Food Business News - October 25, 2011 - 58

Ingredient Markets
Market commentary for one-week period ended October 21, 2011

Bakery Flour
Bookings of bakery ﬂour were limited last week. Prices advanced. Bakers earlier covered most of their ﬂour needs through December with some having extended contract balances to cover part of their January-March needs. It was estimated that ﬁrst-quarter 2012 ﬂour coverage was around 35%. Many bakers during the past few weeks covered the futures component of prospective ﬂour contracts for both the ﬁrst and second quarters of 2012. There even was some basis coverage for the ﬁrst quarter taken last week by bakers considering pricing that remained within their budgets, but escalating cash wheat premiums in Kansas City kept most other bread bakers on the sidelines with regard to booking basis. Cookie-cracker and specialty bakers also confronted a strengthening cash wheat market with soft wheat in ﬁrm hands during the fall harvest. Declining millfeed markets during the past few weeks discouraged bakers from covering the feed component of prospective ﬂour bookings. Flour grind last week was as strong across the country as it has been in some time. Mills in most regions ran at least six days with many at 6½ days and a few at a full seven days. Grind was expected to stay strong through mid-November. FBN

family ﬂour slowed slightly last week from recent brisk movement. Carlot list prices were unchanged. Orders in September were seasonally heavy, and manufacturers then wondered whether the pace would be sustained even with the fall baking season approaching. So far in October, orders slowed, although business was expected to pick up again once grocers work through the current inventory. No aggressive store shelf marketing of family ﬂour was indicated. It was thought because of the high wheat prices, promotions may be relatively constrained. It was expected promotions of two 5-lb bags for $5 may become commonplace in the next several weeks with occasional offers of two 5-lb bags for $4. FBN

Semolina
Bookings of semolina, granulars and durum ﬂour were light last week. Prices edged lower on a narrow downward adjustment to the cash durum price. The price of choice milling hard amber durum quoted as a delivered Chicago/beyond value was $14.70 a bu, down 10c from a week earlier, equated to a Minneapolis value of $14.40. Some quotes were higher and some were lower than this posting. The dearth in cash trading of durum made pegging price with any certainty problematic. Relative stability in durum prices at values at wide premiums to spring wheat encouraged continued substitution of spring wheat for durum in the manufacture of certain pasta products such as elbow

macaroni and soup pasta. Most pasta manufacturers earlier covered nearly all of their semolina needs through December, and January-March coverage remained around 30%. Mill grind at around 5½ days disappointed some durum millers. Durum prices were underpinned by the much smaller crop harvested this year. The U.S. Department of Agriculture’s most recent estimate of 2011 U.S. durum production was 52 million bus, down 51% from 106 million bus in 2010. The 2011 crop was the smallest since 45 million bus were harvested in the drought year 1988. The short U.S. crop was expected to draw more Canadian supply across the border. The U.S.D.A. forecast 2011-12 U.S. imports of durum at 45 million bus compared with 32 million bus in the previous year. According to the U.S. Wheat Associates harvest report, the U.S. crop’s average grade was No. 2 hard amber durum compared with No. 1 hard amber durum in 2010. Protein averaged 13.9% compared with 13.3% last year, and test weight averaged 59.3 lbs per bu compared with 60.2 lbs last year. At the same time, U.S. Wheat commented with falling number averaging 387 seconds versus 381 seconds, the U.S. 2011 durum crop was “sound.” FBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$26.00 $23.00 $20.00 $17.00 $14.00 $11.00 O J A Previous Year J Current Year

Family Flour
Sales of national and regional brands of

Bakery ﬂour
Bulk, f.o.b. car, $ per cwt — Change from — Year Oct. 21 Oct. 14 Oct. 7 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 19.10 19.00 12.50 5.80 21.40 21.30 24.30 21.30 21.65 21.15 21.05 22.15 15.60 17.10 21.50 24.30 27.30 19.10 24.65 23.95 24.30 1.05 1.05 — — 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.15 0.40 0.40 1.05 0.60 0.60 0.40 0.15 1.05 1.05 1.65 1.65 — — 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.40 0.95 0.95 1.65 0.45 0.45 0.95 0.40 1.65 1.65 17.20 17.10 12.50 5.80 18.90 18.80 21.80 18.80 19.15 18.65 18.55 14.40 15.85 17.35 19.60 20.85 23.85 19.35 16.90 20.05 19.85

No. 1 hard amber durum
Track, Minneapolis — Change from — Year $ per bu Oct. 21 Oct. 14 Oct. 7 ago Choice milling 13% 14.40 -.20 -.30 8.30 cents per bu Amber discount 10.00 — — 10.00 Durum discount 10@40 — — 10@40 Pufﬁng premium 0 — — 0

Spring standard, Minneapolis
Bulk, f.o.b. car, $ per cwt
$33.00 $29.00 $25.00

Semolina
Bulk, f.o.b. Minneapolis, $ per cwt — Change from — Oct. 21 Oct. 14 Oct. 7 Semolina 35.00 -.15 -.50 Granulars 34.80 -.15 -.50 Flour 34.70 -.15 -.50 First clear 17.85 — — Second clear 12.50 — — Semolina - N.Y. 37.70 -.15 -.50 Year ago 20.50 20.30 20.20 13.60 11.00 23.20

$21.00 $17.00 $13.00 O J A Previous Year J Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$22.00 $18.00 $14.00 $10.00 O J A Previous Year J Current Year

Nationally advertised family ﬂour
Dollars Oct. 21 Family patent, 2-25s papers 24.12 4-10s n.a. 8-5s 18.62 18-2s 20.64 Self-rising n.a. Year ago 22.50 18.25 18.40 21.76 +88c per bale

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October 25, 2011

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