Milling & Baking News - June 5, 2018 - 34

Ingredient Week

Wheat Futures
Wheat futures tumbled last week but
not before the Kansas City July advanced
to its highest level since July 2017. The
advancing winter wheat harvest, outstanding progress in seeding the spring
wheat crop as well as corn and soybeans,
the recent rally in the value of the dollar
and uncertainties in the trade outlook in
view of the Trump administration's impulsive approach to trade policy, combined to pressure agricultural commodity futures and outweigh supportive features such as dryness that may reduce
wheat production in some key exporting
countries, particularly Russia.
President Trump ordered the imposition of tariffs on steel and aluminum
imported from Canada, Mexico and the
European Union. The tariffs had been
on hold while trade negotiations were
ongoing. Those nations readied their retaliatory actions. Also, the renegotiation
of the North American Free Trade Agreement may be imploding following VicePresident Mike Pence's assertion that if
Canada and Mexico did not agree to a
sunset clause that would see the revised
NAFTA expire after five years, there
would be no new agreement.
The U.S. Department of Agriculture
indicated in its weekly Crop Progress

report that winter wheat rated good to
excellent as of May 27 was 38% compared
with 36% a week earlier and 50% a year
ago. Minor improvements were seen in
Kansas and Texas but not in Oklahoma.
The hard red winter wheat harvest
expanded. The Texas harvest was 20%
completed by May 27, the U.S.D.A. said.
The Oklahoma Wheat Commission estimated the Oklahoma harvest was 5% to
6% completed by midweek. The weather
outlook was favorable for an acceleration in combining in both states in the
next several days.
The soft red winter wheat harvest expanded in the South and Delta states.
The U.S.D.A. indicated the spring
wheat crop in the six key producing
states was 91% completed by May 27
compared with 89% as the five-year average for the date.
The U.S.D.A. indicated net export
sales of wheat during the week ended
May 24 for delivery in the current crop
year totaled 29,500 tonnes, down 74%
from both the previous week and the
prior four-week average. Net sales for
2018-19 totaled 270,900 tonnes. MBN

Millfeed
Prices were mixed but mostly lower
last week as values continued to weaken

seasonally. Feed demand continued to
decline in most areas as pastures grew.
Flour grind reductions for Memorial Day
had little impact on supplies or prices.
Southwest supply grew heavy, and
many buyers were said to be purchasing
hand to mouth. Recent rains greened pastures sufficiently to serve as an alternative
source of feed in many cases. However,
early hot, dry conditions led to ideas that
grasses may burn off and bump up summer demand for manufactured feed if the
rainfall doesn't continue.
Central states prices eased on increased
runtimes that had merchandisers cleaning up weekend supplies into midweek.
Northeast markets continued to be an
outlier in price and demand trends. Buffalo spot values rose $5 a ton last week
and remained $10 higher than balanceJune prices, which gained $10. Mills in
the region continued to experience sporadic problems that curtailed flour production.
Millfeed was $78 a ton in Kansas City
and $89 in Minneapolis, on a rail basis,
compared with corn at $131 a ton in K.C.
There was no quote on sorghum for K.C.
Corn gluten feed was $2 lower at $188 a
ton, distillers' dried grain was $12 lower
at $178 a ton and dehydrated alfalfa was
steady at $250 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
July contract, $ per bu

$ per bu; change in cents per bu

Kansas City
July
September
December
March
Chicago
July
September
December
March
Minneapolis
July
September
December
March

$6.00

Season's
Low

June 1

- Change from -
May 25 May 18

Week's
High
Low

Year
ago

High

5.40¾
5.59
5.83¼
5.99½

-23¼c
-23½c
-23c
-22¼c

+2c
+1½c
+½c
-½c

5.74¾
5.92¾
6.15¼
6.29½

5.32
5.50½
5.74½
5.90¾

4.33¼
4.51½
4.76¾
4.91

6.23
6.25½
6.42
6.44¼

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

4.40¼
4.55¾
4.78¼
4.83

(12-11-17)
(12-12-17)
(12-12-17)
(08-30-16)

5.23¼
5.40¾
5.61¾
5.79¾

-19¾c
-19c
-16¾c
-14¾c

+5c
+6¾c
+7c
+7¼c

5.54
5.70¾
5.88
6.03

5.15¼
5.32½
5.52¼
5.69

4.29½
4.43¾
4.65
4.82¾

6.09½
6.12
6.22
6.25¼

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

4.37
4.50½
4.68¼
4.82¼

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

6.04
6.12¾
6.23½
6.35½

-40¼c
-36c
-31½c
-27c

-25c
-20½c
-18¼c
-14½c

6.49½
6.54½
6.60½
6.67

6.03¼
6.11¾
6.23¼
6.34¼

5.83¾
5.87
5.88½
5.91¾

7.75¼
6.89
6.89
6.85¾

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

5.57¾
5.67
5.80
6.12¼

(12-09-16)
(10-04-16)
(02-08-17)
(06-21-17)

$5.50
$5.00
$4.50
$4.00
J

S

D
Previous Year

M
Current Year

Chicago wheat futures
July contract, $ per bu

$5.90

$4.90

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
78 @ 88
Southwest, f.o.b. truck
102 @ 112
Minneapolis
85 @ 95
Upper Midwest, f.o.b. truck 89 @ 99
Chicago West
102 @ 112
Central states, f.o.b truck 91 @ 101
Buﬀalo
100 @ 110
Southeast
100 @ 110
N. & S. California
140 @ 155
Los Angeles, f.o.b. truck 136 @ 151
Paciﬁc Northwest
105 @ 115
Upper Midwest, sacked
320
Wheat germ
220 @ 240
34 / June 5, 2018

Milling & Baking News

June
78 @ 88
102@ 112
89 @ 99
85 @ 95
102@ 112
91 @ 101
90 @ 100
100@ 110
130@ 145
126@ 141
100@ 110

- Change from -
May 25 May 18
-4@ -4
-7@ -7
-3@ -3 -13@ -13
-7@ -7 -10@ -10
-7@ -7 -10@ -10
-7@ -7 -10@ -10
-9@ -9 -14@ -14
+10@ +10 -10@ -10
-5@ -5
-5@ -5
+6@ +6 -4@ -4
+6@ +6 -4@ -4
-
-5@ -5

Year
ago
53@ 63
73@ 80
59@ 69
55@ 65
72@ 82
67@ 75
63@ 73
70@ 80
114@ 129
110@ 125
85@ 95

$3.90

July-Sept.
83@ 93
110@ 120
102@ 112
98@ 108
115@ 125
93@ 103
80@ 90
95@ 105
126@ 141
122@ 137
100@ 110

Oct.-Dec.
96@ 106
120@ 130
104@ 114
100@ 110
117@ 127
98@ 108
95@ 105
105@ 115
132@ 147
128@ 143
103@ 113

Jan.-Mar.
97@ 107
120@ 130
104@ 114
100@ 110
117@ 127
100@ 115
95@ 105
105@ 115
132@ 147
128@ 143
103@ 113

J

S

D
Previous Year

M
Current Year

Minneapolis wheat futures
July contract, $ per bu
$7.60
$6.60
$5.60
$4.60
J

S

D
Previous Year

M
Current Year

bakingbusiness.com / world-grain.com
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Milling & Baking News - June 5, 2018

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