Food Business News - February 11, 2014 - (Page 45)

INGREDIENTMARKETTRENDS In The Spotlight At A Glance Weather woes continue to affect markets arkets continued to deal with an array of weather events, from drought and high temperatures in the West to snow and frigid temperatures in much of the rest of the country, leaving few markets untouched. The latest rendition of winter storms forced major flour mills to briefly close in Ohio and nearby states last week. California's governor Jerry Brown declared a drought emergency in the state a couple of weeks back as some reservoirs were at historically low levels, snow pack was woefully short and forecasts for the rest of the winter rainy season appeared bleak. Although parts of the state received some moisture late last week, meteorologists agreed it was inadequate to break the drought and dryland crops, including winter wheat, continued to suffer while irrigation continued in orchards and other highvalue crops. The severe weather complicated already poor logistics across the Upper Midwest. As has been previously noted, railroads' focus on moving crude oil has limited locomotive and engineer resources to move agricultural products. Already laggard movement was worsened when cold weather further slowed rail movement, especially from the Upper Midwest. A sugar trader noted M one railroad that usually moves 40 trains a day through its Chicago switching facility briefly stopped receiving trains about two weeks ago and was allowing only two trains a day last week. The logistics backlog forced one major sugar beet processor to store refined sugar, until facilities filled, and then to slow processing operations. Food manufacturers scrambled to find sugar from alternative sources to keep factories running in some cases, not unlike some bakers and baking mix facilities who ran out of flour due to slow rail logistics a couple of weeks earlier. The winter weather has been a mixed blessing for the U.S. winter wheat crop. Although dormant, the crop benefits by snow cover that protects it from frigid temperatures. The snow cover was mostly lacking, especially in the hard red winter wheat states of the Southwest, until last week when six inches or more of snow fell across much of the region. But that wasn't before wheat futures prices soared nearly 50c a bu, or 8%, last week from late January lows, basis the nearby Kansas City contract, in part on lower crop condition ratings. Wheat futures prices had declined more than 20% from late October highs near $7.75 a bu before last week's turnaround, which also was aided by strong export sales data. FBN U.S. frozen apple juice concentrate imports New Zealand 4% Turkey 11% China 49% Other 1% Brazil 35% Source: National Apple Processing Report Soybean futures prices per bu $15 $14 $13 $12 $11 Feb. April 2013 June Aug. Oct. Dec. Feb. 2014 Ingredient Indexes M i Mayonnaise Commodity Trends Pork Sausage Winter wheat crop condition ratings 71% 79% 63% 77% South Dakota 20% 5% 14% 8% 3% Dec. 31, 2013 Nebraska 32% Jan. 31, 2014 Texas 58% 63% 22% 65% 70% 35% 36% 19% 46% 60% per cent rated good to excellent Kansas Oklahoma Nov. 24, 2013 Jan. 31, 2013 Source: U.S. Department of Agriculture February 11, 2014 NEWS 45 FOODBUSINESS ® December FOODBUSINESS NEWS 17, 2013 45 ®

Table of Contents for the Digital Edition of Food Business News - February 11, 2014

Food Business News - February 11, 2014
Post to buy PowerBar from Nestle
Beverage ingredients in the spotlight
Beef prices are red hot
Table of Contents
Web Contents
Editorial - Cause marketing gaining momentum
Green Mountain, Coca-Cola form partnership
McDonald’s is learning less is more
F.D.A. proposes sanitary food transportation rule
Price increase still planned for Chipotle
Inside Tyson Foods’ prepared foods strategy
Beef, chicken drive gains for Tyson
Meat costs will hinder Hillshire in second half
Meijer to build dairy facility in Ohio
Hershey seeks to set new bar in spreads
Washington - Putting the new farm bill in focus
Health and Wellness - Digesting the additional benefits of gut health
Are designer fibers on the horizon?
Ingredient Innovations - Making cereal more satisfying
More satiety strategies
Beverage Business News - Beverage ingredients in the spotlight
New Food Products
Ingredient Market Trends - Weather woes continue to affect markets
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 11, 2014