Milling & Baking News - January 20, 2004 - 38

I N G R E D I E N T

W E E K

million acres, up slightly from a year ago.
DURUM. The price of choice milling
hard amber durum at Minneapolis held
at $5.10 a bu. The durum market has been
stable for several weeks. And indications
were that that stability would likely continue for the next several weeks. Supplies
of good quality domestic durum were
ample. And mill grind was only about
four to five days.
Farmer selling of durum was limited.
The U.S.D.A. estimated Dec. 1 durum
stocks at 66,969,000 bus, down 13% from
the December inventory a year earlier.
The quality of stocks, though, was much
improved from 2002-03. MBN

Millfeed
Prices for spot and January delivery
were sharply higher in the Midwest and
Southwest last week, while most other
markets showed modest strength.
Prices were driven higher by demand
and events in the Southwest, although
reduced mill run times contributed to
tight supplies and strength nationwide.
In Kansas City, millfeed spot bids on
Jan. 15 were historically high at $100 a
ton, and millfeed traded at $105 for spot
delivery. Kansas City gained $12 since the
first of the year and was $31 above yearago levels. While Southwest demand has
been stronger than expected and mill
grind times have been lighter than expected, mill sources said the gain was at
least partly the result of resellers making
up for undelivered sales to one major

feed mixer who demanded the product.
Before the week was over, the Southwest was pulling prices in other Midwest
markets higher as they shipped into the
region. Most other parts of the country,
meanwhile, saw strong, but certainly not
runaway, prices last week.
The week began with millfeed $1 to $3
higher and light trading as the industry
adopted an extremely bullish attitude after the U.S.D.A. lowered 2003 corn and
soybean production numbers and issued
a surprisingly low 2004 winter wheat
seeding estimate last Monday.
The strength continued Tuesday as
mill sources said they still were not
grinding at pre-holiday levels, while feed
demand was stronger than expected.
Some noted that a bout of cold weather in
many parts of the nation also boosted
feed demand. Trading was fairly active in
the Southwest and Central states.
By Wednesday, other Midwest markets began to move higher with Kansas
City, and it became evident there was
more to the surge than demand. At the
same time, mills were reducing grind
time rather than increasing to pre-holiday levels because flour demand was
lacking. Talk of mixers substituting other
grains and by-products surfaced.
By the end of the week, market activity
grew quiet, and price gains slowed.
On the West Coast, California markets
were mostly steady to strong, with very
tight millfeed supply. Some mills held out
for higher prices. Substitution in feed formulas was occurring. The Pacific North-

Bulk Middlings

30-day shipment, Kansas City, $ per ton

30-day shipment, Chicago West, $ per ton

Bulk Middlings

Nationally Advertised Family Flour

Jan. 16

Dollars

close, $ per ton, for following shipping periods
January Feb.-March April-June
July-Sep.
Kansas City
96 @ 101 85 @ 88 69 @ 73
68 @ 72
Chicago West
92 @ 97 82 @ 89 73 @ 80
72 @ 79
Buffalo
73 @ 79 69 @ 74 62 @ 68
55 @ 60
South. California 94 @ 100 92 @ 96 78 @ 82
78 @ 82
North. California 94 @ 100 92 @ 96 78 @ 82
78 @ 82
Pacific Northwest 90 @ 95 87 @ 92 80 @ 85
80 @ 85
California and Pacific Northwest prices, delivered rail

38 / Milling & Baking News, January 20, 2004

8-5s

Jan. 16
12.16

Year ago
12.16

Semolina
f.o.b. Minneapolis, $ per cwt
Week's
Year
Jan. 16
change
ago
13.05 @ 13.15 -.05
14.90@ 15.00

west was little changed for the week, as
operations returned somewhat to normal
after the previous week's snow.
Wheat germ prices were steady at $290
to $300 a ton in a continued quiet market.
Bulk middlings at $100 a ton in Kansas
City and $76 in Minneapolis compared
with yellow corn at $94.27 K.C., and sorghum at $94.19. Corn gluten feed was $1
lower at $90 a ton. Dehydrated alfalfa
was steady at $119 a ton. MBN

Semolina
Bookings of semolina, granulars and
durum flour were extremely light last
week. Price changes were narrow.
The price of choice milling hard amber
durum last week held at $5.10 a bu last
week. The cash durum market has been
remarkably stable for months. And there
was nothing to suggest anything but continued stability in the next several weeks.
This market calm has enabled pasta makers to book needs at their own pace. Basically all of the trade was booked at least
through March, and several pasta makers
had some coverage into April-May.
Some durum millers directed pasta
makers' attention at the strong millfeed
market and suggested this was a good
time to book semolina needs for the summer. But pasta makers were reluctant to
become more assertive buyers. MBN

Family Flour
Sales of national and regional brands
of family flour were seasonally sluggish
last week. There were no changes in carlot list prices.
Results of the key home baking season
were being tallied. Most manufacturers
expected the data to show at least a minor
reduction in sales from a year ago. Some
private label manufacturers pointed to
the ongoing labor dispute involving West
coast grocery chains as a factor in their
disappointing volume in that region.
Some regional brands indicated their
sales were slightly improved from a year
ago. One suggested that its favorable results during the baking season could be
tied to less active promotion of product
by the national brands.
Sales last week were routine. Private
label manufacturers were working with
customers on contacts that would extend
through June or July. MBN

Bakery Shortening
Bookings of bakery shortening very
light last week. Most prices were higher.
Soybean oil futures prices advanced
strongly, setting new contact highs in reaction bullish supply/demand data issued by the U.S. Department of Agriculture at the beginning of the week. The
U.S.D.A. lowered its estimate of 2003 soybakingbusiness.com / world-grain.com

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

Milling & Baking News - January 20, 2004

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