Milling & Baking News - October 28, 2014 - 42

Ingredient Week 

Bakery Flour

Family Flour

Bookings of bakery flour were limited
last week. Prices advanced.
The most notable activity in bakery
flour involved basis coverage. Bakers
who earlier covered the futures component of prospective flour contracts for
the fourth quarter of 2014 last week took
basis coverage, which allowed them
to complete contracts for NovemberDecember. Bakers had been reluctant to
book basis, which held at historically
high levels in Minneapolis and Kansas
City. But with no significant break in the
cash basis expected, bakers bit the bullet. This activity mostly pertained to pan
bread flour and specialty bread bakers.
Cookie-cracker and specialty bakers
also continued to fill gaps in NovemberDecember coverage.
Millers indicated there was considerable inquiry about pricing flour deep
into 2015. They indicated the inquiry
was unusually strong for the time of
year. The discussions seemed to be preliminary, and no significant transactions
for coverage beyond the first quarter of
2015 were indicated.
The week's activity raised estimates
of bakers' commitments to October-December flour contracts (reflecting both
completed contracts and component
coverage) to about 90% of the potential
business in the quarter. First-quarter
commitments were estimated at 35%.
Mill grind was seasonally robust with
mills across most regions running six and
some as many as seven days last week. MBN

Bakery ﬂour

Semolina
Bookings of semolina, granulars and
durum flour were limited last week.
Prices remained historically strong, sustained by a firm cash durum market.
The price of choice milling hard amber durum at the Chicago gateway was
quoted at a nominal $20 a bu, unchanged
from the previous week. Quotes ranged
from $19 to $21, depending on availability and quality. The Minneapolis durum
price was a nominal $19.70 a bu.
The durum harvest across the northern Plains was all but completed. Only
scattered fields were yet to be harvested

in North Dakota and Montana. The quality of the crop was disappointing by recent standards. This seemed to be true
not only of the northern Plains crop but
of the Canadian crop as well.
Farmer selling has been light. Growers binned most of their crop and were
determining exactly what quality they
might have to sell. There likely will be
much blending with what remained
from earlier crops to bring average
quality to the level demanded by mills.
At the same time, without doubt, there
was some excellent durum harvest. It
just remained to be seen how the crop
overall will be marketed in the coming
months.
Pasta manufacturers earlier completed booking nearly all of the semolina needs through the end of the year.
January-March coverage was estimated
at 35% to 40%. Coverage beyond March
was negligible.
Durum millers remained concerned
about rail logistics during the next few
months. The fall crops' demand on rail
transportation continued to increase,
and winter was approaching, which
was expected to increase energy-related
transport needs. Last winter was a logistical nightmare the trade hopes will not
be repeated. MBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$24.00
$22.00
$20.00

No. 1 hard amber durum

Bulk, f.o.b. car, $ per cwt
- Change from - Year
Oct. 24 Oct. 17 Oct. 10 ago
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

Sales of national and regional brands
of family flour were seasonally brisk last
week. Carlot list prices were unchanged.
Packaging lines were running full
schedules. Mills' warehouses were being
filled to accommodate the increased orders. September was a strong month for
family flour sales, and October volume
seemed to be on par with that seen a year
ago for the same month.
As the fall baking season approaches,
it was expected production promotions
will become more pervasive. It was expected promotions would be similar to
those seen during last year's baking season, when offers of two 5-lb bags for $5
were commonplace with scattered offers
as low as two bags for $4.
Private label flour buyers earlier covered their flour needs through the end of
2014. MBN

Track, Chicago
$ per bu
Oct. 24
Choice milling 13% 20

- Change from - Year
Oct. 17 Oct. 10 ago
-
-
9.50

$18.00
$16.00
O

Previous Year

17.75
17.65
14.00
...

0.05
0.05
-
...

0.45
0.45
-
...

19.95
19.85
14.00
...

Track, Minneapolis
$ per bu

18.75
18.65
21.65
18.65
19.00
18.50
18.40
23.10

1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.25

1.65
1.65
1.65
1.65
1.65
1.65
1.65
0.60

19.20
19.10
22.10
19.10
19.45
18.95
18.85
22.90

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Oct. 24 Oct. 17 Oct. 10
Semolina
49.40
+.15
+.40
Granulars
49.20
+.15
+.40
Flour
49.10
+.15
+.40
First clear
...
...
Second clear
...
...
Semolina - N.Y. 52.20
+.15
+.40

12.95
14.45

0.25
0.25

0.70
0.70

16.45
17.95

20.15
21.05
24.05
16.45
25.60

0.05
0.75
0.75
0.25
0.25

0.45
1.05
1.05
0.70
0.60

22.35
21.70
24.70
19.95
25.40

22.65
22.70

0.05
0.05

25.45
25.30

42 / October 28, 2014 Milling & Baking News

Choice milling 13% 19.70

Current Year

Spring standard, Minneapolis
-

9.50

Bulk, f.o.b. car, $ per cwt
$27.00

Semolina

$25.00
$23.00

Year
ago
22.15
21.95
21.85
17.55
13.50
24.85

Nationally advertised family ﬂour

$21.00
$19.00
$17.00
$15.00
O

A
Previous Year

J
Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$21.00

Dollars
Oct. 24
Family patent, 2-25s papers 24.12
4-10s
n.a.
8-5s
18.52
18-2s
20.64
Self-rising
n.a.

$19.00

Year ago
24.12
n.a.
18.52
20.64
n.a.

$17.00
$15.00
$13.00
$11.00
$9.00
O

A
Previous Year

J
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - October 28, 2014

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