Milling & Baking News - December 1, 2020 - 33

Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 10¢ a bu lower last week,
bringing to a halt a recent advance. The
widest losses were posted on wheat
with 12.2% protein and higher. Left unchanged was the basis on wheat with
protein below 11.4%. The KC March future became the basic contract at an 8¢
premium to the December future. Cash
market activity was slow before the holiday and shut down on Thanksgiving.
An expected narrow inverse emerged
with wheat with protein from 12.6%
through 12.8% quoted 3¢ a bu higher than
wheat with protein of 13% and higher.
With the exception of the lowest-protein
supply, the cash wheat basis was nearly
flat from 11.4% protein through the top of
the protein scale, signaling producers and
elevators that virtually all milling-quality
hard red winter wheat was valued about
equally, and no premium for delivering
higher-protein supply should be expected.
Merchandisers noted that recent
wheat shipments for application to contracts or offered on the spot market have
had protein well above the crop average
(11.6% for Kansas wheat and 11.9% as
the all-hard red winter wheat average).
The basis across the top half of the protein
scale was pressured by the availability of
competitively priced hard red spring wheat,
which encouraged certain mills to increase
spring wheat usage for blending with lower-protein hard red winter wheat supply to
manufacture blends for certain products.
Applications to November wheat contracts continued. Ideas were the recent
relative uptick in spot market arrivals
had millers' pipelines well appointed.
Discussions over to-arrive wheat continued with the spread between bids and
offers said to be narrowing.
Rail freight costs in the secondary

No. 1 hard winter
Basis Kansas City March, cents per bu
Nov. 27 - Change from -
Premium Nov. 20 Nov. 13
Ordinary 82@ 92
-
-
11%
99@ 109
-
-
11.2% 102@ 112
-
-
11.4% 137@ 147 -1 @ -1 +10 @ +10
11.6% 137@ 147 -1 @ -1 +10 @ +10
11.8% 137@ 147 -1 @ -1 +10 @ +10
12%
137@ 147 -3 @ -3
-2 @ -2
12.2% 137@ 147 -8 @ -8
-2 @ -2
12.4% 137@ 147 -8 @ -8
-2 @ -2
12.6% 138@ 148 -7 @ -7
-1 @ -1
12.8% 138@ 148 -7 @ -7
-1 @ -1
13%
135@ 145 -10 @ -10 -4 @ -4
13.2% 135@ 145 -10 @ -10 -4 @ -4
13.4% 135@ 145 -10 @ -10 -4 @ -4
13.6% 135@ 145 -10 @ -10 -4 @ -4
13.8% 135@ 145 -10 @ -10 -4 @ -4
14%
135@ 145 -10 @ -10 -4 @ -4
bakingbusiness.com / world-grain.com

Year
ago
96 @ 106
112 @ 122
113 @ 123
123 @ 133
123 @ 133
131 @ 141
141 @ 151
141 @ 151
141 @ 151
151 @ 161
171 @ 181
192 @ 202
192 @ 202
192 @ 202
192 @ 202
192 @ 202
192 @ 202

market were posted under tariff nearby
with the row crop harvest completed. But
railroad shipments continued to falter at
times. Ideas were railroads were short on
manpower following recent layoffs.
The US Department of Agriculture,
in its weekly Crop Progress report, said
Kansas winter wheat condition declined
from a week earlier and as of Nov. 22 was
rated 3% excellent, 26% good, 45% fair,
18% poor and 8% very poor. Elsewhere,
good-to-excellent ratings were 48% in
Oklahoma (55% a week earlier), 24% in
Texas (30%), 17% in Colorado (25%), 39%
in Nebraska (39%), 64% in South Dakota
(67%) and 85% in Montana (81%).
Drought conditions worsened in Kansas,
where 65% of the winter wheat crop was
growing in drought, according to the USDA's analysis of the most recent US Drought
Monitor. Three percent of Kansas wheat was
growing in extreme drought, 16% in severe
drought and 46% in moderate drought.
Drought also expanded in Texas and Oklahoma and continued to cover all winter
wheat areas in Colorado and Nebraska.
Salina spot wheat bids were 15¢ under KC Dec. Hutchinson spot wheat bids
were 15¢ under KC Dec. Wichita elevator
bids for nearby were 15¢ under KC Dec.
Gulf bids on 12%-protein hard red winter wheat for nearby were 146¢ over KC
March; January-March, 152¢ over March.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis were unchanged to 20¢ a bu higher last week. The
basis was unchanged only in the case of

15%-protein wheat. Premiums on wheat
with 13.5% and 14% protein advanced.
The basis close was set for the week the
day before Thanksgiving. There was no
new posting on Friday, Nov. 27.
Wheat delivered in Minneapolis ahead
of the break for Thanksgiving found willing buyers. Mills sought to keep pipelines
adequately filled in the face of some additional competition for spring wheat sought
for blending with lower-protein hard red
winter wheat to manufacture blends for
use in certain products and applications.
The Minneapolis Grain Exchange said
spring wheat stocks in the port cities of
Duluth, Minn., and Superior, Wis., on
Nov. 22 totaled 18,302,000 bus, down
1,572,000 bus from a week earlier.
SOFT RED. Mill bids on soft red winter
wheat were mostly unchanged. St. Louisarea bids on soft red winter wheat were
50¢ over Chicago Dec. Toledo mill bids
nearby were the Chicago December price;
December, 10¢ over. Elevator bids through
December were 20¢ under Chicago Dec.
The Cincinnati elevator was not accepting
old crop; the new crop was bid 3¢ under
Chicago July. Michigan white wheat mill
bids were 5¢ over Chicago Dec.; soft red
winter wheat mill bids were 5¢ under Chicago Dec. Gulf bids on soft red winter for
nearby were 94¢ over Chicago Dec.
The USDA said winter wheat good-toexcellent ratings on Nov. 22 were 51% in
Missouri (54% a week earlier), 70% in Illinois (66%), 63% in Indiana (63%), 72% in
Ohio (73%) and 74% in Michigan (64%). MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Dec., delivered Chicago\beyond cents
per bu Nov. 27
- Change from -
Year
Premium Nov. 20
Nov. 13
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
...
13.5% 150 @ 160 +20 @ +20 +15 @ +25
...
14%
145 @ 160 +15 @ +15 +20 @ +25
...
14.5%
125
. . . +25 @ +10 155 @ 175
15%
170
- +50 @ +10 175 @ 190
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Nov. 27
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
December
+146 March 156
January
+152 March 162
February
+152 March 162
March
+152 March 162
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
December
+94 Dec.
102
January
+94 March 101
February
+97 March 103
March
+99 March 105

Year ago
bid

+185 March
+178 March
+178 March
...

+103 Dec.
+105 March
+107 March
+108 March

Basis Kansas City, cents per bu
175
155
135
115
95
N

F

M

A

Cash wheat
Nov. 27 - Change from -
For shipment
Bid Nov. 20 Nov. 13
No. 1 Soft White, Track, Portland
$ per bu
November
5.97
-.08
-.23
December
6.09
-.11
-.16
January
6.22
-.18
-.08
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
November
1.45
-
-.15
December
1.50
-
-.10
January
1.50
-
-.05
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
November
1.25
-
-.15
December
1.25
-
-.10
January
1.15
-
-.15
Milling & Baking News

Year
ago
5.70
5.70
6.00
1.75
1.75
1.75
1.55
1.60
1.50

December 1, 2020 / 33
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Milling & Baking News - December 1, 2020

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