Milling & Baking News - February 11, 2020 - 34

Ingredient Week

Wheat Futures
Wheat futures climbed higher last
week, rebounding from wide declines sustained the previous week. The advances
provided at least a temporary break, and
perhaps portended a turnaround, from the
downtrend initiated in mid-January.
Markets were reassessing their initial reactions to the deadly coronavirus
spreading across China. Some felt the
recent plunge in equity markets and agricultural futures may have been excessive given the state of knowledge about
the outbreak's possible effects on trade
and economic activity. The situation was
fluid, though, as illustrated by the drop
in equity markets at week's end.
Discussions centered on what U.S.
agricultural products China might buy
in fulfillment of promises made in the
signing of a phase one trade agreement that signaled at least a truce in
the lengthy U.S.-China trade conflict.
U.S. wheat could be included, but most
analysts said that possibility would be
strongest following the 2020 U.S. winter
wheat harvest.
For its part, China was said to have
sought "flexibility" in completing agricultural purchases due to the ongoing
battle to control the coronavirus outbreak

there. At the same time, while the United
States sold no wheat to China last week,
France did, adding some pressure to U.S.
wheat futures.
The U.S.D.A. reported net export sales
of U.S. wheat during the week ended
Jan. 30 totaled 338,600 tonnes, down 48%
from the previous week and down 35%
from the prior four-week average.
Advances in wheat futures were limited by the strengthening U.S. dollar,
which makes U.S. commodities more
expensive in export channels. The dollar
reached a four-month high.
Statistics Canada estimated Dec. 31, 2019,
Canadian all-wheat stocks at 24,982,000
tonnes, down 0.5% from 25,109,000 tonnes
a year earlier and compared with 24,236,000
tonnes in December 2017.
Traders eagerly awaited the release
on Feb. 11 of the U.S.D.A. World Agricultural Supply and Demand Estimates
report. MBN

Millfeed
Prices were $5 a ton higher to $10 lower. Advances last week were confined to
lesser-traded California markets. Most
other regions continued to weaken as
unrelentingly strong flour grind met
lackluster feed demand just as millfeed

Wheat futures

Kansas City wheat futures

$ per bu; change in cents per bu
Feb. 7
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

prices came down in an attempt to buy
its way back into feed formulations.
Some buyers returned to markets to
re-up supplies after sticking largely to
the sidelines since filling their bins in late
December. Others continued to push off
orders from week to week, adding more
supply into the market without any
readily apparent homes. Patient buyers
showed a willingness to remain in the
spot market and held off purchases as
prices weakened day by day.
New York prices showed some temporary strength after a mill was closed for a
period following a fatal accident a week
earlier. But Southeast customers' bins
were getting full, and few loads were
southbound from the Northeast.
Upper Midwest prices, which had resisted sharp declines due to consistent
snow cover, began to weaken along with
usage. Supply and demand in the region
settled into a rough equilibrium.
Millfeed was $83 a ton in Kansas City
and $84 in Minneapolis, on a rail basis,
compared with corn at $148 a ton in K.C.
where there was no bid on sorghum.
Gluten feed was $5 lighter at $165 a ton,
dried distillers' grains were steady at
$160 a ton and dehydrated alfalfa was
steady at $300 a ton, all K.C. MBN

March contract, per bu

- Change from -
Jan. 31 Jan. 24

Week's
High
Low

Year
ago

High

Season's
Low

$6.50
$5.90

4.72½
4.78½
4.85¼
4.93¼

+7c
+6c
+5¼c
+4½c

-13½c
-15c
-15½c
-15½c

4.77
4.83¼
4.90¼
4.98½

4.58½
4.65¾
4.73¼
4.82¼

4.94¼
5.01¼
5.09
5.19½

6.59
6.52¼
6.40
6.29¼

(08-06-18)
(08-06-18)
(08-07-18)
(08-06-18)

3.97½
4.08¾
4.19
4.31¾

(09-03-19)
(09-03-19)
(09-03-19)
(09-04-19)

5.58¾
5.56¾
5.57
5.62½

+5c
+4¼c
+4½c
+3½c

-14¾c
-15¾c
-16c
-15¾c

5.65½
5.62½
5.61½
5.67

5.46½
5.45¾
5.46½
5.52¾

5.17¼
5.19½
5.22¼
5.29¾

6.37
6.34½
6.19
6.19

(08-02-18)
(08-02-18)
(08-07-18)
(08-02-18)

4.57¾
4.63½
4.18½
4.76¾

(09-03-19)
(09-03-19)
(05-13-19)
(09-03-19)

$5.30
$4.70
$4.10
$3.50

5.35¾
5.45½
5.54¼
5.62¾

+2c
+2¼c
+2c
+1¾c

-11¾c
-11½c
-10¾c
-10¼c

5.41
5.50
5.58¾
5.66¾

5.30½
5.40½
5.50
5.58¾

5.68½
5.69
5.74½
5.80¼

6.73½
6.72
6.75
6.08

(08-07-18)
(05-29-18)
(05-29-18)
(06-03-19)

5.00¼
5.11½
5.06
5.31½

(09-03-19)
(09-03-19)
(04-30-19)
(09-03-19)

F

M

A

Previous Year

N
Current Year

Chicago wheat futures
March contract, per bu
$6.30
$5.80
$5.30

Bulk middlings

$4.80

$ per ton, delivered rail unless noted
Spot
Kansas City
83 @ 98
Southwest, f.o.b. truck
115 @ 125
Minneapolis
84 @ 94
Upper Midwest, f.o.b. truck 80 @ 90
Chicago West
97 @ 107
Central states, f.o.b truck 80 @ 95
Buﬀalo
85 @ 100
Southeast
90 @ 100
N. & S. California
134 @ 149
Los Angeles, f.o.b. truck 130 @ 145
Paciﬁc Northwest
115 @ 125
Upper Midwest, sacked
320
Wheat germ
200 @ 220
34 / February 11, 2020

- Change from -
Feb.
Jan. 31 Jan. 24
80 @ 95
-
-15@ -15
115@ 125 -5@ -5 -20@ -20
84 @ 94
-5@ -5 -25@ -25
80 @ 90
-5@ -5 -25@ -25
97 @ 107 -5@ -5 -25@ -25
80 @ 95
-5@ 0 -10@ -5
85 @ 100
-
-10@ -5
95 @ 105 -5@ -5
-5@ -5
139@ 154 +5@ +5 +5@ +5
135@ 150 +5@ +5 +5@ +5
115@ 125
-
-

Milling & Baking News

Year
ago
88@ 98
122@ 132
84@ 94
80@ 90
97@ 107
90@ 100
90@ 100
95@ 105
129@ 144
125@ 140
100@ 110

$4.30
F

Mar.
80@ 95
130@ 140
84@ 94
80@ 90
97@ 107
85@ 95
85@ 100
95@ 105
134@ 149
130@ 145
110@ 120

Apr.-June
63@ 73
120@ 130
79@ 89
75@ 85
92@ 102
80@ 90
80@ 90
90@ 100
134@ 149
130@ 145
100@ 110

July-Sept.
67@ 77
120@ 130
84@ 94
80@ 90
97@ 107
80@ 90
80@ 90
90@ 100
124@ 139
120@ 135
100@ 110

M

A

Previous Year

N
Current Year

Minneapolis wheat futures
March contract, per bu
$6.80
$6.10
$5.40
$4.70
F

M

A

Previous Year

N
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - February 11, 2020

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