Milling & Baking News - March 23, 2021 - 58

Ingredient Week

Wheat Futures
Wheat futures dropped last week with
Kansas City futures leading the way lower.
Recent precipitation across the southern
Plains loosened the grip of drought on the
hard red winter wheat crop as it was emerging from dormancy. The improved conditions buoyed confidence in the prospects
for the winter wheat crop and was a principal feature in the downturn in futures.
The US Department of Agriculture,
reflecting the precipitation from a week
earlier, upgraded winter wheat condition ratings at least slightly for Kansas,
Oklahoma and Texas. The more favorable
conditions also were reflected in the USDA's weekly analysis of the US Drought
Monitor, which pointed to the lessening
of drought impact in major states such
as Kansas, Nebraska, South Dakota and
Oklahoma. Only Colorado failed to show
improvement in its drought profile. Much
more precipitation will be required in the
coming weeks to truly end drought in
the key hard winter wheat states, but if
weather patterns are normal, that precipitation will come.
The USDA will resume issuing weekly
Crop Progress reports covering all winter wheat states on April 5.
While export demand for US wheat

continued to tread water, China again
proved to be a buyer in the latest week.
The USDA, in its weekly Export Sales
report, said during the week ended March
11 net export sales of US wheat for delivery in 2020-21 totaled 390,100 tonnes, up
18% from a week earlier and up 40% from
the four-week average. Notably, sales to
China increased 132,300 tonnes, including 130,000 tonnes switched from " unknown destinations. " Exports and undelivered sales of US wheat to China for
delivery in 2020-21 now totaled 3,050,600
tonnes. China holds half of world wheat
stocks yet has been a buyer. Some analysts said China was importing wheat for
feed as well as food.
China purchased 3.8 million tonnes
of US corn last week, which supported
at least old crop corn futures. Chinese
purchases of US corn for 2020-21 now
totaled more than 23 million tonnes. MBN

Millfeed
Prices eased in most regions last week
but still were at " nosebleed " levels as
strong demand outpaced supply.
Spot millfeed prices 60% to 125%
above year-ago levels had feed mixers
looking for lower-priced alternate ingredients. Most searches were unfulfilled.

Wheat futures

Kansas City wheat futures

$ per bu; change in cents per bu

May contract, per bu
Season's
Low

$6.75

- Change from -
Mar. 12 Mar. 5

Week's
High
Low

Year
ago

High

5.85½
5.91¼
5.97
6.05¼

-18c
-17½c
-18c
-17¾c

-40¾c
-40½c
-40c
-39¼c

6.09¼
6.13½
6.19
6.26½

5.80
5.85¾
5.91½
6.00¼

4.69
4.72½
4.79¾
4.90¾

6.64
6.67
6.70¾
6.77

(02-24-21)
(02-24-21)
(02-24-21)
(02-24-21)

4.41¾
4.49¾
4.59½
4.72¼

(08-07-20)
(08-07-20)
(08-07-20)
(08-07-20)

6.27
6.19¼
6.19½
6.26½

-11½c
-12¾c
-13¼c
-13c

-26c
-24c
-22½c
-20½c

6.49½
6.39½
6.38½
6.44¾

6.21¾
6.15¼
6.15½
6.22¼

5.39¼
5.35¾
5.38¼
5.46¾

6.93
67¼
6.69½
6.73

(01-15-21)
(02-24-21)
(01-15-21)
(01-15-21)

4.94¼
4.96¼
5.03¾
5.14

(06-26-20)
(06-26-20)
(06-26-20)
(06-26-20)

Mar. 19
Kansas City
May
July
September
December
Chicago
May
July
September
December
Minneapolis
May
July
September
December

Slight increases in flour grind brought
modest pressure on nearby prices in
most areas. But the resulting increased
millfeed supply likely will be shortlived as flour mills plan for additional
downtime over Easter weekend. An
unexpected lost day of production at a
St. Louis-area mill took several needed
loads off the market.
The exception was in the Southwest
where seemingly insatiable demand from
feedlots easily absorbed regional supply
and pushed prices higher, while drawing
in any excess supply from surrounding
regions if transport could be found.
Trading beyond April was limited as
buyers hoped for sharply lower prices,
typical as pastures green up going into
spring. But high corn prices and mills'
uncertainty about flour demand even as
the country appears to be emerging from
COVID-19 restrictions had some flour
mills unwilling to offer supply.
Millfeed was $180 a ton in Kansas City
and $169 a ton in Minneapolis, on a rail
basis, compared with corn at $195 a ton
and sorghum at $229 a ton, both KC.
Corn gluten feed was steady at $265 a
ton in KC, where dried distillers' grain
and dehydrated alfalfa were steady at
$225 and $300 a ton, respectively. MBN

$6.25
$5.75
$5.25
$4.75
$4.25

6.27
6.35½
6.42¼
6.50¼

-6¾c
-6¼c
-5¾c
-5c

-18¼c
-15½c
-13c
-11¼c

6.40
6.47¾
6.53½
6.61¼

6.21
6.30
6.36¾
6.45

5.21
5.29¾
5.38¼
5.50½

6.62
6.65¾
6.68
6.69

(01-19-21)
(01-19-21)
(01-15-21)
(01-15-21)

5.30¼
5.40½
5.49¾
5.61½

(08-17-20)
(08-12-20)
(08-12-20)
(08-13-20)

M

J

S
Previous Year

D
Current Year

Chicago wheat futures
May contract, per bu
$7.10
$6.70
$6.30
$5.90

Bulk middlings

$5.50
$5.10

$ per ton, delivered rail unless noted
Spot
Kansas City
180 @ 200
Southwest, f.o.b. truck
250 @ 270
Minneapolis
169 @ 184
Upper Midwest, f.o.b. truck165 @ 180
Chicago West
182 @ 197
Central states, f.o.b truck 180 @ 195
Buﬀalo
170 @ 185
Southeast
185 @ 200
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
58 / March 23, 2021

- Change from -
Mar.
Mar. 12 Mar. 5
170@ 190 +5@ +15 +25@ +35
240@ 260 +15@ +25 +45@ +45
169@ 184 0@ +5
0@ +5
165@ 180 0@ +5
0@ +5
182@ 197 0@ +5
0@ +5
180@ 195 0@ +5
0@ +5
170@ 185 -5@ 0 +15@ +20
180@ 190 -5@ -5 +10@ +10
159@ 174 -5@ -5 -15@ -15
155@ 170 -5@ -5 -15@ -15
120@ 135
-
-

Milling & Baking News

Year
ago
80@ 95
120@ 130
94@ 104
90@ 100
107@ 117
100@ 110
100@ 110
95@ 105
134@ 149
130@ 145
115@ 125

$4.70
M

Apr.-June
140@ 160
160@ 180
154@ 169
150@ 165
167@ 182
160@ 170
150@ 165
150@ 160
154@ 169
150@ 165
110@ 120

July-Sept. Oct.-Dec.
135 @ 150 140 @ 155
130 @ 140 130 @ 140
144 @ 159 144 @ 159
140 @ 155 140 @ 155
157 @ 172 157 @ 172
135 @ 145 135 @ 145
120 @ 135 120 @ 135
145 @ 155 135 @ 145
149 @ 164 149 @ 164
145 @ 160 145 @ 160
95 @ 105 95 @ 105

J

S
Previous Year

D
Current Year

Minneapolis wheat futures
May contract, per bu
$6.80
$6.30
$5.80
$5.30
$4.80
M

J

S
Previous Year

D
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - March 23, 2021

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