Milling & Baking News - November 11, 2014 - 44

Ingredient Week 

Bakery Flour
Bookings of bakery flour were limited
last week. Price changes were mixed
with a softer tone in the market for pan
bread flour but stronger pricing for soft
flour. Spring standard patent ended the
week unchanged.
The early-week drop in the cash hard
winter wheat basis failed to generate
much business. Many bread bakers seeking to fill gaps in November-December
flour coverage bit the bullet and covered
the basis component of prospective flour
contracts a couple of weeks ago, so the
basis drop didn't have a dramatic impact on the market. The weaker basis
was welcomed by flour buyers, though,
who hoped it would pull down the deferred basis levels as well in the weeks
ahead. At the same time, basis direction
was anything but certain as winter approached with the possible swipes it
may take at rail logistics.
The historically strong cash spring
wheat basis discouraged a more aggressive stance on the part of specialty bread
bakers and other spring grade users.
Nevertheless, coverage for NovemberDecember was being filled in.
A few bakers covered millfeed credits in connection with prospective firstquarter flour contracts.
Bread bakers' commitments to January-March flour contracts, comprising
both completed bookings and positions
requiring adding component coverage,
were estimated at 35% to 40% of the quarter's prospective business. Completed

Bakery ﬂour

Family Flour
Sales of national and regional brands
of family flour were seasonally brisk last
week. Carlot list prices were unchanged.
With Thanksgiving only three weeks
away, orders were being placed at a rapid clip. The weeks just before Thanksgiving typically are the busiest of the year in
the family flour market as home bakers
prepare for holiday meals.
Product promotions increased. It was
expected in the couple of weeks before
Thanksgiving, family flour will be offered
at two 5-lb bags for $5 in several markets
with some promotions more aggressive.
Forward business in the market for
private label expanded during the past
couple of weeks. One manufacturer said
many of his customers have booked
flour through April, which would provide for the annual buildup in activity
before Easter. He indicated between 40%
and 50% of his prospective flour sales for
January-April have been completed. MBN

Semolina
Bookings of semolina, granulars and
durum flour expanded last week. Prices
remained historically strong and were
more than double those of a year ago.
The price of choice milling hard amber

durum at the Chicago gateway remained
a nominal $20 a bu. Some recent spot
trades were at higher levels.
Pasta manufacturers earlier covered
nearly all of their semolina requirements
through December, and what booking
was taking place was for January-March
2015. Business for that quarter was completed at lower price levels than spot
transactions, but deferred price levels
nevertheless were high by any measure.
Millers estimated pasta makers may
have covered up to 65% of their firstquarter semolina requirements.
Problematic rail logistics and concerns
conditions may worsen with the approach of winter weather provided underpinning to the cash durum market.
But also a consideration was the lackluster average quality in the 2014 crop. The
average grade of the 2014 crop was No. 2
amber durum compared with No. 1 hard
amber durum last year. Farmers with
durum falling short of mill specifications
grappled with how to market their crop,
and this curbed farmer sales.
Durum mill grind was heavy at those
units that have been able to sustain durum pipelines. But in instances, mills
have run short of supply in recent weeks,
which kept them from running full out as
would be typical for the time of year. 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
Nov. 7
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

contracts represented about 20% of the
quarter's expected business.
Cookie-cracker and specialty bakers
had slightly less extensive coverage.
Mill grind was strong and averaged
about six days in most regions. MBN

Track, Chicago
- Change from - Year $ per bu
Nov. 7
Oct. 31 Oct. 24 ago Choice milling 13% 20.00

- Change from - Year
Oct. 31 Oct. 24 ago
-
-
9.45

$18.00
$16.00
N

Previous Year

17.00
16.90
14.00
...

-0.70
-0.70
-
...

-0.75
-0.75
-
...

19.65 Track, Minneapolis
19.55 $ per bu
14.00 Choice milling 13% 19.70
...

19.00
18.90
21.90
18.90
19.25
18.75
18.65
23.70

-
-
-
-
-
-
-
0.25

0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.60

18.80
18.70
21.70
18.70
19.05
18.55
18.45
23.85

14.00
15.50

0.50
0.50

1.05
1.05

16.25
17.75

19.40
20.75
23.75
17.50
26.20

-0.70
-0.40
-0.40
0.50
0.25

-0.75
-0.30
-0.30
1.05
0.60

22.05
20.75
23.75
19.75
26.35

21.90
21.95

-0.70
-0.70

-0.75
-0.75

25.15
25.00

44 / November 11, 2014 Milling & Baking News

Current Year

Spring standard, Minneapolis
-

9.15

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

Semolina

$25.00

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Nov. 7
Oct. 31 Oct. 24
Semolina
49.80
+.20
+.40
Granulars
49.60
+.20
+.40
Flour
49.50
+.20
+.40
First clear
...
...
Second clear
...
...
Semolina - N.Y. 52.60
+.20
+.40

$23.00

Year
ago
22.65
22.45
22.35
17.55
13.50
25.35

Nationally advertised family ﬂour

$21.00
$19.00
$17.00
$15.00
N

M
Previous Year

A
Current Year

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

Dollars
Nov. 7
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
N

M
Previous Year

A
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - November 11, 2014

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