Milling & Baking News - January 26, 2021 - 41

Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
25¢ a bu higher to 10¢ lower last week.
The widest gains were posted across the
top third of the protein scale, just barely
eliminating the inverse that had characterized the hard red winter wheat protein
scale for several weeks. At 150¢ over the
KC March wheat future, the high-protein
wheat basis was only 1¢ to 5¢ a bu higher
than premiums registered across the middle third of the protein scale. The sole loss
last week was posted at 11.2% protein.
Advances posted to the hard red spring
wheat basis in Minneapolis helped pave
the way for the stronger high-protein
hard red winter wheat premiums.
The longstanding inverse in the cash
hard red winter wheat basis reflected efforts to limit the inroads of competitively
priced spring wheat in the grist of mills
manufacturing flour requiring a protein
bump. Substitution of spring wheat for
hard red winter wheat continued, but the
cost advantage for doing so has decreased.
Recent farmer sales drawn out by the
extended rally in Kansas City wheat
futures left elevators with considerable
wheat ownership that they will want to
convert to cash at some point. But discussions with mills about contracts for
February-March or April-May have yet
to translate into new transactions.
Rail performance issues remained a
thorn in the sides of market participants,
a trader said. Ideas were the UP Railroad
was giving greater attention to providing
trains to head to ports for export, putting
domestic orders on a back burner.
Freight prices were on the rise for
shuttles and efficiency trains. " As soybean exports may be starting to slow
down, corn exports are starting to pick
up, " a merchandiser said.
Salina spot wheat bids were 15¢ un-

No. 1 hard winter
Basis Kansas City March, cents per bu
Jan. 22 - Change from -
Premium Jan. 15
Jan. 8
Ordinary 108 @ 118
-
-3@ -3
11% 120 @ 130
-
-
11.2% 120 @ 130 -10 @ -10 -10@ -10
11.4% 130 @ 140 +5 @ +5 +4@ +4
11.6% 130 @ 140 +5 @ +5 +4@ +4
11.8% 130 @ 140 +5 @ +5
-
12% 135 @ 145 +5 @ +5
-
12.2% 135 @ 145 +5 @ +5
-
12.4% 139 @ 149 +9 @ +9 +4@ +4
12.6% 139 @ 149 +9 @ +9 +4@ +4
12.8% 139 @ 149 +9 @ +9 +4@ +4
13% 140 @ 150 +25 @ +25 +14@ +14
13.2% 140 @ 150 +25 @ +25 +14@ +14
13.4% 140 @ 150 +25 @ +25 +14@ +14
13.6% 140 @ 150 +25 @ +25 +14@ +14
13.8% 140 @ 150 +25 @ +25 +14@ +14
14% 140 @ 150 +25 @ +25 +14@ +14
bakingbusiness.com / world-grain.com

Year
ago
75 @ 85
80 @ 90
85 @ 95
95 @ 105
105 @ 115
110 @ 120
135 @ 145
135 @ 145
135 @ 145
150 @ 160
165 @ 175
185 @ 195
185 @ 195
185 @ 195
206 @ 216
206 @ 216
210 @ 220

der 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, 15¢ under July.
Gulf bids on 12%-protein hard red winter wheat for nearby were 160¢ over KC
March; February-March, 160¢ over March.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis advanced
10¢ to 40¢ a bu last week. Despite the
basis strength, ideas were the market
was not craving large volumes of wheat.
" Mills are going hand-to-mouth right
now because of demand being off, " an
analyst said. " Mills are not chasing anything, don't need to push, and do not
want a lot of grain nearby. "
Ideas were millers would continue to
pick up spring wheat supplies for blending purposes where they are available at a
discount to high-protein hard red winter
wheat. Mostly, mills continued to signal
satisfaction with the existing flow of wheat.
Spring wheat stocks on Jan. 18 at the
ports of Duluth, Minn., and Superior,
Wis., totaled 17,544,000 bus, up 18,000 bus
from a week earlier but down 1,220,000
from Jan 3. Domestic buyers were behind
the drawdown in the last couple weeks as
the shipping season via the Great LakesSt. Lawrence Seaway ended earlier.
Recent snow events were relatively
mild, in line with the mostly benign winter weather so far this season.
Railroad performance was satisfactory, a trader said. The BNSF railroad

had mostly resolved issues that had them
slightly behind schedule in early January.
The private analytics firm IHS Markit
Agribusiness forecast 2021 other-spring
wheat plantings at 11.49 million acres
compared with 12.25 million acres in 2020.
SOFT RED. Mill bids on soft red winter
wheat were unchanged to 25¢ a bu lower. St. Louis-area bids on soft red winter
wheat through March were 40¢ over Chicago March, down 25¢; April-May, 40¢
over May, down 10¢. Toledo mill bids
through March were the Chicago March
price; April-May, the Chicago May price.
Elevator bids were 10¢ over Chicago
March; new crop, 5¢ over Chicago Sept.
The Cincinnati elevator was not accepting
old crop; new crop was bid 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 100¢ over Chicago March.
Cash wheat in small volumes continued to be drawn out by high wheat values
following December and January rallies
in wheat futures. Also, some additional
to-arrive business for the current quarter
has taken place, according to wheat buyers. Applications against contracts kept
pipelines flowing in good order.
Soft winter wheat under cover of snow
was in good shape in Michigan, a miller
said. " If we're going to get a mild winter
without a lot of really low temperatures,
we'll be in great shape, " he said. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis March, delivered Chicago\beyond cents
per bu Jan. 22
- Change from -
Year
Premium
Jan. 15
Jan. 8
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
...
13.5%
120
+30
+10
...
14%
125
+40 @ +10
-5
105 @ 135
14.5%
105
+25
+5 @ -5
105
15%
120 @ 155 +30 @ +15
0 @ +5 145 @ 160
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Jan. 22
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
January
+160 March 170
February
+160 March 170
March
+160 March 170
April
+155 May
165
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
January
+100 March 120
February
+95 March 115
March
+95 March 115
April
+100 May
115

Year ago
bid

+168 March
+170 March
+170 March
+170 May

+120 March
+118 March
+118 March
+117 May

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

A

J

O

Cash wheat
Jan. 22 - Change from -
For shipment
Bid Jan. 15 Jan. 8
No. 1 Soft White, Track, Portland
$ per bu
January
7.10
-
+.30
February
7.10
-
+.25
March
7.10
-
+.25
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
January
1.65
-
-
February
1.65
-
-
March
1.65
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
January
1.25
-
-
February
1.25
-
-
March
1.30
-
-
Milling & Baking News

Year
ago
6.10
6.25
6.28
1.45
1.45
1.50
1.35
1.40
1.45

January 26, 2021 / 41
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Milling & Baking News - January 26, 2021

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