Milling & Baking News - March 22, 2022 - 58

MARKET trends
per bu
TUES | 03 22 2022
Wheat Futures
Wheat futures declined except for the
Minneapolis July contract last week after
wide swings from day to day that included
limit-down moves on Wednesday. While
extraordinary volatility in the wake of the
Russian invasion of Ukraine remained the
rule, futures during the past two weeks
have retreated from all-time highs posted in
Chicago and Kansas City and multiyear highs
posted in Minneapolis earlier in March. Even
after those declines, though, futures continued
to trade at breathtakingly high levels.
The International Grains Council in its
March Grain Market Report lowered its
forecast for Ukrainian wheat exports in
2021-22 to 20.8 million tonnes, down 3.7 million
tonnes from its February outlook. The
IGC lowered its Russian wheat export forecast
to 32 million tonnes, down 1.5 million
tonnes from February.
The IGC said export loadings were suspended
at ports in Ukraine, and efforts to
increase exports by rail to the west weren't
expected to result in the transport of large
volumes of grain.
" While the extent of infrastructure losses is
unknown, potential damage to port facilities,
- Change from -
Mar. 18 Mar. 11 Mar. 4
Kansas City
May
July
September
December
Chicago
May
July
September
December
Minneapolis
May
July
September
December
10.70½ -18¾c
10.62
-19c
10.45¾ -23¼c
10.28¼ -33c
-144c
-112½c
-70¾c
railroads and storage silos
could impact shipments
over the longer term, " the
IGC said.
Russian grain loadings
have resumed, but
volumes were expected
to be hampered by trade
finance restrictions and
additional ocean freight
insurance requirements,
IGC added.
The longer the conflict
KANSAS CITY NEARBY WHEAT FUTURES
$5.30
$6.30
$7.30
$8.30
$9.30
$10.30
$11.30
$12.30
$13.30
MJ SD
continues, the greater
the threat to Ukraine's
2022 crop production,
which will affect overall
world supply and
demand in the months if not years ahead.
The US Department of Agriculture in its
With fewer limit up and limit down moves in nearby
KC wheat futures, the KC cash wheat market
became better defined and began to trade as the
week progressed, but cash volume remained thin.
weekly Export Sales report said net export
sales of US wheat during the week ended
March 10 for delivery in 2021-22 totaled
145,900 tonnes, down 53% from both the previous
week and the four-week average.
Traders had one eye trained on the Russia-Ukraine
war and the other on weather.
The USDA in its analysis of the March 15
WHEAT FUTURES
Week's
High
11.17
Low
Year
ago
11.64½ 10.40 5.85½
11.49¾ 10.30 5.91¼
10.14¾ 5.97
-29c 10.92¼ 10.00 6.05¼
10.63¾ -42¾c -145¼c 11.60¾ 10.31¾ 6.27
10.44¾ -32½c -130½c
10.05¾ -38¾c
9.67
11.33
-47c
10.60¼ -10c
10.54¾ +1½c
10.28½ -6c
10.24½ -7¼c
$ 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
185 @ 195
220 @ 230
174 @ 184
Upper Midwest, f.o.b. truck 170 @ 180
Chicago West
187 @ 197
180 @ 190
180 @ 190
185 @ 195
200 @ 215
196 @ 211
120 @ 130
320
210 @ 230
$ per ton, delivered rail unless noted
58 MILLING & BAKING NEWS
BULK MIDDLINGS
- Change from -
Mar.
Mar. 11
-
-
-
Mar. 4
-
-
-
-
Year
ago
10.37
-86¾c
-66c
10.13
6.19¼
-57¼c 10.79½ 9.68¼ 6.19½
-13c
11.16¾ 10.26¾ 6.27
11.01
10.15¼ 6.35½
-38¼c 10.70½ 10.00½ 6.42¼
-22c 10.62½ 10.00¼ 6.50¼
9.29 6.26½
Season's
High
11.99¼ (03-07-22)
(03-07-22)
Low
12.99½ (03-07-22) 4.88¼ (08-12-20)
12.59
5.27
5.14
(08-13-19)
(03-07-22) 4.88¾ (06-26-20)
4.93 (08-04-20)
11.42¼ (03-07-22) 4.72¼ (08-07-20)
12.94
12.60¼ (03-07-22) 5.16¼ (05-18-20)
11.45
10.55
12.07
10.99
11.80¾ (03-07-22) 6.06¾ (01-12-21)
11.15
6.15
(02-26-21)
(03-07-22) 5.34½ (08-10-20)
(03-07-22)
(03-07-22) 5.74½ (09-18-20)
(03-07-22)
(03-07-22) 5.61½ (08-13-20)
(06-26-20)
US Drought Monitor said 73% of US winter
wheat continued to grow in areas affected
by drought. At the same time, rain was in
the forecast for much of the hard red winter
wheat region.
The USDA rated Kansas wheat 23% good to
excellent as of March 13 compared with 24%
a week earlier. Crop conditions in Texas and
Oklahoma improved marginally but were
well below historical norms. MBN
Millfeed
Prices were mixed but mostly steady last
week but were starting to soften in some
markets as the week progressed.
Most feed and flour mills ran steadily with
varied weekend grind. Some Northeast and
Upper Midwest mills were pulling back on
run times to tackle maintenance and fumigation
projects. Some Southwest mills struggled
with unplanned maintenance issues.
Trading activity was spotty. Some traders
Apr.
Apr.-June
July-Sept.
185 @ 195 -5 @ -5 -5 @ -5 170 @ 190 150 @ 160 150 @ 160 135 @ 145
220 @ 230 -10 @ -10
174 @ 184
170 @ 180
187 @ 197
-
-
-
-
-
-
159 @ 174 180 @ 195 180 @ 195 170 @ 185
155 @ 170 176 @ 191
176 @ 191
166 @ 181
240 @ 260 210 @ 220 210 @ 220 170 @ 180
169 @ 184 164 @ 174 164 @ 174 154 @ 164
165 @ 180 160 @ 170 160 @ 170 150 @ 160
182 @ 197 177 @ 187 177 @ 187 167 @ 177
180 @ 190 +10 @ +10 +10 @ +10 180 @ 195 160 @ 170 160 @ 170 150 @ 160
180 @ 190 +5 @ +5 +10 @ +5 170 @ 185 160 @ 170 160 @ 170 150 @ 160
185 @ 195 -5 @ -5 +5 @ +5 180 @ 190 165 @ 175 165 @ 175 155 @ 165
200 @ 215
196 @ 211
120 @ 130
120 @ 135 110 @ 120 110 @ 120 110 @ 120
were able to book deferred contracts, but
nothing past June. Most responded to inquires
but only processed nearby transactions. The
ongoing volatility of wheat values kept many
buyers hesitant about making decisions.
Transportation challenges and managing rising
fuel surcharge fees remained top-of-mind
for all market participants.
Demand for millfeed began to wane, loosening
the tightness felt across most markets
in recent weeks. Warmer weather lessened
cold-weather-stoked appetites, helping livestock
producers stretch supplies.
Millfeed was $185 a ton in Kansas City and
$174 in Minneapolis, on a rail basis, compared
with corn at $263 a ton and sorghum at $253
a ton, both KC. Corn gluten feed held steady
at $300 a ton in KC. Dried distillers' grain
dropped $5 to $210 a ton, also in KC. Dehydrated
alfalfa jumped $40 to $325 a ton, KC. MBN
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Milling & Baking News - March 22, 2022

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