Milling & Baking News - April 6, 2021 - 42

Ingredient Week
Wheat Futures

Wheat futures posted mixed changes
last week but only after a wild ride. Futures traded lower early but surged at midweek in the wake of unexpectedly bullish
plantings and stocks reports for corn and
soybeans. Both corn and soybean futures
closed up their daily limits on Wednesday, pulling wheat futures, for which the
reports were not particularly supportive,
along for the ride. Futures turned lower
on Thursday, the week's final trading session before the Easter break, and Kansas
City futures dropped back into negative
territory for the week, as did Minneapolis
futures. Chicago wheat futures closed narrowly mixed. Wheat futures overall have
been in a downtrend since posting contract or recent highs on Feb. 24.
All three contracts traded to their lowest
levels since December during the week.
The recent sell-off in futures has had
producers closing the bin door, but
farmers had sold nearly all their 2020
crop at any rate. Remaining stocks were
said to be in strong hands. The basis
may have to do the work to keep the
pipeline full, observed market analyst
Joe Christopher. Hard red winter wheat
was being sold into feed markets in
western Kansas and eastern Colorado.

The US Department of Agriculture, in
its weekly Export Sales report, said during the week ended March 25 net export
sales of US wheat for delivery in 2020-21
totaled 250,100 tonnes, down 27% from
the previous week and down 22% from
the prior four-week average. Sales to
China increased by 130,000 tonnes.
The recent steady rise in the value of
the US dollar exerted a tug on agricultural
futures, including wheat, as well as other
commodities, including crude oil and gold.
World wheat prices dropped on better
US weather and lackluster world trade.
The USDA forecast the US all-wheat
planted area at 46.4 million acres in 2021,
above trade expectations and compared
with 44.3 million last year. Winter wheat
acres were estimated at 33.1 million versus trade expectations at 31.8 million
and 30.4 million last year. Spring wheat
acres were forecast at 11.7 million versus
11.6 million as expected and 12.3 million
last year. MBN

Millfeed

Prices were mixed. Most trading remained nearby as bid-offer spreads were
wide for deferred periods.
The central dynamic of the trading week
was shortened flour mill runtimes ahead

Wheat futures

Kansas City wheat futures

$ per bu; change in cents per bu

May contract, per bu

	
	 - Change from -		 Week's	
Year
	
Apr. 1	 Mar. 26	 Mar. 19	 High	
Low	
ago
Kansas City						
May	5.65	
-3¼c	-20½c	 5.87	 5.53	
4.72
July	
5.72	 -2½c	-19¼c	 5.91¾	 5.59½	4.78½
September	5.78¾	
-2¼c	-18¼c	 5.98	
5.66¼	 4.86½
December	 5.89	 -1¾c	-16¼c	 6.07½	 5.76	
4.99½
Chicago						
May	6.11	
-2¼c	 -16c	 6.31¾	 5.93¼	5.49¼
July	6.10½	 +1¼c	-8¾c	 6.28¾	 5.92¼	 5.45
September	6.12½	 +2½c	 -7c	6.28¾	 5.94	
5.47
December	6.18¾	
+2c	-7¾c	 6.34¾	 6.01	5.54¼
Minneapolis						
May	5.99½	 -14½c	-27½c	 6.31¾	 5.96¼	5.24½
July	
6.09	 -14¼c	-26½c	 6.41¾	 6.06	5.35½
September	6.17¾	 -13¼c	-24½c	 6.45	 6.15	
5.44
December	 6.29	 -11½c	-21¼c	 6.51½	 6.25¾	 5.55¼

Season's
High		Low	

$6.75

6.64	 (02-24-21)	 4.41¾	(08-07-20)
6.67	 (02-24-21)	 4.49¾	(08-07-20)
6.70¾	(02-24-21)	 4.59½	(08-07-20)
6.77	 (02-24-21)	 4.72¼	(08-07-20)
			
6.93	 (01-15-21)	 4.94¼	(06-26-20)
67¼	 (02-24-21)	 4.96¼	(06-26-20)
6.69½	(01-15-21)	 5.03¾	(06-26-20)
6.73	(01-15-21)	5.14	(06-26-20)
			
6.62	 (01-19-21)	 5.30¼	(08-17-20)
6.65¾	(01-19-21)	 5.40½	(08-12-20)
6.68	 (01-15-21)	 5.49¾	(08-12-20)
6.69	 (01-15-21)	 5.61½	(08-13-20)

$5.75
$5.25
$4.75
$4.25
A

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Current Year

Chicago wheat futures
May contract, per bu
$7.10
$6.70
$6.30
$5.50
$5.10

$ per ton, delivered rail unless noted

42 / April 6, 2021

$6.25

$5.90

Bulk middlings
Spot
Kansas City	
165	@	175
Southwest, f.o.b. truck	
225	@	245
Minneapolis	
179	@	189
Upper Midwest, f.o.b. truck	175	@	185
Chicago West	
192	@	202
Central states, f.o.b truck	 180	@	190
Buffalo	
155	@	165
Southeast	
175	@	185
N. & S. California	
159	@	174
Los Angeles, f.o.b. truck	 155	@	170
Pacific Northwest	
120	@	135
Upper Midwest, sacked		320	
Wheat germ	
210	@	230

of a long Easter weekend. Mills planned
three days of downtime on average with
a few locations shortening grind even further for maintenance and fumigation.
Post-holiday supplies were expected
to be relatively tight in most areas, traders said, but not as tight as typical since
demand was " down a touch. "
The timing of tighter supplies was ideal
in the Southwest. The voracious demand
for midds seen in February and March
eased last week in Texas and Oklahoma.
Buyers still needed their contracted loads
but weren't adding extra when offered.
Upper Midwest demand cooled from
its peak a few weeks earlier but was steady
in the holiday week. It was expected some
users' January-March supplies on hand
would carry them well into the second
quarter. The region's supply-demand scenario was complicated by carryovers last
week and the prior three as a major mill
was unable to fulfill load allocations.
Millfeed was $165 a ton in Kansas City
and $179 a ton in Minneapolis, on a rail
basis, compared with corn at $202 a ton
and sorghum at $200 a ton, both K.C.
Corn gluten feed was $5 lower at $250
a ton in KC, where dried distillers' grain
and dehydrated alfalfa were steady at
$220 and $300 a ton, respectively. MBN

	

		- Change from -	
Apr.	
Mar. 26	 Mar. 19	
155	@	 165		-		
-15	@	 -25	
220	@	 240	 -10	@	-10	 -20	@	-20	
164	@	 174		-		
-5	@	 -10	
160	@	 170		-		
-5	@	 -10	
177	@	 187		-		
-5	@	 -10	
165	@	 175	 -5	@	-5	 -15	@	-20	
140	@	 150	 -20	@	-20	 -30	@	-35	
170	@	 180		-		
-10	@	 -10	
159	@	 174		-			-		
155	@	 170		-			-		
115	@	 125		-		
-5	@	 -10	

$4.70

Year					 A
J
ago	 Apr.-June	 July-Sept.	 Oct.-Dec.		
Previous Year
75	@	 90	 130	@	 140	 125	@	 135	 135	 @	 150
Minneapolis
wheat
110	@	120	 155	@	165	 125	@	135	 130	@	140
May contract, per bu
124	@	 144	 145	@	 155	 145	@	 155	 145	 @	 155
120	@	 140	 141	@	 151	 141	@	 151	 141	 @	 151
$6.80
137	@	 157	 158	@	 168	 158	@	 168	 158	 @	 168
$6.30
110	@	120	 145	@	155	 125	@	135	 135	@	145
110	@	120	 130	@	140	 110	@	120	 120	@	130
$5.80
90	@	 100	 145	@	 155	 140	@	 150	 135	 @	 145
134	@	 149	 154	@	 169	 149	@	 164	 149	 @	 164
$5.30
130	@	 145	 150	@	 165	 145	@	 160	 145	 @	 160
$4.80
110	@	 120	 110	@	 120	 95	@	 105	 95	 @	 105

Milling & Baking News		

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Milling & Baking News - April 6, 2021

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