Milling & Baking News - September 21, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods / SEPTEMBER 21, 2004 N E W S F E AT U R E Views differ on direction of wheat futures prices, cash markets to roar S pring wheat harvest delays across the U.S. northern Plains and the Canadian Prairie provinces, an ebbing in the flow of U.S. wheat exports after a strong start to the current marketing year and the prospect of a record-large corn harvest this fall recently have vied for influence over the direction of wheat prices. How analysts have weighed these various market features has differed to a considerable degree. And this has produced distinct outlooks for wheat futures LATE price moves during the next several weeks. A re-test of contract lows (set in midAugust) in Chicago and Kansas City was thought likely by Paul Meyers, vice-president, commodity analysis, Connell Co., Berkley Heights, N.J. Mr. Meyers based his projection on expected pressure from the harvest of a record 11-billion-bu corn crop and still large soybean crop as well as on an expected slowing in the pace of U.S. wheat export business as exportable supplies increase in competing NEWS C.P.I. up 1.3% from August '03 WASHINGTON - The Consumer Price Index for baked foods and cereal products in August increased 1.3% from the same year-ago month, but was flat in comparison with July 2004, according to the Bureau of Labor Statistics of the U.S. Department of Labor. The August index for Cereals and Continued on Page 8 Prudential Back-to-School meeting highlights innovation, performance BOSTON - DiGiorno pizza, Special K breakfast cereal and Uncrustables sandwiches were among products highlighted in presentations at the Prudential Equity Group, Inc.'s 13th Annual Back-to-School Consumer Conference held Sept. 8-9 at the Boston Marriott Long Wharf hotel. At the annual gathering, which brings together many of the nation's largest consumer products companies in a two-day forum, several grain-based foods companies reviewed plans for product innova- tion heading into the fall baking season. Kraft in new microwave introduction The microwave is back at Northfield, Ill.-based Kraft Foods, Inc. At the conference, Roger K. Deromedi, Kraft chief executive officer, described a new Kraft frozen pizza made for cooking in microwave ovens. Together with DiGiorno Thin Crispy Crust, the new product drew enthusiastic Continued on Page 11 inside nations. Mr. Meyers suggested that wheat futures prices, especially those in Chicago and Kansas City, would trade lower during the corn harvest and then sideways through much of the winter. Steve Freed, vice-president, ADM Investors Services, Inc., Chicago, said he thought a re-test of lows in Chicago and Kansas City Continued on Page 21 Hurricane Ivan brings industry to standstill along U.S. Gulf coast NEW ORLEANS - A short response from a receptionist at Sara Lee Bakery Group's plant in Mobile, Ala., summed up the state of the grain-based foods industry last week along the central U.S. Gulf coast. "The operations manager isn't here," the receptionist said, replying to an inquiry about the plant's preparations for Hurricane Ivan, including plans to board up the facility. "He's over at Lowe's (Home Improvement Warehouse)." As Ivan bore down on a broad section of the region, its grain-based foods businesses - from grain export elevators to processing plants and bakeries - spent the first half of the week preparing for the storm. They spent the last half of the week enduring it. Ivan's fury began affecting a large swath of the coast, from New Orleans to Continued on Page 9 THIS WEEK Ingredient Poore Brothers to use Cinnabon brand name Biscuits unit finishes '04 strong at Campbell Fleming settles fraud charges with S.E.C. Week 10 15 30 31

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Milling & Baking News - September 21, 2004