Milling & Baking News - July 24, 2012 - 46

Ingredient Week 

Bakery Flour
Bookings of bakery ﬂour were limited last week. Prices advanced. Bakers employed different approaches to booking ﬂour in the midst of the rally in wheat futures prices, and many held to the sidelines. While the winter wheat harvest was nearly completed without a hitch and the spring wheat harvest was well under way, an expanding drought threatened corn and soybean crop prospects, and wheat prices were pulled higher by these surging markets. Soaring corn futures prices also pulled millfeed values sharply higher, and some bakers covered the millfeed component of prospective ﬂour bookings in response. At the same time, activity in millfeed was heavy a few weeks earlier, so new business last week was more constrained than it otherwise might have been. Cash hard winter wheat premiums in Kansas City continued to drop, and the spring wheat market was weak after recent side declines. Bakers continued to add to their forward basis coverage. By covering outstanding components, several bakers added to their ﬂour ownership in the third and fourth quarters of 2012. Activity was most pronounced in pan bread ﬂour and spring grades, but individual cookie-cracker and specialty bakers put on at least a portion of basis needs in connection with soft ﬂour bookings into 2013 and in some instances through the crop year. One miller estimated pan bread ﬂour coverage in the third quarter at 75%,

although others put the percentage a bit lower. Coverage in the fourth quarter was estimated between 30% and 40%. Flour grind varied last week from about ﬁve days to as many as seven, averaging 5½ to six. Heat-related downtime and planned weekend fumigations reduced grind at individual mills. MBN

Family Flour
Sales of national and regional brands of family ﬂour were seasonally sluggish last week. Carlot list prices were unchanged. Scorching temperatures across much of the nation ensured kitchens and ovens held no appeal for home bakers. Demand for family ﬂour remained routine for what is the slowest time of the year for usage. Manufacturers were preparing for the upcoming baking season. In many cases, sellers of private label ﬂour already have agreed with their principal buyers on trade activation initiatives for the fall. In some instances, contract prices were established, leaving manufacturers concerned over margin should wheat prices continue to escalate. Pre-packaging for the baking season will begin at a number of locations in the next few weeks. MBN

Semolina
Bookings of semolina, granulars and durum ﬂour expanded last week. Prices advanced. Semolina prices were moved higher in response to an advancing price of

durum. The price of choice milling hard amber durum quoted as a delivered Chicago/beyond value was $10.50 a bu, up 25c from the previous week. The Minneapolis price was $10.20 a bu. Individual pasta manufacturers put on additional coverage in both the third and fourth quarters of 2012. One durum miller indicated July-September semolina coverage was up to about 90% of the potential with fourth-quarter coverage at about 60%. Durum mill grind was about six days last week, marking an improvement from operating schedules in May and June. The North Dakota durum harvest may begin in a couple of weeks, commented one crop observer, which would be well ahead of what was an average starting date. North Dakota durum was 17% turning color by July 15 compared with 3% as the recent ﬁve-year average for the date, according to the state’s U.S. Department of Agriculture ﬁeld ofﬁce. The state’s durum was rated 66% good to excellent (83% a week earlier) and 28% fair with hot-and-dry weather beginning to exact a toll. Montana durum was 5% turning color on July 15 compared with 0% as the average for the date. Montana durum was rated 76% good to excellent (61% a week earlier) with 19% fair. 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 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 — Change from — Year July 20 July 13 July 6 ago 21.65 21.55 14.00 … 22.50 22.40 25.40 22.40 22.75 22.25 22.15 19.30 20.60 22.10 24.05 25.45 28.45 24.10 21.80 27.55 25.75 0.80 0.80 — ... 1.30 1.30 1.30 1.30 1.30 1.30 1.30 -0.75 1.50 1.50 0.80 1.05 1.05 1.50 -0.75 3.45 1.15 1.30 1.30 — ... 1.70 1.70 1.70 1.70 1.70 1.70 1.70 -1.15 2.20 2.20 1.30 1.65 1.65 2.20 -1.15 3.95 1.65

No. 1 hard amber durum
Track, Minneapolis $ per bu July 20 Choice milling 13% 10.20 cents per bu 19.25 Amber discount 10.00 19.15 Durum discount 10@40 12.50 Pufﬁng premium 0 5.80 — Change from — Year July 13 July 6 ago +.25 +.75 16.20 — — — — — — 10.00 10@40 0
A
Current Year

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

Semolina

23.35 23.25 26.25 23.25 23.60 23.10 23.00 21.55 16.10 17.60 21.65 26.00 29.00 19.60 24.05 24.40 24.45

Bulk, f.o.b. Minneapolis, $ per cwt — Change from — July 20 July 13 July 6 Semolina 23.50 +.15 +1.15 Granulars 23.30 +.15 +1.15 Flour 23.20 +.15 +1.15 First clear 17.50 — — Second clear 13.00 — — Semolina - N.Y. 26.20 +.15 +1.15

Year ago 39.15 38.95 38.85 17.85 12.50 41.85

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

A
Current Year

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

Nationally advertised family ﬂour
Dollars July 20 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.

A
Current Year

46 / July 24, 2012 Milling & Baking News

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Milling & Baking News - July 24, 2012

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