Milling & Baking News - March 27, 2018 - 49

Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were unchanged to 9c a bu higher last week. The
only adjustments from the previous week
were registered at 11.6% protein through
12.2% in response to a trade of 11.6%-protein wheat at 138c over K.C. May. The basis across the rest of the protein scale was
unchanged and mostly untested.
Poor railroad performance resulted
in delayed shipments of wheat earlier
purchased by mills. The delays opened
some gaps in wheat coverage individual
mills had to fill by seeking supply offered on the spot market.
Business in to-arrive wheat was limited
with the spread between bids and offers
still too wide to generate much activity.
Much welcomed rain fell across parts
of the drought-stressed Southwest, and
there was hope a forecast wetter weather
pattern would be realized.
Meanwhile, winter wheat condition ratings in Kansas, Oklahoma and Texas deteriorated in the week ended March 18. The
U.S. Department of Agriculture rated the
condition of Kansas wheat on that date at
1% excellent, 10% good, 34% fair, 38% poor
and 17% very poor. Oklahoma's wheat
condition was rated 5% good, 29% fair, 39%
poor and 27% very poor. Oklahoma wheat
was 21% jointed. Texas wheat condition on
March 18 was rated 1% excellent, 9% good,
30% fair, 24% poor and 36% very poor.
The U.S.D.A. indicated, based on the
March 20 U.S. Drought Monitor, that
drought conditions across the Southwest
mostly stabilized compared with a week
earlier. The exception was Texas. While
the U.S.D.A. lowered its estimate of Texas
wheat growing in drought areas to 76%
compared with 78% a week earlier, 49%
of the state's crop was said to be growing
in areas of extreme drought compared
with 41% a week earlier. Eighty-four per

No. 1 hard winter
Basis Kansas City Mar., cents per bu
Mar. 23 - Change from -
Premium Mar. 16 Mar. 9
Ordinary 70@ 85
-
-5 @ -5
11%
105@ 120
-
-5 @ -5
11.2% 110@ 125
-
-5 @ -5
11.4% 114@ 129
-
-5 @ -5
11.6% 123@ 138 +9 @ +9 +4 @ +4
11.8% 123@ 138 +9 @ +9 +4 @ +4
12%
123@ 138 +8 @ +8 -2 @ -2
12.2% 123@ 138 +3 @ +3 -2 @ -2
12.4% 137@ 152
-
-5 @ -5
12.6% 155@ 170
-
-10 @ -10
12.8% 155@ 170
-
-10 @ -10
13%
155@ 170
-
-10 @ -10
13.2% 155@ 170
-
-10 @ -10
13.4% 155@ 170
-
-10 @ -10
13.6% 155@ 170
-
-10 @ -10
13.8% 155@ 170
-
-10 @ -10
14%
155@ 170
-
-10 @ -10
bakingbusiness.com / world-grain.com

Year
ago
5 @ 15
10 @ 20
15 @ 25
25 @ 35
30 @ 40
35 @ 45
40 @ 50
45 @ 55
55 @ 65
60 @ 70
60 @ 70
65 @ 75
65 @ 75
75 @ 85
95 @ 105
95 @ 105
160 @ 170

cent of Kansas wheat was growing in
drought areas, unchanged from a week
earlier. The degree of drought also was
unchanged from a week earlier with
23% in extreme drought, 39% in severe
drought and 22% in moderate drought.
The same was true in the case of Oklahoma, where 94% of wheat was growing in
drought areas, unchanged from a week
earlier, with 16% in exceptional drought,
51% in extreme drought, 21% in severe
drought and 6% in moderate drought, all
also unchanged from a week earlier.
Gulf bids on 12%-protein hard red
winter wheat for nearby were 180c over
K.C. May, down 13c, against offers at
190c over. Salina truck bids at terminal
elevators were 30c under K.C. May; new
crop, 30c under July. Hutchinson wheat
bids were 25c under K.C. May; new crop,
25c under July. Wichita elevator bids for
nearby were 45c under K.C. May.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis advanced
5@30c a bu last week. Gains of 25@30c a bu
were posted at 15% protein and at the high
end of the premium range at 14% protein.
Wheat offers began to increase from recent piddling weekly totals. The increased
offers revealed underlying demand from
mills seeking to fill gaps in coverage created because of delayed shipments of
supply they had already purchased. Railroads were as much as two weeks late in
placing and moving rail cars.
The cost of rail freight in the secondary market remained high, reflecting

tightness in rail cars and power at least
through March and into early April.
Indications were some farmers recently sold additional new crop spring
wheat as far forward as December.
Wheat buyers and sellers eagerly
awaited the release of the U.S.D.A.'s annual Prospective Plantings report on
March 29, which will provide the department's forecast for spring wheat plantings. Many thought producers would
plant a half-million to 1 million additional
acres to spring wheat this year than last.
SOFT RED. Mill bids on soft red winter
wheat were firm last week. St. Louis-area
mill bids for nearby were 10c to 25c over
Chicago May. Chicago mill bids for nearby were the Chicago May price. Toledo
mill bids for March-May were 10c over
May, unchanged; June-July, the Chicago
July price; August-September, 10c under
September. Elevator bids were 5c over
May for nearby; 5c under July for new
crop. Cincinnati elevator bids for nearby
were the Chicago May price; new crop,
10c over July. Michigan white wheat mill
bids were 25c over Chicago May; soft red
bids were 15c over Chicago May. Gulf
bids on soft red winter wheat for nearby
were 65c over Chicago May, up 2c.
Soft wheat millers traveled to Naples,
Fla., to attend the annual spring conference of the North American Millers' Association, which was scheduled for March
24-27. A highlight of the meeting looked
to be forecasts of soft red winter and soft
white winter wheat production by state. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Mar., delivered Chicago\beyond cents
per bu Mar. 23
- Change from -
Year
Premium Mar. 16
Mar. 9
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
...
13.5%
140
...
+5
...
14%
145 @ 178 +5 @ +28
0 @ +18
95
14.5%
...
...
...
...
15%
200
+30 @ +25 +35 @ +20 115 @ 145
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Mar. 23
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
March
+180 May
190
April
+170 May
180
May
+170 May
180
June
+165 July
175
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
March
+68 May
73
April
+66 May
75
May
+68 May
75
June
+50 July
56

Year ago
bid

...
+105 May
+106 May
+97 July

+50 May
+50 May
+51 May
+51 July

Basis Kansas City, cents per bu
222
182
142
102
62
22
M

J

S

D

Cash wheat
Mar. 23 - Change from -
For shipment
Bid Mar. 16 Mar. 9
No. 1 Soft White, Track, Portland
$ per bu
March
5.67
-.01
+.01
April
5.67
+.01
+.01
May
5.67
+.01
+.01
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
March
1.60
+.05
+.05
April
1.60
+.10
+.10
May
1.60
+.10
+.10
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
March
1.30
-
-
April
1.20
-
-
May
1.20
-
-
Milling & Baking News

Year
ago
...
4.79
4.79
1.05
1.00
0.95
1.00
1.00
1.00

March 27, 2018 / 49
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Milling & Baking News - March 27, 2018

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