Milling & Baking News - January 7, 2014 - 32

Ingredient Week 

Bakery Flour
Bookings of bakery were limited during New Year's week. Prices surged as
historically strong cash wheat premiums
and dropping millfeed values offset the
effect of continued weakness in futures.
Across most of the country, bakery
flour markets were in a typical holiday
lull, but this was not universally the
case. Early in the week, in individual
instances, cookie-cracker and specialty
bakers extended soft flour coverage into
July-September and even October-December of 2014. These bakers saw flour
prices dip into targeted ranges for their
budgets and decided to put on the coverage. This was exceptional business not
seen in the markets for pan bread flour
and for flour milled from spring wheat.
Before the midweek break for New
Year's Day, some bakers booked whatever components were required to complete flour contracts for January and
February. It was suggested about 80%
of January's flour needs was booked by
the time the components were wrapped
up with January-March coverage (all
components accounted for) estimated
at 60%. Coverage was extended further
in the case of spring grades followed
by soft flour and then pan bread flour.
The historically strong cash hard winter
wheat basis continued to be a disincentive to more aggressive coverage in the
latter market.
Cash spring wheat premiums also were
historically strong as were bids of soft red
winter wheat across much of the country.

Bakery ﬂour

Family Flour
Sales of regional and national brands
of family flour were seasonally light last
week. Carlot list prices were unchanged.
Manufacturers trimmed production
schedules because of the winter holidays
and because the key season for home
baking was over. Most suggested volume during the baking season was similar to that seen the previous year.
Family flour was being offered at bargain prices at many grocery stores selling off surplus stock after the holidays.
It was expected milling for family flour
will begin to pick up again toward the
end of February as inventories are built to
accommodate an increase in demand that
typically takes place before Easter. MBN

Semolina
Bookings of semolina, granulars
and durum flour were light last week.
Prices bolted higher as Upper Midwest
millfeed values buckled.
Quotes on choice milling hard amber
durum at the Chicago gateway varied widely. Some millers suggested the
Chicago price was as low as $9.25 a bu
while acknowledging spot cars have

traded much higher. Others pegged the
Chicago price a dollar higher to account
for those occasional spot purchases. This
page provides a nominal quote at $9.80
a bu. There was a formidable inverse in
the cash durum market amounting to
about 50c a bu when comparing March
delivery to the nearby.
All agreed the spot market was underpinned by ongoing problems in receiving
durum rail shipments in a timely manner.
North American durum supplies were
more than adequate for demand. The
problem was in "getting wheels under
the crop," one merchandiser commented.
While grain shipments related to the
fall crop harvest have waned, railroads
still had to accommodate large export
programs, especially for soybeans, and
heavy demand placed on track and power
from non-agricultural sectors, particularly the energy sector. The invasion of frigid
arctic air also slowed progress in loading
and shipping durum. Rail logistics were
further complicated by an oil train derailment and fire in North Dakota.
Pasta manufacturers were mostly on
the sidelines last week having booked
about 75% of their prospective firstquarter 2014 requirements before the
winter holidays. April-June coverage
was estimated at about 15%. MBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$23.00
$21.00
$19.00

No. 1 hard amber durum

Bulk, f.o.b. car, $ per cwt
Jan. 3
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

Flour grind increased in most regions
last week with many mills running
through the weekend to make up for
the mid-week holiday. Grind averaged
about five days, ranging from four to six
days, with the exception of the Northeast,
which lost a day from the prior week,
making grind lighter than expected. MBN

- Change from - Year
Dec. 27 Dec. 20 ago

Track, Chicago
$ per bu
Jan. 3
Choice milling 13% 9.80

- Change from - Year
Dec. 27 Dec. 20 ago
-
-
10.00

0.50
0.50
-
...

0.95
0.95
-
...

19.90
19.80
14.00
...

Track, Minneapolis
$ per bu

19.55
19.45
22.45
19.45
19.80
19.30
19.20
22.50

1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.75

2.20
2.20
2.20
2.20
2.20
2.20
2.20
1.40

19.15
19.05
22.05
19.05
19.40
18.90
18.80
21.75

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Jan. 3
Dec. 27 Dec. 20
Semolina
23.00
+.50
+.90
Granulars
22.80
+.50
+.90
Flour
22.70
+.50
+.90
First clear
17.55
-
-
Second clear 13.50
-
-
Semolina - N.Y. 25.70
+.50
+.90

15.30
16.80

0.50
0.50

0.85
0.85

16.95
18.45

20.50
21.75
24.75
18.80
25.00

0.50
0.75
0.75
0.50
0.75

0.95
1.70
1.70
0.85
1.40

22.30
21.25
24.25
20.45
24.25

23.60
23.45

0.50
0.50

0.95
0.95

25.35
24.80

32 / January 7, 2014 Milling & Baking News

$15.00
J

J
Previous Year

18.10
18.00
14.00
...

Choice milling 13% 9.50

$17.00

O
Current Year

Spring standard, Minneapolis
-

10.00

Bulk, f.o.b. car, $ per cwt
$25.00

Semolina

$23.00

Year
ago
23.35
23.15
23.05
17.50
13.00
26.05

Nationally advertised family ﬂour

$21.00
$19.00
$17.00
$15.00
J

J
Previous Year

O
Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$22.00

Dollars
Jan. 3
Family patent, 2-25s papers 24.12
4-10s
n.a.
8-5s
18.52
18-2s
20.64
Self-rising
n.a.

$20.00

Year ago
24.12
n.a.
18.62
20.64
n.a.

$18.00
$16.00
$14.00
$12.00
J

J
Previous Year

O
Current Year

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - January 7, 2014

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