 1 Soft White, Track, Portland
$ per bu
February
...
...
...
March
6.32
-.05
-.08
April
6.32
-.03
-.08
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
February
1.80
+.20
+.25
March
1.75
+.05
+.10
April
1.75
+.10
+.15
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
February
1.20
+.25
+.25
March
1.20
+.06
+.05
April
1.15
+.06
+.05
Milling & Baking News

Year
ago
5.64
5.64
5.64
1.70
1.70
1.55
1.35
1.30
1.20

February 26, 2019 / 41

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Milling & Baking News - February 26, 2019

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