Milling & Baking News - May 8, 2018 - 42

Ingredient Week

Wheat Futures
Wheat futures posted wide gains last
week, building on the advances registered
a week earlier. On May 3, K.C. and Chicago July wheat futures traded to their highest levels since July 2017. A retreat during
the last session trimmed but fell well short
of offsetting the earlier advance.
Providing fuel to the runup were ongoing concerns related to winter wheat condition and progress, particularly across the
hard red winter wheat states of the Southwest, and the slow start to spring wheat
planting across the northern Plains.
While the Wheat Quality Council's annual Kanas hard winter wheat crop tour
contained few surprises, it initially seemed
to provide fuel to market bulls. The tour
forecast average Kansas wheat yield this
year at 37 bus per acre compared with 48
bus in 2017. The tour forecast for Kansas
wheat production was 243.5 million bus,
down about 90 million bus from 2017 and
compared with the recent five-year average Kansas outturn at 338 million bus.
The wheat tour confirmed the hard
winter wheat crop was lagging two to
four weeks behind normal progress for
the date. Much of the hard red winter
wheat crop, despite drought pressure,
was said to have the potential of approaching average yields, but that will

depend on May and June weather.
The U.S.D.A. in its weekly Crop Progress report indicated 33% of the nation's
winter wheat crop was rated good to
excellent on April 29 versus 31% a week
earlier, and spring wheat was 10% planted by April 29 versus 36% as the fiveyear average for the date.
The U.S.D.A. indicated 19% of the
nation's winter wheat crop was headed
by April 29 compared with 13% a week
earlier, 41% a year earlier and 30% as the
recent five-year average for the date.
The U.S.D.A. indicated net export
sales of wheat during the week ended
April 26 for delivery in 2017-18 totaled
234,800 tonnes, down 21% from the previous week but up noticeably from the
prior four-week average. For 2018-19,
net export sales totaled 210,300 tonnes
for the week.
One market analyst noted Mexican
mills may have purchased Black Sea
12%-protein wheat. "That should be an
eyeopener about U.S. prices and freight
costs," the merchandiser said.
Australian producers began planting
their crop in very dry conditions. MBN

Millfeed
All markets last week featured unseasonably robust demand for middlings

due to the late arrival of spring conditions and the lack of alternative ingredients. As the week progressed, warmer
weather moved across the country, causing many participants to view the market as unsettled.
Meanwhile. flour demand remained seasonally sluggish, and several of the nation's
flour mills planned downtime for annual
fumigations and scheduled maintenance.
That created very tight supplies one trader
likened to a yearend holiday week.
May values were supported by end
users covering nearby needs that exceeded their projections and by flour
mills seeking material to cover earliersold contracts.
Only a few scattered spot loads sold,
often above quoted prices, in the Upper Midwest, Northeast and Southeast.
Flour mills prioritized end users over
resellers in the Southwest, where there
were an estimated five buyers for every
load available.
Millfeed was $100 a ton in Kansas City
and $114 a ton in Minneapolis, on a rail
basis, compared with corn at $131 a ton
and sorghum at $112 a ton, both K.C.
Corn gluten feed was $5 firmer at $180 a
ton, distillers' dried grain was $5 higher
at $185 a ton, and dehydrated alfalfa was
steady at $260 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
May contract, $ per bu

$ per bu; change in cents per bu

Kansas City
May
July
September
December
Chicago
May
July
September
December
Minneapolis
May
July
September
December

$6.00

Season's
Low

May 4

- Change from -
Apr. 27 Apr. 20

Week's
High
Low

Year
ago

High

5.35¾
5.55¾
5.73¾
5.97¾

+23½c
+53c
+25¼c +53¾c
+25¼c +53¼c
+25¾c
+51c

5.47
5.68½
5.86¼
6.09

5.12
5.29¾
5.47½
5.71¼

4.38
4.50
4.66¾
4.90¾

6.19½
6.23
6.25½
6.42

(07-05-17)
(07-05-17)
(07-05-17)
(07-05-17)

4.23¾
4.40¼
4.55¾
4.78¼

(12-13-17)
(12-11-17)
(12-12-17)
(12-12-17)

+32c +64¼c
5.27½
5.26¼ +27¾c
+49c
5.41¾ +26¼c
+46c
5.63
+25¼c
+43c

5.40
5.38½
5.53
5.73¼

4.99¾
5.00¾
5.17
5.39¾

4.27½
4.42¼
4.56¼
4.76¼

6.09¾
6.09½
6.12
6.22

(07-05-17)
(07-05-17)
(07-11-17)
(07-11-17)

4.23¾
4.37
4.50½
4.68¼

(12-12-17)
(12-12-17)
(12-12-17)
(12-12-17)

6.29¾ +23½c +29¾c
6.23
+15c +17¼c
6.29
+14¾c +17½c
6.40¾ +14¾c +18¼c

6.31
6.30¾
6.37
6.49

6.08½
6.10
6.16
6.27¾

5.42
5.54¼
5.61¼
5.68½

7.92¾
7.75¼
6.89
6.89

(07-05-17)
(07-05-17)
(07-05-17)
(07-18-17)

5.59¼
5.57¾
5.67
5.80

(12-15-16)
(12-09-16)
(10-04-16)
(02-08-17)

$5.50
$5.00
$4.50
$4.00
M

A

N
Previous Year

F
Current Year

Chicago wheat futures
May contract, $ per bu

$5.90

$4.90

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
95 @ 110
Southwest, f.o.b. truck
155 @ 170
Minneapolis
104 @ 124
Upper Midwest, f.o.b. truck100 @ 120
Chicago West
117 @ 137
Central states, f.o.b truck 105 @ 125
Buﬀalo
100 @ 115
Southeast
125 @ 135
N. & S. California
134 @ 149
Los Angeles, f.o.b. truck 130 @ 145
Paciﬁc Northwest
105 @ 115
Upper Midwest, sacked
320
Wheat germ
220 @ 240
42 / May 8, 2018

Milling & Baking News

May
95 @ 105
140@ 150
104@ 119
100@ 115
117@ 132
100@ 120
95 @ 105
115@ 125
134@ 149
130@ 145
105@ 115

- Change from -
Apr. 27 Apr. 20
-
+4@ +4
-10@ -10 -10@ -10
0@ +5
-
0@ +5
-
0@ +5
-
-5@ +5 -15@ -15
+5@ 0 -15@ -15
+5@ +5 -5@ -5
+15@ +15
-
+15@ +15
-
+5@ +5
-

Year
ago
44@ 54
65@ 75
61@ 71
57@ 67
74@ 84
71@ 81
67@ 77
65@ 75
119@ 134
115@ 130
85@ 95

$3.90

June
90@ 100
125@ 135
94@ 104
90@ 100
107@ 117
100@ 115
82@ 92
105@ 115
124@ 139
120@ 135
100@ 110

July-Sept. Oct.-Dec.
95@ 105 95@ 105
120@ 130 120@ 130
104@ 114 104@ 114
100@ 110 100@ 110
117@ 127 117@ 127
90@ 105 100@ 110
77@ 87 95@ 105
100@ 110 105@ 115
119@ 134 124@ 139
115@ 130 120@ 135
100@ 110 103@ 113

M

A

N
Previous Year

F
Current Year

Minneapolis wheat futures
May contract, $ per bu
$8.20
$7.20
$6.20
$5.20
$4.20
M

A

N
Previous Year

F
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - May 8, 2018

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