Milling & Baking News - July 10, 2012 - 44

Ingredient Week 

Bakery Flour
Bookings of bakery ﬂour were limited during the holiday-shortened week. Prices surged higher. With wheat futures prices on an upward tear, it seemed the safest place to stand was on the sidelines. At the same time, not all bakers were positioned to do so, and some had to make the painful decision to ﬁll gaps in July-August coverage. Defensive hedging in September, December and even March and May wheat futures was indicated as some bakers decided it was necessary to have at least some futures coverage on the books in the event the price direction doesn’t reverse. Individual bakers with buyers who have menu pricing to consider and protect took some ﬂour coverage into the ﬁrst quarter of 2013. By the week’s end, millers increased slightly their estimates of bakers’ ﬂour coverage for the third quarter. Most millers indicated pan bread ﬂour coverage for July-September was about 60%, although some said the percentage was higher. Commitments to ﬂour contracts where coverage of one or more components might still be outstanding were signiﬁcant, which allowed many bakers to hold off on additional contracting in the hope prices moderate. The cash basis was dropping in Kansas City, which may encourage coverage of that component in bread ﬂour pricing. The cash spring wheat market steadied following wide declines sustained the previous week. Millfeed

prices advanced in most markets. Flour grind eased last week as most mills were down Wednesday for the July 4 holiday, but several mills ran part or all of the weekend of July 7-8 to make up the time. The average grind was ﬁve days. MBN

Family Flour
Sales of national and regional brands of family ﬂour were seasonally slow last week. Carlot list prices were unchanged. Most home bakers steered clear of kitchens as temperatures soared across much of the nation. No signiﬁcant increase in home baking was expected until the approach of the fall baking season, leaving demand for family ﬂour limited and mostly routine. Developments in branded product were few and far between. Manufacturers of private label ﬂour were planning baking season promotions with their customers. Many contracts already were concluded, and manufacturers nervously eyed surging wheat markets, which may seriously eat into margins. Prepacking for the baking season was expected to begin at many plants. MBN

Semolina
Bookings of semolina, granulars and durum ﬂour were light last week. Price changes were minor. The price of choice milling hard amber durum quoted as a delivered Chicago/ beyond value was $9.75 a bu, which equated to a Minneapolis price of $9.45

a bu. The market weighed the impact of sharply higher prices for the other classes of wheat against the outstanding condition of the durum group well into the growing season. Pasta manufacturers earlier covered about 85% of their prospective semolina needs through the third quarter. October-December coverage was about 25%. Pasta makers were hopeful cash durum prices would be able to resist the upward trend seen in the other wheat classes because the outlook for the 2012 durum crop seemed so promising. The U.S. Department of Agriculture indicated that 67% of North Dakota durum was headed by July 1 compared with 16% as the recent ﬁve-year average for the date. Rated good to excellent was 83% of the North Dakota durum crop with 19% fair. That compared with 92% good to excellent a week earlier. The U.S.D.A. pointed to the heat wave, which began to deplete soil moisture, as the culprit in the drop. Montana durum was 35% headed on July 1 compared with 0% as the average for the date. The state’s durum was rated 87% good to excellent (74% a week earlier) and 11% fair. Durum mill grind averaged about ﬁve days last week. MBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$26.00 $23.00 $20.00 $17.00 $14.00 $11.00 J O J
Previous Year

Bakery ﬂour
Bulk, f.o.b. car, $ per cwt July 6 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 20.35 20.25 14.00 … 20.80 20.70 23.70 20.70 21.05 20.55 20.45 20.45 18.40 19.90 22.75 23.80 26.80 21.90 22.95 23.60 24.10 — Change from — Year June 29 June 22 ago 0.60 0.60 — ... 1.10 1.10 1.10 1.10 1.10 1.10 1.10 -0.20 1.05 1.05 0.60 1.25 1.25 1.05 -0.20 0.60 0.60 1.15 1.15 — ... 0.55 0.55 0.55 0.55 0.55 0.55 0.55 -0.45 2.40 2.40 1.15 0.55 0.55 2.40 -0.45 1.15 1.15

No. 1 hard amber durum
Track, Minneapolis $ per bu Choice milling 13% cents per bu 20.10 Amber discount 20.00 Durum discount 12.50 Pufﬁng premium 5.80 July 6 9.45 10.00 10@40 0 — Change from — Year June 29 June 22 ago — +.50 17.20 — — — — — — 10.00 10@40 0
A
Current Year

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

Semolina

24.70 24.60 27.60 24.60 24.95 24.45 24.35 21.60 15.50 17.00 22.50 27.30 30.30 19.00 24.10 23.35 23.10

Bulk, f.o.b. Minneapolis, $ per cwt — Change from — July 6 June 29 June 22 Semolina 22.35 -.15 +.95 Granulars 22.15 -.15 +.95 Flour 22.05 -.15 +.95 First clear 17.50 — — Second clear 13.00 — — Semolina - N.Y. 25.05 -.15 +.95

Year ago 42.00 41.80 41.70 17.85 12.50 44.70

$25.00 $21.00 $17.00 $13.00 J O J
Previous Year

A
Current Year

Nationally advertised family ﬂour
Dollars July 6 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.

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$22.00 $18.00 $14.00 $10.00 J O J
Previous Year

A
Current Year

44 / July 10, 2012 Milling & Baking News

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Milling & Baking News - July 10, 2012

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