Food Business News - August 14, 2012 - 52

Ingredient Markets
Market commentary for one-week period ended August 10, 2012

Bakery Flour
Bookings of bakery ﬂour expanded last week. Price changes were mixed. Users of all grades of ﬂour chose to extend contract balances at least minimally ahead of the release at the week’s end of the U.S. Department of Agriculture’s August crop production report and 2012-13 supplyand-demand estimates. Cookie-cracker and specialty bakers joined bread bakers in tacking on additional ownership in OctoberDecember with some taking partial coverage of their ﬂour needs into the ﬁrst quarter of 2013. The activity was mostly defensive and aimed at having at least some coverage on the books in the event markets spiked in response to the government reports. That did not happen, but bakers weren’t sorry for taking the additional coverage in view of market uncertainties. There was more activity in components than in ﬂat booking of ﬂour. Millfeed prices hovering around record highs encouraged individual bakers to lock in millfeed credits against prospective ﬂour bookings not only for October-December, which saw the greatest activity, but in a few cases into the ﬁrst half of 2013. Spring grade users sensing the cash spring wheat basis may have bottomed for a while booked the basis component of prospective fourth-quarter ﬂour bookings. When futures prices dropped in response to the government reports, a flurry of hedging in wheat futures developed, but in most instances, this did not complete flour transactions.

Bakers’ commitment to contracts (combining ﬂat coverage and component coverage that committed bakers to ﬂour contracts) was estimated at about 85% of the potential in August-September with fourth-quarter 2012 coverage at about 60% with that level also including component coverage committing buyers to contracts. Flour grind averaged ﬁve to 6½ days in most regions last week. Mechanical issues brought grind at some individual mills below the average in the Northeast. FBN

Family Flour
Sales of national and regional brands of family ﬂour were seasonally sluggish last week. Carlot list prices were unchanged. Hot summer weather ensured kitchens held little allure for home bakers. At the same time, the start of a new school year wasn’t far off, and sales of family ﬂour typically begin to emerge from their summer doldrums around that time. Some manufacturers began to prepackage ﬂour for the baking season. During the summer, manufacturers and their customers planned trade activation initiatives for the fall. Many of these plans were set earlier in the summer, when wheat prices were much lower, which raised concerns over millers’ margins and ideas there may be adjustments made to carlot list prices in the weeks ahead. FBN

durum ﬂour were limited last week. Prices declined. The price of choice milling hard amber durum wheat quoted as a delivered Chicago/beyond value was $10.50 a bu, down 30c. The Chicago price equated to a Minneapolis value of $10.20 a bu. While the northern Plains durum harvest was well under way, it was uncertain how aggressively producers will sell their crop. Pasta manufacturers earlier covered up to 85% of their prospective needs through September, and one miller estimated October-December coverage at about 65%. Coverage beyond December was light. Durum mill grind was pegged at about six days, but operations may not be as heavy in the next week. The U.S. Department of Agriculture’s field office in North Dakota indicated the durum harvest in that state was 26% completed by Aug. 5 compared with 14% a week earlier and 4% as the recent five-year average for the date. The crop’s condition was rated as 59% good to excellent and 31% fair. The North Dakota Wheat Commission indicated early reports pointed to higher-than-average yields. The Montana durum harvest was 5% completed compared with 1% a week earlier and zero as the five-year average for the date. The crop’s condition was rated as 51% good to excellent. FBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$26.00 $23.00 $20.00 $17.00

Semolina
Bookings of semolina, granulars and

Bakery ﬂour
Bulk, f.o.b. car, $ per cwt — Change from — Year Aug. 10 Aug. 3 July 27 ago Kansas City Bakers short patent Bakers standard patent Second clear Third clear Minneapolis Spring short patent Spring standard patent High gluten Whole wheat Specialty whole wheat Fancy spring clear First spring clear Rye, white Chicago Cracker Fancy cake New York Winter/spring blend Spring standard patent High gluten Fancy cake Rye, white Los Angeles Bakers standard patent Pastry 19.25 19.15 14.00 … 18.80 18.70 21.70 18.70 19.05 18.55 18.45 18.20 17.95 19.45 21.65 21.35 24.35 21.45 20.70 25.15 23.80 — -0.90 — -0.90 — — ... ... 0.40 0.40 0.40 0.40 0.40 0.40 0.40 -0.10 -0.20 -0.20 — — — -0.20 -0.10 — — -1.15 -1.15 -1.15 -1.15 -1.15 -1.15 -1.15 -0.50 -0.65 -0.65 -0.90 -1.60 -1.60 -0.65 -0.50 -0.90 -0.90 19.35 19.25 12.50 5.80 21.00 20.90 23.90 20.90 21.25 20.75 20.65 21.85 16.45 17.95 21.75 23.80 26.80 19.95 24.35 25.55 24.85

No. 1 hard amber durum
Track, Minneapolis — Change from — Year $ per bu Aug. 10 Aug. 3 July 27 ago Choice milling 13% 10.20 -.30 -.50 14.70 cents per bu Amber discount 10 — — 10 Durum discount 10@40 — — 10@40 Pufﬁng premium 0 — — 0
A N F
Previous Year

$14.00 $11.00 M
Current Year

Spring standard, Minneapolis
Bulk, f.o.b. car, $ per cwt
$33.00 $29.00 $25.00

Semolina
Bulk, f.o.b. Minneapolis, $ per cwt — Change from — Aug. 10 Aug. 3 July 27 Semolina 22.35 -.85 -1.60 Granulars 22.15 -.85 -1.60 Flour 22.05 -.85 -1.60 First clear 17.50 — — Second clear 13.00 — — Semolina - N.Y. 25.05 -.85 -1.60 Year ago 35.60 35.40 35.30 17.85 12.50 38.30

$21.00 $17.00 $13.00 A N F
Previous Year

M
Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$22.00 $18.00 $14.00 $10.00 A N F
Previous Year

Nationally advertised family ﬂour
Dollars Aug. 10 Family patent, 2-25s papers 24.12 4-10s n.a. 8-5s 18.62 18-2s 20.64 Self-rising n.a. Year ago 24.12 n.a. 18.62 20.64 n.a.

M
Current Year

FOODBUSINESS NEWS

August 14, 2012

Food Business News - August 14, 2012

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