Milling & Baking News - June 14, 2022 - 42

MARKET trends
TUES | 06 14 2022
Wheat Futures
Wheat futures posted solid gains with
most other agricultural futures last week.
The Russia-Ukraine war dominated the market
with some late-week attention shifting to
Friday's US Department of Agriculture Crop
Production and World Agricultural Supply
and Demand Estimates reports.
US wheat futures posted gains of about
25¢ to 43¢ a bu with KC hard red winter
wheat futures scoring the largest advances
of 39¢ to 43¢ a bu. Friday's USDA reports
prompted mixed changes - higher in KC,
mixed in Chicago and mostly lower in Minneapolis.
Talks
in Turkey between Russia, Ukraine,
Turkey and the United Nations failed to
come up with a workable solution to get
grain exports out of Ukraine by water - the
result most expected. Meanwhile, Russia
blamed the global wheat shortage on financial
sanctions imposed by other countries,
Ukraine accused Russia of stealing about
600,000 tonnes of grain for export, and
intense fighting continued in Ukraine.
The USDA forecast US 2022 winter wheat
production at 1,181,632,000 bus, up 0.7% from
May but down 7% from 2021 and slightly
- Change from -
Kansas City
July
September
December
March
Chicago
July
September
December
March
Minneapolis
July
September
December
March
June 10 June 3 May 27
11.62½ +41½c
11.69¼ +41c
11.77¼ +39c
11.82¾ +39¼c
10.70¾ +30¾c
10.84¾ +33c
10.98
+35c
11.08 +35½c
12.21½ +29¾c
12.21¼ +27¾c
12.19½ +27¾c
12.22 +27½c
$ per bu; change in cents per bu
Spot
Kansas City
Southwest, f.o.b. truck
Minneapolis
140 @ 150
180 @ 190
169 @ 179
Upper Midwest, f.o.b. truck 165 @ 175
Chicago West
Southeast
N. & S. California
Los Angeles, f.o.b. truck
Pacific Northwest
Upper Midwest, sacked
Wheat germ
182 @ 192
Central states, f.o.b truck 200 @ 210
Buffalo
160 @ 170
210 @ 225
206 @ 221
170 @ 180
320
...
$ per ton, delivered rail unless noted
42 MILLING & BAKING NEWS
BULK MIDDLINGS
- Change from -
July
June 3
May 27
Year
ago
-71c
above the average of trade expectations.
The USDA projected the carryover US
wheat on June 1, 2023, at 627 million bus,
up 8 million bus from May but down 28
million bus, or 4.3% from 655 million bus
in 2022. The increased carryover in 2023
was the result of higher forecast production
this year with other categories, including
exports, unchanged from May. Globally,
2022-23 wheat stocks were forecast lower.
The USDA rated the condition of the
winter wheat crop as of June 5 at 30% good
to excellent, up slightly from 29% a week
earlier but well below 50% at the same time
last year. The crop was 79% headed, modestly
behind 84% both last year and as the 2017-21
average for the date. Winter wheat was 5%
harvested, ahead of 2% last year and about
even with 6% as the five-year average.
The USDA said the spring wheat crop as
of June 5 was 82% planted, well behind 99%
a year ago and 97% as the five-year average,
with North Dakota at 74% (97% as the average)
and Minnesota at 65% (98% as the average).
The crop was 55% emerged, well behind 89%
last year and 83% as the average for the date.
In its assessment of the June 7 US
Drought Monitor, the USDA said 49% of
WHEAT FUTURES
Week's
High
Low
-72¾c 11.84¾ 11.30
Year
ago
High
6.38
-72c 11.90¾ 11.37 6.45¾
12.00
11.47 6.54½
-65¾c 12.03¼ 11.54¼ 6.63¼
-86¾c 11.08¾ 10.44¼ 6.80¾
-81½c
-75½c
-68¾c
11.19½ 10.57¾ 6.85¾
11.30
10.71
-83¼c
-83½c
-77½c
6.93¼
11.36¾ 10.81¾ 7.00
12.48 12.01½ 7.64¾
12.48 12.02¼ 7.71¼
-82c 12.44½ 12.08¾ 7.74½
12.41¾ 12.12¾ 7.75¾
(05-17-22)
Season's
Low
13.79¼ (05-17-22) 4.88¾ (06-26-20)
13.80
12.84
12.85
12.82
(05-17-22) 5.16¼ (05-18-20)
(05-17-22) 5.34½ (08-10-20)
(05-17-22)
14.25¼ (03-07-22)
14.12¾ (05-17-22)
14.06½ (05-17-22)
14.00
5.14
5.27
6.15
6.06¾ (01-12-21)
(02-26-21)
(05-17-22) 5.61½ (08-13-20)
13.90¼ (05-17-22) 5.74½ (09-09-20)
4.93 (08-04-20)
13.76¾ (05-17-22) 4.72¼ (08-07-20)
13.62½ (05-17-22) 4.86½ (08-12-20)
(06-26-20)
(08-13-19)
total US winter wheat production was in an
area experiencing drought, down from 54%
a week earlier, and 25% of spring wheat was
in an area of drought with none of North
Dakota currently in drought.
The USDA said net export sales of US wheat
in the week ended June 2 for delivery in 202223
that began June 1 totaled 451,000 tonnes. A
total of 740,300 tonnes of undelivered sales
were carried over from 2021-22 into 2022-23.
Accumulated exports for 2021-22 totaled
18,668,900 tonnes, down 25% from 2020-21,
US wheat was included in a USDA tender
and a routine Japanese tender, but export
sales otherwise were lacking with US supplies
still mostly priced above export competitors.
MBN
Millfeed
Prices were mixed last week as a dichotomy
between markets developed. Supplies
east of the Mississippi River tended to be
tight, supporting firm prices. But markets
west of the river were softer and heavy with
supplies.
The Central states market continued to
struggle with poor run times from slow
flour business, resulting in numerous canceled
loads. Indiana and Ohio midds could
fetch up to $240 a ton picked up at the mill.
Run times at flour mills in the East were
improving but not fast enough to meet
demand, which was particularly strong
from catfish producers in the Southeast.
Flour mills west of the Mississippi River
posted steady six- to seven-day grinds, but
feed demand had essentially evaporated.
Growing pastures from a cool, wet spring
pressured prices lower across these markets,
and regional traders felt softness might
intensify in coming weeks.
The main focus for many players was
Aug.-Sept.
Oct.-Dec.
June
150 @ 160 -5 @ -5 -10 @ -10 160 @ 170 150 @ 160 170 @ 180 140 @ 150
175 @ 185 -5 @ -5 -10 @ -10 190 @ 200 165 @ 175 165 @ 175 180 @ 190
169 @ 179 +10 @ +10 +5 @ +5 194 @ 204 174 @ 184 174 @ 184 169 @ 179
165 @ 175 +10 @ +10 +5 @ +5 190 @ 200 170 @ 180 170 @ 180 165 @ 175
182 @ 192 +10 @ +10 +5 @ +5 207 @ 217 187 @ 197 187 @ 197 182 @ 192
180 @ 190
155 @ 165
210 @ 220 210 @ 220
200 @ 215
196 @ 211
170 @ 180
-
-
-
-
-
. . .
-
-
-
-
logistics. Bringing in loads from neighboring
regions remained difficult and expensive,
keeping surplus supplies from freely
flowing into regions begging for midds from
areas with excess supplies. Some buyers
transitioned to rail deliveries when possible,
but that sector was also overwhelmed and
challenging to utilize.
" There's so much demand for freight all
-20 @ -20 175 @ 185 170 @ 180 170 @ 180 200 @ 210
140 @ 150 150 @ 160 150 @ 160 155 @ 165
170 @ 180 190 @ 200 190 @ 200 210 @ 220
184 @ 199 190 @ 205 180 @ 195 205 @ 220
180 @ 195 186 @ 201 176 @ 191 201 @ 216
160 @ 170 160 @ 170 160 @ 170 160 @ 170
. . .
the time, and trucks get to decide where they
want to go, " one trader said.
Millfeed was $140 a ton in Kansas City
and $169 in Minneapolis, on a rail basis, compared
with corn at $290 a ton and sorghum
at $252 a ton, both KC. Corn gluten feed was
$20 higher at $300 a ton KC. Dried distillers'
grain rose $15 to $280 a ton KC. Dehydrated
alfalfa was steady at $290 a ton, also KC. MBN
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Milling & Baking News - June 14, 2022

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