Milling & Baking News - September 18, 2012 - 4

Contents 

September 18, 2012 Vol. 91, No. 15

 BREAD INDUSTRY PERSPECTIVE

 NEWS Comment

Julie Miller Jones analyzes William Davis' wheat indictments
Story on Page 1

Wheat tie to corn market comes into sharp focus
This is turning into a crop season that once and for all shows the huge inﬂuence that the corn supply-demand situation exerts over wheat. As emphasized by last week’s crop report, wheat production this year will be 13% above the prior year and the supply for only the second time in the past seven years will exceed 3 billion bus. This situation seems dramatically better than the dire condition in corn where the outturn has suffered hugely from drought and heat. Sure, wheat strength this year has lagged skyrocketing corn and soybeans, but why should it be as strong as it has been? Putting aside the dramatically different crop condition this year, wheat has actually been losing its historical premium to corn. In the past decade, the wheat to corn price ratio, measured globally, has been 1.4. It is currently slightly above 1.1. Recent analysis by the Organization for Economic Cooperation and Development and Food and Agriculture Organization points to likely contraction of that ratio as corn supplydemand tightens related to wheat. Grain-based foods realizes, if not accepts, that prices for its basic ingredient are closely tied to corn. Yet, the forces accounting for this different relationship need to be understood. Wheat demand, mainly for food, is seen as less elastic than corn, where demand is powerfully affected by response of feed and biofuel outlets to price changes. The steadiness of food demand thus is overridden by the volatility in corn, accentuating the increasing complexity of global grain markets. MBN

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Mandates or markets?
Story on Page 44

‘Wheat Belly’ coverage draws NAWG statement

The National Association of Wheat Growers stresses wheat’s nutritional benefits in response to media coverage for the book “Wheat Belly.”

Mondelez will have powerful U.S. snack presence

Irene Rosenfeld, chief executive officer of Kraft Foods Inc., details how Mondelez International will succeed after spinning off from Kraft.

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Snyder’s-Lance looks to add Pretzel Crisps brand

    DEPARTMENTS
7 10 16 18 22 24 26 44 46 47 49 57 62 Editorial Business Financial Results Data Merchandising Nutrition and Health People Washington International Industry Activities Ingredient Week Trends Supplier Innovations Archive

Snyder’s-Lance, Inc. proposes to acquire Snack Factory, L.L.C., which would add Pretzel Crisps to the company’s lineup of core brands.

Quaker moves to front and center of breakfast menus

McDonald’s Corp. and Dunkin’ Donuts use Quaker Oats oatmeal while a partnership between IHOP and Quaker will lead to a proprietary blend of oatmeal.

Campbell baking unit earnings fall 11%

Fiscal-year operating earnings within the Campbell Soup Co.’s Global Baking and Snacking division drop after cost inflation and increased promotional spending.

    COMPANIES IN THIS ISSUE
AMF Bakery Systems ................. 10 American Key Food Products ..... 57 Arla Food Ingredients ................ 57 BakeTech ................................... 10 Barilla S.p.A............................... 10 Burger King Corp....................... 14 Campbell Soup Co. .................... 16 ConAgra Foods, Inc. .................. 13 Corner Bakery Cafe ..................... 8 Cybros The Sprouted Bakehouse ............................. 13 Doehler ..................................... 57 Dunkin’ Brands, Inc. .................. 14 Emsland Group ......................... 57 Flavor Waves, Inc....................... 22 Food For Life Baking Co............. 22 Functional Technologies Corp. ... 57 General Mills, Inc. ..................... 46 H&S Bakery ............................... 26 Hostess Brands, Inc. ............ 16, 29 IHOP.......................................... 14 Kellogg Co. ................................ 24

Kraft Foods Inc. ......................... 11 La Tortilla Factory ...................... 26 Markel Corp. ............................. 10 McDonald’s Corp. ...................... 14 Middleby Corp........................... 11 Miller Baking Co........................ 13 MOM Brands............................. 11 Mondelez International ............. 11 PepsiCo, Inc. .............................. 14 Quaker Oats Co. ........................ 14 Reading Bakery Systems ........... 10

Roman Meal Co........................... 8 Scoular Co. ................................ 26 Snack Factory, L.L.C. .................. 12 Snyder’s-Lance, Inc. ................... 12 Stewart Systems Global, L.L.C. .. 11 TIC Gums .................................. 57 Tromp Bakery Equipment B.V..... 10 Viterra Inc.................................. 16 Yoki Alimentos .......................... 46

4 / September 18, 2012 Milling & Baking News

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Milling & Baking News - September 18, 2012

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