Food Business News - July 31, 2012 - 55

Market commentary for one-week period ended July 27, 2012

Bakery Flour
Bookings of bakery ﬂour expanded last week. Prices tumbled. Wheat futures price changes were erratic with prices plunging early in the week, bouncing at midweek but ﬁnishing the week lower. While the drought deepened, traders considered whether recent rallies in agricultural futures were overdone, at least given current conditions. Markets remained volatile and mostly weather driven. But it seemed most of the wheat crop will escape serious damage from the drought. The winter wheat harvest was successfully concluded except in Montana, and the spring wheat harvest was well under way. Bakers, including some major baking companies, responded to the market’s break from nosebleed levels by adding to their coverage through September and taking additional ownership of their fourth-quarter needs. Increased interest in booking was evident in all ﬂour grades. In the case of pan bread ﬂour, thirdquarter coverage was estimated at about 80% of the potential, although some millers suggested ﬂour coverage might be a bit lower. Fourth-quarter coverage was estimated at 35% to 40%. Surging millfeed prices, which were given a huge boost in recent weeks by a soaring corn futures market, attracted baker interest with several booking the feed component of prospective fourthquarter ﬂour bookings. This activity was evident across the country and affected the markets of all ﬂour grades.

A weak cash spring wheat basis encouraged some spring grade flour users to book that component into the fourth quarter. The hard winter wheat basis in Kansas City steadied after recent wide losses. Rye ﬂour prices advanced with the cash rye market moving up to around $8.70 a bu compared with $8.50 earlier. Flour grind across the country held about steady last week, ranging mostly from ﬁve to six days with some mills running a full seven days. Intermittent downtime was noted at speciﬁc mills in the Northeast and Central states. FBN

Familynational and regional brands Flour Sales of
of family ﬂour were seasonally sluggish. Carlot list prices were unchanged. In recent weeks, manufacturers of private label ﬂour concluded product promotion agreements with principal outlets, including grocers and club stores. In many instances, the agreements reﬂected wheat prices much lower than those currently prevailing, which may crimp manufacturers’ margins. Initial indications were that product promotions for the fall baking season will be similar to last year, when family ﬂour often was offered at two 5-lb bags for $4 on the grocers’ shelves. Mills were expected to expand prepackaging operations for the baking season in the next few weeks. FBN

durum ﬂour were limited last week. Prices advanced. The price of choice milling hard amber durum quoted as a delivered Chicago/ beyond value was $11 a bu, up 50c from a week earlier. The cash durum market responded to recent strength in the other wheat markets, particularly spring wheat. The Minneapolis cash durum price was at $10.70 a bu. Pasta manufacturers continued to fill gaps in August-September coverage. Coverage for the third quarter was estimated at about 90%. Fourth-quarter coverage was about 60%. Coverage beyond December remained lean. Durum mill grind was strong at about 6½ days. Grind typically picks up during the last half of July and in August. The North Dakota durum harvest was 3% completed by July 22. Because of the early start date of the harvest, there were no year-ago or five-year comparisons. North Dakota durum was rated 59% good to excellent (29% fair) compared with 66% a week earlier. Montana durum was 26% turning color compared with zero per cent as the average for the date. Montana’s durum was rated 60% good to excellent compared with 76% a week earlier. FBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$26.00 $23.00 $20.00

Semolina Bookings of semolina,
No. 1 hard amber durum

granulars and

$17.00 $14.00 $11.00 J O J
Previous Year

Bakery ﬂour
Bulk, f.o.b. car, $ per cwt — Change from — Year July 27 July 20 July 13 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 20.15 20.05 14.00 … 19.95 19.85 22.85 19.85 20.20 19.70 19.60 18.70 18.60 20.10 22.55 22.95 25.95 22.10 21.20 26.05 24.70 -1.50 -0.70 -1.50 -0.70 — — ... ... -2.55 -2.55 -2.55 -2.55 -2.55 -2.55 -2.55 -0.60 -2.00 -2.00 -1.50 -2.50 -2.50 -2.00 -0.60 -1.50 -1.05 -1.25 -1.25 -1.25 -1.25 -1.25 -1.25 -1.25 -1.35 -0.50 -0.50 -0.70 -1.45 -1.45 -0.50 -1.35 1.95 0.10 18.60 18.50 12.50 5.80 21.70 21.60 24.60 21.60 21.95 21.45 21.35 21.55 15.65 17.15 21.00 24.50 27.50 19.15 24.05 24.80 24.10

Track, Minneapolis — Change from — Year $ per bu July 27 July 20 July 13 ago Choice milling 13% 10.70 +.50 +.75 15.45 cents per bu Amber discount 10.00 — — 10.00 Durum discount 10@40 — — 10@40 Pufﬁng premium 0 — — 0

A
Current Year

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 — July 27 July 20 July 13 Semolina 23.95 +.45 +.60 Granulars 23.75 +.45 +.60 Flour 23.65 +.45 +.60 First clear 17.50 — — Second clear 13.00 — — Semolina - N.Y. 26.65 +.45 +.60 Year ago 37.25 37.05 36.95 17.85 12.50 39.95

$21.00 $17.00 $13.00 J O J
Previous Year

A
Current Year

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

Nationally advertised family ﬂour
Dollars July 27 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 24.12 n.a. 18.62 20.64 n.a.

$18.00 $14.00 $10.00 J O J
Previous Year

A
Current Year

July 31, 2012

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Food Business News - July 31, 2012

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