Milling & Baking News - March 24, 2020 - 66

Ingredient Week

Wheat Futures
Wheat futures advanced last week.
While concerns over the rapid global
spread of the coronavirus pandemic
weighed heavily on equity markets with
recession viewed as increasingly likely,
wheat futures strengthened on increased
foreign and domestic demand. Kansas
City and Chicago wheat futures led the
way higher with Minneapolis futures
pulling up the rear but still posting
gains. KC and Chicago wheat futures
traded to the highest levels since Feb. 24.
Through much of the week, there were
hints that recent low prices piqued the interest of foreign buyers, especially China.
This interest was confirmed with large
purchases of US wheat by South Korean
millers, and on March 20, the US Department of Agriculture confirmed that China
purchased 340,000 tonnes of US hard red
winter wheat for delivery in 2020-21. It
was the first Chinese wheat purchase
since the phase one agreement with the
United States came into effect Feb. 14, and
the first Chinese purchase to feature hard
red winter wheat since 2017.
Several other major wheat importers
made large purchases last week. While
the United States wasn't expected to capture a large share of the North African

business, the affirmation of continuing
world demand for wheat even in the face
of the attention on the coronavirus was
viewed as supportive to wheat futures.
European Union wheat prices exhibited
a firmer tone perhaps because of estimates
suggesting a smaller-than-expected 2020
EU crop, and a crop that would be smaller
than that harvested in 2019. Russian wheat
prices declined for the seventh consecutive week, but this resurrected talk about
Russia limiting wheat exports.
Expanding domestic demand for
grain-based foods, including wheat
products, because of consumer buying
changes relating to weathering the coronavirus crisis also gave futures a boost.
The USDA indicated net export sales
of wheat for delivery in 2019-20 during
the week ended March 12 totaled 338,300
tonnes, down 25% from a week earlier
and down 21% from the prior four-week
average. The aggregate was toward the
low end of trade expectations. MBN

Millfeed
Nearby prices were unchanged in most
areas, but weaker in spots, such as Kansas City and Minneapolis. The market
was almost entirely driven by flour mill
grind and logistics, rather than demand

Wheat futures

Kansas City wheat futures

$ per bu; change in cents per bu

May contract, per bu

- Change from -
Mar. 13 Mar. 6

Season's
Low

$6.50

Week's
High
Low

Year
ago

High

4.69
+37½c +22¾c
4.72½
+34c
+19c
4.79¾ +32¼c +16¾c
4.90¾ +29¾c +14¾c

4.77¼
4.80½
4.87¼
4.97¾

4.20
4.27¼
4.37¼
4.51

4.45
4.53½
4.65
4.84½

6.52¼
6.40
6.29¼
6.59½

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

4.08¾
4.19
4.31¾
3.81

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

5.39¼ +33¼c +23½c
5.35¾ +28¾c
+19c
5.38¼ +25¼c +14¼c
5.46¾
+23c +11½c

5.47
5.42¼
5.43¾
5.50¾

4.91¾
4.94¼
5.00¾
5.12

4.66
4.70¾
4.79½
4.94¼

6.34½
6.19
6.19
6.34½

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

4.63½
4.18½
4.76¾
4.42¼

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

Mar. 20
Kansas City
May
July
September
December
Chicago
May
July
September
December
Minneapolis
May
July
September
December

for midds, which remained mostly lackluster amid buyer uncertainty that kept
them firmly in the hand-to-mouth camp.
However, there were pockets of steady
feed demand, a trader said, such as in the
Southwest, where softness was attributed
to more grind. Price spreads there cut off
most inbound wheat midds from other
regions and "frankly areas to the north
needed that as an outlet," the trader said.
The Central states market was tight
nearby. Trade was somewhat illiquid in
the region due to uncertainty: "These
are markets none of us have ever experienced," one trader said.
Looking ahead, merchandisers and
traders expected overall lengthy runtimes
with a caveat: "Geographically we've
changed who's running and who isn't
because of their customer base," a trader
said. "On one hand you're going to get a
rush of flour made for groceries, but on the
commercial side, restaurants, cafeterias,
demand for that is going to be slower."
Millfeed was $80 a ton in Kansas City
and $94 in Minneapolis, on a rail basis,
compared with corn at $139 a ton and sorghum at $124 a ton, both K.C. Corn gluten
feed was $140 a ton, dried distillers' grain
was $168 a ton and dehydrated alfalfa
was $300 a ton, all K.C. and all steady. MBN

$5.90
$5.30
$4.70
$4.10
$3.50

5.21
+13c
5.29¾ +11½c
5.38¼ +9¾c
5.50½ +6¾c

-4¼c
-5¼c
-6c
-7½c

5.29¾
5.37½
5.45½
5.57½

5.03
5.13½
5.24¾
5.40¼

5.72¼
5.70¾
5.74¾
5.85¾

6.72
6.75
6.08
6.73

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

5.03
5.06
5.25¾
4.86½

(03-12-20)
(04-30-19)
(03-12-20)
(09-03-19)

M

J

S
Previous Year

D
Current Year

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

Bulk middlings

$4.80

$ per ton, delivered rail unless noted
Spot
Kansas City
80 @ 95
Southwest, f.o.b. truck
120 @ 130
Minneapolis
99 @ 109
Upper Midwest, f.o.b. truck 95 @ 105
Chicago West
112 @ 122
Central states, f.o.b truck 100 @ 110
Buﬀalo
100 @ 110
Southeast
100 @ 110
N. & S. California
134 @ 149
Los Angeles, f.o.b. truck 130 @ 145
Paciﬁc Northwest
115 @ 125
Upper Midwest, sacked
320
Wheat germ
210 @ 230
66 / March 24, 2020

- Change from - Year
Mar.
Mar. 13 Mar. 6
ago
Apr.
80 @ 95 -10@ -5
-7@ -2 100@ 110 75@ 90
120@ 130
-
-
135@ 145 110@ 120
94 @ 104 -5@ -5
-
89@ 99 86@ 96
90 @ 100 -5@ -5
-
85@ 95 82@ 92
107@ 117 -5@ -5
-
102@ 112 99@ 109
100@ 110
-
+17@ +17 105@ 115 90@ 100
100@ 110
-
+10@ +10 100@ 110 95@ 105
95 @ 105
-
+5@ +5 105@ 115 90@ 100
134@ 149
-
-
129@ 144 134@ 149
130@ 145
-
-
125@ 140 130@ 145
115@ 125
-
-
100@ 110 110@ 120

Milling & Baking News

$4.30
M

Apr.-June
60@ 75
105@ 115
79@ 89
75@ 85
92@ 102
95@ 105
75@ 85
90@ 100
129@ 144
125@ 140
100@ 110

July-Sept.
65@ 75
110@ 120
84@ 94
80@ 90
97@ 107
90@ 100
80@ 90
90@ 100
124@ 139
120@ 135
100@ 110

J

S

Previous Year

D
Current Year

Minneapolis wheat futures
May contract, per bu
$6.80
$6.10
$5.40
$4.70
M

J
Previous Year

S

D
Current Year

bakingbusiness.com / world-grain.com
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Milling & Baking News - March 24, 2020

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