Milling & Baking News - February 8, 2022 - 42

MARKET trends
per bu
TUES | 02 08 2022
Wheat Futures
Wheat futures slumped last week. Wintry
precipitation across the US Southern Plains
dampened some bullish sentiments, although
much more precipitation will be required to
turn back drought conditions and ensure a
strong start for winter wheat when it breaks
dormancy. An abysmal weekly Export Sales
report for wheat exerted pressure. The
threat that Russia still might invade Ukraine
loomed in the background but failed to arrest
the downturn in futures. Russia is the world's
largest wheat exporter, and Ukraine was
forecast to export more wheat in 2021-22 than
the United States.
Winter storms left a blanket of snow atop
fields in nearly all of Kansas, Colorado and
Oklahoma, as well as northern Texas. Fresh
snow also covered vast swaths of the Central
states, the key region for soft red winter
wheat. The snow provided both moisture
and protection to winter wheat as temperatures
plunged.
The US Department of Agriculture's
assessment of the Feb. 1 US Drought Monitor
indicated 69% of winter wheat in the United
States was growing within areas experiencing
drought just ahead of last week's storms,
- Change from -
Feb. 4 Jan. 28 Jan. 21
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September
7.85¾ -16½c
7.89½ -15¾c
7.90¾ -13¾c
7.94½ -13½c
7.63¼ -23c
7.70
-21c
7.61¾ -20¼c
7.63
-19c
9.13
$ per bu; change in cents per bu
Spot
Kansas City
Southwest, f.o.b. truck
Minneapolis
Central states, f.o.b truck
Buffalo
Southeast
N. & S. California
Los Angeles, f.o.b. truck
Pacific Northwest
Upper Midwest, sacked
Wheat germ
165 @ 175
215 @ 225
144 @ 154
Upper Midwest, f.o.b. truck 140 @ 150
Chicago West
157 @ 177
165 @ 175
155 @ 170
170 @ 190
199 @ 214
195 @ 210
120 @ 130
320
210 @ 230
$ per ton, delivered rail unless noted
42 MILLING & BAKING NEWS
BULK MIDDLINGS
- Change from -
Feb.
Jan. 28
Jan. 21
Year
ago
-7¼c
9.10½ -6¾c
9.02¾ -8¾c
8.81¼ -10¾c
-7½c
-6¾c
-7¾c
-7¼c
-16¾c
-14¾c
-12½c
-12½c
-21¼c
-15½c
which may slightly trim
the drought's extent
and severity in the next
USDA report that will be
issued Feb. 10.
At the same time, most
weather forecasters do
not see a significant pattern
change, and weather
was expected to be drier
and warmer than normal
in February.
The USDA in its weekly
KANSAS CITY NEARBY FUTURE
$5.30
$6.30
$7.30
$8.30
$9.30
FM AN
Export Sales report said
net export sales of wheat
in the week ended Jan.
27 for delivery in 202122
totaled only 57,600
tonnes, down 92% from the previous week
and down 83% from the prior four-week average.
The total fell well below pre-report trade
estimates that ranged from 200,000 to 875,000
tonnes. Even net export sales for delivery in
2022-23 at 103,500 tonnes were above sales
for the current year.
US wheat export and undelivered sales
were running 23% behind last year's pace.
US exports may fall short of the USDA
WHEAT FUTURES
Week's
High
8.17
8.20
Low
7.57
Year
ago
7.53¼ 6.25¼
6.30
8.18½ 7.59¼ 6.31¼
8.21
7.64½ 6.34½
7.98½ 7.40 6.41¼
8.03½ 7.46½ 6.45¾
7.94¼ 7.42¼ 6.32
7.93¾ 7.44¼ 6.31¾
-23c 9.34¾ 8.95½ 6.26
-21c 9.30½ 8.92¾ 6.36½
9.23¾ 8.87½ 6.44
9.03½ 8.68 6.50¼
Season's
High
Low
8.92¼ (11-24-21) 4.86½ (08-12-20)
8.92
8.74¾ (11-24-21)
(11-24-21)
(11-24-21)
8.79
8.63
10.53
(11-29-21)
(11-29-21)
5.27
5.27
(11-24-21) 4.88¼ (08-12-20)
4.93 (08-04-20)
(08-13-19)
(08-13-19)
5.16¼ (05-18-20)
8.57¾ (11-24-21) 5.34½ (08-10-20)
10.65
10.24¼ (11-29-21)
9.50½ (12-27-21)
6.15
5.74½ (09-09-20)
5.74½ (09-18-20)
6.06¾ (01-12-21)
(02-26-21)
8.71½ (11-24-21) 4.88¾ (06-26-20)
8.66½ (11-24-21)
Nearby KC hard red winter wheat futures fell
about 30¢ a bu at one point last week amid
disappointing export sales and beneficial snow
over the Southern Plains.
forecast for 2021-22 of 825 million bus.
Egypt recently purchased Ukraine wheat
at a cheaper price than a month earlier,
indicating a softening in world wheat prices.
But US export prices remained at a premium
to those for Black Sea and European Union
wheat. MBN
Millfeed
Prices advanced last week in multiple
markets during wake of a massive winter
storm across much of the country that
impacted all sectors.
Most mills shut down a couple days so
staff could safely weather the storm at home.
By week's end, mills were starting to reopen
and planned to run extra shifts, if they had
the staff, to catch up on orders they couldn't
fill during the shutdowns.
Millfeed demand was strong in weatherMarch
Apr.-June
July-Sept.
165
@ 175 +5 @ +5 +5 @ +5 156 @ 166 165 @ 175 150 @ 160 140 @ 150
215 @ 225 +10 @ +10 +15 @ +15 200 @ 210 210 @ 200 170 @ 180 160 @ 170
144 @ 154 -10 @ -10 -10 @ -10 149 @ 169 144 @ 154 129 @ 139 119 @ 129
140 @ 150 -10 @ -10 -10 @ -10 145 @ 165 140 @ 150 125 @ 135 115 @ 125
157 @ 167 -10 @ -10 -10 @ -10 162 @ 182 157 @ 167 142 @ 152 132 @ 142
165 @ 175 +5 @ +5 +15 @ +15 160 @ 170 155 @ 165 140 @ 150 130 @ 140
155 @ 170 -5 @ 0 +5 @ +10 160 @ 170 150 @ 160 140 @ 150 130 @ 140
170 @ 190 +10 @ +10 +20 @ +25 175 @ 185 165 @ 175 150 @ 160 140 @ 150
199 @ 214 +5 @ +5 +5 @ +5 164 @ 179 199 @ 214 179 @ 194 169 @ 184
195 @ 210 +5 @ +5 +5 @ +5 160 @ 175 194 @ 209 175 @ 190 165 @ 180
120 @ 130
-
-
120 @ 135 120 @ 130 110 @ 120 110 @ 120
affected regions. Buyers worried about
running through their supplies and were
willing to pay premium prices for delivered
loads. But transportation remained the
perennial thorn in everyone's side. Lack of
drivers plus increased demand and competition
from other more lucrative industries
pressured sellers to keep midds prices from
expanding. Buyers not wanting to pay the
hefty transit fees risked having their loads
resold if not picked up in a timely fashion.
Bookings remained stagnant as market
participants focused on digging out from
last week's snowy aftermath.
Millfeed was $165 a ton in Kansas City
and $144 in Minneapolis, on a rail basis,
compared with corn at $223 a ton and sorghum
at $226 a ton, both KC. Corn gluten
feed advanced $10 and dried distillers' grain
expanded $20 to settle at $235 and $245 a
ton, respectively, in KC. Dehydrated alfalfa
was steady at $300 a ton. MBN
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Milling & Baking News - February 8, 2022

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