Milling & Baking News - August 2, 2016 - 32

Ingredient Week X

Bakery Flour
Bookings of bakery flour were limited last week. Prices were lowered. The
downward adjustment to spring grade
pricing was slight.
Millers indicated flour markets were
mostly quiet. They estimated flour coverage for the third quarter of 2016 was
nearly completed. Coverage for October-December was pegged at about
50%. This reflected completed contracts.
When component positions, primarily futures coverage, were taken into
account, bakers' commitments to fourthquarter coverage was much more extensive. Futures coverage for many bakers
extended into the fourth quarter and
even into January-March 2017.
Cookie-cracker and specialty bakers'
flour coverage was beginning to close in
on that held by bread bakers. One soft
flour miller indicated several major bakers recently have extended contract balances into October-December. Among
select majors, he said, coverage for that
quarter was approaching 75%.
Soft flour pricing remained skewed by
regional differences. The soft red winter
wheat crop in the Central states had quality much superior to that of the crops harvested there in the last couple of years, and
the cash wheat basis has weakened. But
the crop in the Southeast was small, and
quality there was relatively poor. Heavy
demand for quality soft red winter wheat
to grind in the East translated to a strong
cash market there and propped up the cash
wheat values in the Central states, which

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

otherwise would have been even weaker.
Bread bakers and hard red winter
wheat millers braced for what was expected to be a rugged transition to working with mostly new crop supply. Blends
of flour milled from hard red spring
wheat and hard red winter wheat were
expected to take on greater importance
to buyers whose products require higher
protein in the flour.
Mill grind average 5½ to six days
across much of the country. MBN

Family Flour
Sales and shipments of national and
regional brands of family flour were
seasonally sluggish last week. Carlot list
prices were unchanged, serving simply
as a starting point for negotiations between buyers and sellers.
The summer doldrums ruled with
home bakers not expected to provide
much verve to the market until near the
beginning of the 2016-17 school year and
the fall baking season. But manufacturers
and their customers weren't idle. Summer was the perfect time to begin planning of marketing programs for the fall.
In the market for private label flour,
grocery chains, mass merchandisers, club
stores and other principal buyers continued
to fill gaps in October-December coverage.
In instances, major accounts considered
coverage into the first quarter of 2017. MBN

were lowered as the cash durum market
continued to soften.
The price of choice milling hard amber
durum as quoted at the Chicago gateway for delivery beyond was $8 a bu,
down 25c from the previous week. The
Minneapolis price was $7.70 a bu. Cash
durum trading was minimal.
Pasta manufacturers earlier covered
virtually all their semolina needs for the
third quarter. Coverage beyond September was lean with all eyes on the northern Plains durum crop, which was nearing harvest in outstanding condition.
The U.S. Department of Agriculture
indicated the Arizona durum harvest
was 98% completed by July 24 compared
with 90% a week earlier and 96% as the
recent five-year average for the date.
Indications were after desert durum
flowed into domestic marketing channels outside the growing region earlier
during the harvest, this movement has
subsided as the market anticipated the
beginning of the northern Plains harvest.
The North Dakota durum crop was
95% headed by July 24 compared with
71% as the five-year average, and durum
turning color was 52% versus 23% as the
average. The crop was rated 87% good
to excellent, 10% fair and only 3% poor
to very poor. MBN

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

Semolina
Bookings of semolina, granulars and
durum flour were light last week. Prices

$18.00
$16.00

No. 1 hard amber durum
Track, Chicago
- Change from - Year $ per bu
July 29
July 29 July 22 July 15 ago Choice milling 13% 8.00
12.35
12.25
12.00
...

-0.40
-0.40
-
...

0.10
0.10
-
...

14.65 Track, Minneapolis
14.55 $ per bu
12.00 Choice milling 13% 7.70
...

12.90
12.80
15.80
12.80
13.15
12.65
12.55
16.30

-0.05
-0.05
-0.05
-0.05
-0.05
-0.05
-0.05
-

-0.05
-0.05
-0.05
-0.05
-0.05
-0.05
-0.05
-0.10

14.65
14.55
17.55
14.55
14.90
14.40
14.30
22.85

11.15
12.65

-0.70
-0.70

-0.80
-0.80

13.90
15.40

14.75
15.15
18.15
14.65
18.80

-0.40
-0.05
-0.05
-0.70
-

0.10
0.15
0.15
-0.80
-0.10

17.05
17.20
20.20
17.40
25.35

17.45
17.50

-0.40
-0.40

0.10
0.10

19.55
19.60

32 / August 2, 2016 XMilling & Baking News

- Change from - Year
July 22 July 15 ago
-.25
-.25 12.00

$14.00
$12.00
J

J
Previous Year

A
Current Year

Spring standard, Minneapolis
-.25

-.25

11.70

Bulk, f.o.b. car, $ per cwt
$28.00

Semolina

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
July 29
July 22 July 15
Semolina
19.50
-.65
-.70
Granulars
19.30
-.65
-.70
Flour
19.20
-.65
-.70
First clear
16.00
...
...
Second clear 12.00
...
...
Semolina - N.Y. 22.30
-.65
-.70

$24.00

Year
ago
29.20
29.00
28.90

$20.00
$16.00
$12.00
J

J
Previous Year

Current Year

Cracker ﬂour, Chicago

32.00

Nationally advertised family ﬂour

Bulk, f.o.b. car, $ per cwt
$18.00

Dollars
July 29
Family patent, 2-25s papers 24.12
4-10s
n.a.
8-5s
18.52
18-2s
20.64
Self-rising
n.a.

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

$16.00
$14.00
$12.00
$10.00
J

J
Previous Year

A
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - August 2, 2016

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