Milling & Baking News - September 20, 2022 - 42

MARKET trends
per ton
TUES | 09 20 2022
Wheat Futures
Wheat futures posted mixed closes for a
week that included some volatile sessions.
Futures went both directions early in the
week after the US Department of Agriculture
released its monthly Crop Production
and World Agricultural Supply and Demand
Estimates reports, which analysts viewed
as bullish for corn and soybeans but mostly
neutral to slightly bearish for wheat.
The USDA made no changes to 2022-23
wheat supply and demand forecasts for the
United States but lowered the forecast average
farm price by 25¢ from August to $9 a
bu, which represented an 18% increase from
2021-22 and a 78% increase from 2020-21.
Volatility continued mid-week amid a
sharp rally in the value of the US dollar and
a Sept. 13 report from the US Department of
Labor that indicated a higher-than-expected
Consumer Price Index for September at 8.3%.
Meanwhile, underpinning futures were the
statements earlier in the month from Russian
President Vladimir Putin on how the UN-brokered
corridor for safe passage of grain out of
Ukraine through the Black Sea was working.
Hard red winter wheat basis levels firmed
early in the week, pushed higher by millers
- Change from -
Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July
Sept. 16 Sept. 9 Sept. 2
9.35¼ +6c +57½c
concerned about the possibility
of a rail strike that
was averted a day before
negotiations were set to
lapse. Futures rallied midweek
with support from
those concerns and short
covering after the USDA
reports were released.
Futures also received
seasonal support from the
prevailing drought conditions
in the US Southern
Plains at the start of planting
season and from low
beginning stocks.
The USDA said in its
NEARBY CHICAGO WHEAT FUTURE
$6.30
$7.30
$8.30
$9.30
$10.30
$11.30
$12.30
SD MJ
Nearby Chicago wheat rose to a two-month high
last week before dropping on profit taking, technical
selling and an averted railway worker strike.
weekly crop progress report that the 2023
winter wheat crop was 10% planted by Sept.
11, advancing from 3% the prior week and
compared with 11% a year earlier and 7% as
the 2017-21 average for the date. The Kansas
hard red winter wheat crop was 3% seeded,
on par with progress a year earlier and with
the five-year average.
Following rallies to nearly two-month
highs, wheat futures tumbled later in the
week on profit-taking and as traders no
WHEAT FUTURES
Week's
High
Low
9.34¼ +4½c +55¼c 9.56½ 9.10
8.59¾ -9¾c +48¾c
8.74¾ -9¼c +47½c
8.84
-6½c +46¾c
8.75¾ -8¼c +37¼c
9.38¾ +11¼c +48¾c
9.45½ +6¼c
+43c
+3c
+39c
$ per bu; change in cents per bu
Spot
Kansas City
Southwest, f.o.b. truck
Minneapolis
230 @ 240
275 @ 285
249 @ 259
Upper Midwest, f.o.b. truck 245 @ 255
Chicago West
262 @ 272
Central states, f.o.b truck 230 @ 250
Buffalo
Southeast
N. & S. California
Los Angeles, f.o.b. truck
Pacific Northwest
Upper Midwest, sacked
Wheat germ
230 @ 250
215 @ 225
211 @ 226
170 @ 180
320
...
BULK MIDDLINGS
- Change from -
Sept.
Sept. 9
Sept. 2
Year
ago
Year
ago
9.58 9.10¼ 7.13
7.21¾
9.33¾ +4¾c +54¾c 9.53½ 9.09½ 7.26½
9.21¼ +5c +52½c
9.40 8.98¼ 7.16¾
8.84¾ 8.30¾ 7.08¾
8.99¼ 8.46½ 7.19¾
9.07½ 8.56¼ 7.22¾
8.99½ 8.50 7.03¾
9.48
9.10 9.00½
9.57½ 9.22½ 8.88¾
9.51¼ +4½c +40¾c 9.62¼ 9.30½ 8.76½
9.50
9.55 9.32½ 8.61
Season's
High
Low
13.76¾ (05-17-22) 4.72¼ (08-07-20)
13.62½ (05-17-22) 4.86½ (08-12-20)
13.26¼ (05-17-22) 4.88¼ (08-12-20)
13.79¼ (05-17-22) 4.88¾ (06-26-20)
12.82
12.94
12.84
(05-17-22)
14.25¼ (03-07-22)
(03-07-22)
14.00
5.14
5.27
5.27
(06-26-20)
(08-13-19)
(08-13-19)
(05-17-22) 5.16¼ (05-18-20)
(05-17-22) 5.61½ (08-13-20)
13.90¼ (05-17-22) 5.74½ (09-09-20)
13.58¾ (05-17-22) 5.74½ (09-18-20)
14.12¾ (05-17-22)
6.06¾ (01-12-21)
longer expected increased local demand
for feed wheat in the absence of corn shipments
by rail after a tentative union-railroad
agreement was reached. MBN
Millfeed
Millfeed prices were steady to sharply
higher last week, especially in northern
markets where some mills were forced into
no-quote status.
Tightness prevailed in Buffalo and Central
states markets where flour mills continued
to struggle with fluctuating run times. A
large mill in Buffalo that had recently closed
an entire week ahead of Labor Day had yet
to establish a reliable grind pace. Traders
scrambled to find loads since bins were emptying
quicker than they could be resupplied.
Another large mill in New York shut down
for several days, causing Buffalo spot prices
to jump $20 a ton higher.
Run times in Southeast and Southwest
markets fared much better, and some locations
were starting to feel heavy with abundant
supplies. Traders tried to move extra loads
into areas of short supply, but the difficulty of
securing trucks for long haul deliveries kept
most markets fairly isolated from each other.
Bullish US Department of Agriculture
Oct.
Nov.-Dec.
Jan.-Mar.
230 @ 240 +5 @ +5 +10 @ +10 125 @ 135 220 @ 230 220 @ 230 200 @ 210
275 @ 285 +5 @ +5 +10 @ +10 165 @ 175 265 @ 275 255 @ 265 255 @ 265
249 @ 259 +15 @ +15 +25 @ +25 157 @ 167 229 @ 239 214 @ 224 214 @ 224
245 @ 255 +15 @ +15 +25 @ +25 153 @ 163 225 @ 235 210 @ 220 210 @ 220
262 @ 272 +15 @ +15 +25 @ +25 170 @ 180 242 @ 252 227 @ 237 227 @ 237
230 @ 250 +10 @ +20 +30 @ +40 135 @ 145 220 @ 240 200 @ 210 180 @ 190
220 @ 240 +30 @ +30 +30 @ +30 120 @ 130 200 @ 210 180 @ 190 230 @ 250
205 @ 215
215 @ 230 215 @ 230
211 @ 226
170 @ 180
$ per ton, delivered rail unless noted
42 MILLING & BAKING NEWS
-
-
-
-
-
-
+5 @ +5 174 @ 189 215 @ 230 220 @ 235 220 @ 235
+5 @ +5 170 @ 185 211 @ 226
120 @ 130 160 @ 170
-
-
216 @ 231
160 @ 170
reports for corn and soybeans brought no
relief to millfeed markets. Buyers hoping firm
prices would break ahead of the fourth quarter
had their hopes dashed by reduced corn
and soybean production forecasts. Some bit
the bullet and secured coverage, but several
traders said many still had business left to do.
Millfeed was $240 a ton in Kansas City
135 @ 145 200 @ 210 195 @ 205 195 @ 205
and $259 in Minneapolis, on a rail basis, compared
with corn at $258 a ton and sorghum at
$254 a ton, both KC. Corn gluten feed dropped
$5, to $310 a ton KC. Dried distillers' grain
rose $5, to $315 a ton KC. Dehydrated alfalfa
sharply fell $35, to $300 a ton, also KC. MBN
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Milling & Baking News - September 20, 2022

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