Milling & Baking News - January 12, 2021 - 41

Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were 21¢ a bu
higher to 15¢ lower last week. The inverse
in the cash hard red winter wheat market
was restored after a brief hiatus the previous week with 15¢ declines posted across
the top third of the protein scale. Highprotein supply was quoted 9¢ a bu below
wheat with protein from 12% through
12.8% and was quoted on par with or at
a discount to all other hard winter wheat
with the exceptions of ordinary wheat and
wheat with protein of 11% protein. The
inverse was in response to competitively
priced spring wheat, which has made inroads at several milling locations as a substitute for high-protein hard winter wheat
for flour blends requiring a protein boost.
Wheat shipments began to accelerate
with the beginning of the new year and as
weather moderated to allow more timely
rail car loading and inspection. Traders
noted loading also was facilitated by elevator employees returning to work after
COVID-19-related quarantines.
The increased shipments provided for
applications to contracts as well as additional offers on the spot market.
With mills largely comfortable with
pipelines for the first quarter and no
near-term logistical hang-ups in sight,
no major players were actively pressing
for forward wheat offers.
" All comes down to the ultimate buyer, the baker, hanging back, " a merchandiser commented. Ideas were bakers,
spooked by recent futures rallies, were
willing to go hand-to-mouth for a while
rather than paying up for a more substantial forward supply cushion.
Western Kansas producers were
pleased with good moisture from a recent snowstorm, but parched western
Nebraska remained mostly dry.
The US Department of Agriculture of-

No. 1 hard winter
Basis Kansas City March, cents per bu
Jan. 8 - Change from -
Premium Dec. 31 Dec. 24
Ordinary 111@ 121 +21 @ +21 +21 @ +21
11%
120@ 130
-
-
11.2% 130@ 140
-
-
11.4% 126@ 136 -14 @ -14 -24 @ -24
11.6% 126@ 136 -14 @ -14 -24 @ -24
11.8% 130@ 140 -10 @ -10 -20 @ -20
12%
135@ 145 -5 @ -5
-19 @ -19
12.2% 135@ 145 -5 @ -5
-15 @ -15
12.4% 135@ 145 -5 @ -5
-15 @ -15
12.6% 135@ 145 -5 @ -5
-15 @ -15
12.8% 135@ 145
-
-15 @ -15
13%
126@ 136 -15 @ -15 -15 @ -15
13.2% 126@ 136 -15 @ -15 -15 @ -15
13.4% 126@ 136 -15 @ -15 -15 @ -15
13.6% 126@ 136 -15 @ -15 -15 @ -15
13.8% 126@ 136 -15 @ -15 -15 @ -15
14%
126@ 136 -15 @ -15 -15 @ -15
bakingbusiness.com / world-grain.com

Year
ago
85@ 95
90@ 100
95@ 105
105@ 115
120@ 130
125@ 135
145@ 155
145@ 155
145@ 155
173@ 183
190@ 200
200@ 210
200@ 210
206@ 216
206@ 216
206@ 216
210@ 220

fice in Manhattan, Kan., said winter wheat
condition in that state has improved since
the last National Crop Progress report
was issued Nov. 30. Wheat condition as of
Jan. 3 was rated 6% excellent, 40% good,
37% fair, 12% poor and 5% very poor.
Ratings also improved in Nebraska but
declined in Colorado, South and North
Dakota and Montana.
Salina spot wheat bids were 15¢ under KC March; new crop, 15¢ under July.
Hutchinson spot wheat bids were 15¢ under KC March; new crop, 15¢ under July.
Wichita elevator bids for nearby were 15¢
under KC March; new crop, 17¢ under July.
Gulf bids on 12%-protein hard red winter wheat for nearby were 160¢ over KC
March; February-March, 161¢ over March.
HARD SPRING. Premiums on hard
red spring wheat in Minneapolis were
unchanged to 20¢ a bu lower last week.
Wheat movement was limited, but mills
seemed comfortable with current inventories and pipelines and did not press for
spot supplies. The basis was not expected to " fall out of bed, but there's very
little out there that makes me believe it's
going to go much higher quickly, " a merchandiser commented.
Spring wheat continued to move from
farms to country elevators amid mild Upper Midwest weather, but farmers were
not selling wheat aggressively. They had
other crops to sell, and federal pandemic
relief payments have been generous.
Eastern North Dakota bids on hard
red spring wheat have advanced to the

mid-$5-a-bu range with western North
Dakota bids in the low-$5 range. " With a
pretty good carry in the market, producers aren't really in a cash-flow crunch, so
they're in a position to price wheat based
on their objectives, " said Jim Peterson of
the North Dakota Wheat Commission.
Spring wheat stocks held in the twin
northern ports of Duluth, Minn., and Superior, Wis., on Jan. 3 totaled 18,764,000
bus, down 630,000 bus, or 3%, from a
week earlier but up 776,000 bus, or 4%,
compared with a year ago.
SOFT RED. Mill bids on soft red winter wheat were firm. St. Louis-area bids
on soft red winter wheat were 60¢ over
Chicago March; February-March, 60¢
over. Toledo mill bids through March
were posted at 10¢ over Chicago March.
Elevator bids through March were the
Chicago March price; April-May, the
Chicago May price; new crop, 5¢ under July. The Cincinnati elevator was
not accepting old crop wheat; new crop
supply was bid at 3¢ over Chicago July.
Michigan white wheat mill bids were
5¢ to 15¢ over Chicago March; soft red
winter wheat mill bids ranged from the
Chicago March price to 5¢ under. Gulf
bids on soft red winter wheat for nearby
were 115¢ over Chicago March, up 20¢.
The USDA said Illinois wheat conditions have declined sharply since the last
Crop Progress report in November. The
soft winter wheat crop there was rated
50% good to excellent on Jan. 3 compared with 79% in late November. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis March, delivered Chicago\beyond cents
per bu Jan. 8
- Change from -
Year
Premium
Dec. 31
Dec. 24
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
...
13.5%
110
-15
...
125
14%
130
-
-
120 @ 150
14.5% 100 @ 110 -10 @ -5
-20 @ -10
105
15%
120 @ 150 -20 @ 0
...
170
16%
150
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Jan. 8
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
January
+160 March 170
February
+161 March 171
March
+161 March 171
April
+160 May
170
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
January
+115 March 125
February
+105 March 120
March
+100 March 115
April
+100 May
115

Year ago
bid

+170 March
+175 March
+175 March
+170 May

+120 March
+120 March
+120 March
+115 May

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

A

J

O

Cash wheat
Jan. 8 - Change from -
For shipment
Bid Dec. 31 Dec. 25
No. 1 Soft White, Track, Portland
$ per bu
January
6.80
+.22
+.22
February
6.85
+.23
+.23
March
6.85
+.17
+.17
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
January
1.65
+.05
+.05
February
1.65
+.05
+.05
March
1.65
+.05
+.05
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
January
1.25
-
-
February
1.25
-
-
March
1.30
+.05
+.05
Milling & Baking News

Year
ago
6.10
6.25
6.28
1.45
1.45
1.50
1.35
1.40
1.45

January 12, 2021 / 41
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Milling & Baking News - January 12, 2021

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