Milling & Baking News - June 5, 2018 - 33

Ingredient Week

Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 3c a bu lower last week.
Wheat movement into spot marketing
channels was sluggish. Mill demand was
not pressing, but most wheat offered
easily found homes as buyers sought
to keep pipelines optimally filled while
awaiting the expansion of the 2018 harvest into key growing regions.
Business in to-arrive wheat was light,
although there was some inquiry for July
shipment of 11%- to 11.5%-protein hard
winter to Los Angeles. Mills earlier bought
some wheat for June and July with a few
transactions conducted further forward.
But each mill had to determine just how
much old crop supply it was willing to
carry into the new crop year. Expectations
were the average protein of the 2018 hard
red winter wheat crop couldn't help but be
higher than that of the last two harvests.
Combining was beginning to make
strong progress in Texas and Oklahoma.
The Texas winter wheat harvest was 20%
completed by May 27 compared with 12%
a week earlier, 22% a year ago and 13% as
the recent five-year average for the date, the
U.S. Department of Agriculture indicated
in its weekly Crop Progress report. Harvesting was underway in southern Oklahoma, but the U.S.D.A. office in that state
provided no indication of progress as yet.
Early results from the Texas harvest
weren't very promising with regard to
protein. The Fort Worth Grain Exchange
indicated harvest samples from south
of Fort Worth featured excellent test
weights, between 62 and 64 lbs per bu, but
exceptionally low protein at about 10% to
10.2%. Harvest wheat from west Texas
had higher protein with several samples
at about 11.7%. Average protein in both
areas was rising toward the week's end,
though. South Texas protein still was

No. 1 hard winter
Basis Kansas City July, cents per bu
June 1 - Change from - Year
Premium May 25 May 18
ago
Ordinary 106@ 121
-
+19 @ +19 -5 @ 5
11%
121@ 136
-
+6 @ +6 15 @ 25
11.2% 125@ 140
-
-
36 @ 46
11.4% 129@ 144 -3 @ -3 +4 @ +4 56 @ 66
11.6% 131@ 146 -3 @ -3 +6 @ +6 71 @ 81
11.8% 143@ 158
-
+7 @ +7 100 @ 110
12%
143@ 158
-
+3 @ +3 100 @ 110
12.2% 143@ 158
-
+3 @ +3 105 @ 115
12.4% 145@ 160
-
+5 @ +5 105 @ 115
12.6% 150@ 165
-
-
110 @ 120
12.8% 150@ 165
-
-
115 @ 125
13%
160@ 175
-
-
145 @ 155
13.2% 160@ 175
-
-
145 @ 155
13.4% 160@ 175
-
-
145 @ 155
13.6% 166@ 181
-
-
145 @ 155
13.8% 166@ 181
-
-
145 @ 155
14%
170@ 185
-
-
170 @ 180
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averaging below 11%, but the latest west
Texas wheat samples averaged 12%.
Mike Schulte of the Oklahoma Wheat
Commission indicated the harvest in his
state was about 6% completed and was
poised to make strong progress in the
next few days if weather remains favorable. Early samples from the new crop
featured wheat with mostly high test
weight, with 60 to 63 lbs per bu representative. Protein in early samples spanned a
wide range, from 10.5% to 17.1%. Expectations were most of the crop will have
protein between 11.5% and 12.5% with
pockets of wheat with higher protein.
The U.S.D.A. indicated wheat rated
good to excellent on May 27 was 17%
in Kansas (15% a week earlier), 11% in
Oklahoma (12%), 18% in Texas (16%),
56% in Colorado (60%), 67% in Nebraska
(62%), 50% in South Dakota (46%) and
68% in Montana (64%). Wheat rated
poor to very poor was 48% in Kansas,
63% in Oklahoma and 54% in Texas.
Gulf bids on 12%-protein hard red winter were 165c over K.C. July, unchanged.
HARD SPRING. Premiums on hard red
spring wheat were 20c a bu higher to
55c lower last week. The cash basis was
pressured by increased offers. Mills that
earlier purchased wheat for delivery in
June and July pulled back in the face of
the accelerated movement.
Many farmers were finished planting
spring wheat and took advantage of the
recent rally in Minneapolis futures to sell
both old crop and new crop wheat. The

old crop sales and the need to clear space
for the new crop encouraged elevators to
load wheat into the spot market.
Spring wheat planting pulled ahead
of the average pace. Ninety-one per cent
of the spring wheat crop in the six key
producing states was planted by May 27
compared with 79% a week earlier, 95%
a year ago and 89% as the recent fiveyear average for the date. North Dakota
wheat was 91% planted compared with
83% as the average for the date.
Three thousand Canadian Pacific Railway locomotive engineers and conductors went on strike the evening of May
29 but returned to work the next day as
a new agreement was reached between
management and the Teamsters.
SOFT RED. Mill bids on soft red winter wheat were mostly unchanged last
week. St. Louis-area mill bids for nearby
were 20@25c over Chicago July. Chicago
mill bids for nearby were 10c over Chicago July. Toledo mill bids for nearby were
15c over Chicago July. Elevator bids were
10c over Chicago July for nearby and
new crop. Cincinnati elevator bids were
10c over Chicago July. Michigan white
wheat mill bids were 20c over Chicago
July; soft red bids were 5c over July. Gulf
bids on soft red winter wheat for nearby
were 62c over Chicago July, up 5c.
The soft red winter wheat harvest expanded in the South and Delta states.
Combining was 44% completed in Louisiana by May 27, 11% in Alabama, 25%
in Georgia and 6% in South Carolina. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis July, delivered Chicago\beyond cents
per bu
June 1
- Change from -
Year
Premium
May 25
May 18
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
...
13.5%
95 @ 100 -20 @ -40 -35 @ -30 75 @ 95
14%
125 @ 160
0 @ +20 -10 @ +10 85 @ 105
14.5%
140
-
-15
100 @ 110
15%
145 @ 175 -55 @ -25 -35 @ -5 150 @ 175
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

June 1
Bid

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
June
+160 July
170
July
+160 July
170
August
+150 Sep.
160
September
+150 Sep.
160
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
June
+60 July
70
July
+62 July
73
August
+50 Sep.
60
September
+55 Sep.
65

Year ago
bid

+140 July
+140 July
+130 Sep.
+133 Sep.

+49 July
+49 July
+38 Sep.
+48 Sep.

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

Cash wheat
June 1 - Change from -
For shipment
Bid May 25 May 18
No. 1 Soft White, Track, Portland
$ per bu
June
6.00
-.04
+.08
July
6.00
-.04
+.10
August
5.96
+.01
+.18
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
June
1.50
-
-
July
1.50
-
-
August
1.15
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
June
1.50
-
-
July
1.45
-
-
August
1.15
-.05
-.05
Milling & Baking News

Year
ago
4.85
4.85
4.85
0.85
0.85
0.70
1.00
1.00
0.90

June 5, 2018 / 33

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Milling & Baking News - June 5, 2018

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