Milling & Baking News - August 29, 2006 - 40

I N G R E D I E N T

Bakery Flour

W E E K

Bookings of bakery flour were limited last week. Price changes were irregular. A bounce in wheat futures
prices and firm to stronger cash wheat
premiums, particularly in Kansas City,
discouraged bread bakers from putting
on significant additional flour coverage
for October-December.
Bread bakers had booked flour aggressively in the previous few weeks during
the slide in wheat futures prices from July
highs. Minor additions to fourth-quarter
ownership last week resulted in flour coverage of about 60% of prospective OctoberDecember needs. In some areas, coverage
exceeded the average by a good margin.
Individual smaller baking companies that
tend to be flat-price flour bookers as opposed to component buyers extended contract balances into January-March.
Cookie-cracker and specialty bakers
mostly held to the sidelines last week.
But they already held more extensive
coverage of their flour needs than was
the case with bread bakers.
Millers and bakers both faced pressure
on margins from rising freight rates and
fuel surcharges. Further complicating
the current pricing environment was the
variability in the rail freight rate hikes.
Mills in the Southwest ran five to seven days last week, Upper Midwest units
5½ to 6½ and Central states 4½ to 5½.
Northeast units were at 5 to 6½ days and
the Southeast just more than five. California and Pacific Northwest mills ran
six to seven days. MBN

Bakery flour

Family Flour

Sales of national and regional
brands of family flour were brisk last
week. There were no changes in carlot
list prices.
Manufacturers ran packaging lines
full tilt to accommodate a wave of orders
aimed at building inventories for the fall
baking season. Additionally, with the
opening of schools across the nation,
grocers and other principal outlets ran
ads featuring flour and set up end-ofaisle and other displays aimed at drawing attention to flour and other baking
ingredients. There were no aggressive
promotions entailing wide price discounts indicated.
Most buyers of private label flour were
booked solidly through December, and
major chains earlier had covered their
prospective needs through March. MBN

Semolina

Bookings of semolina, granulars and
durum flour were limited last week.
Price changes were narrow.
With the price of choice milling hard
amber durum at Minneapolis holding at $5.45 a bu, semolina prices remained the highest since October 2004.
The stronger market reflected a sharp
reduction in durum production in the
U.S. this year compared with last. At
the same time, Canadian durum may
be imported duty-free, and this supply constrained upward price risk in
the view of many pasta manufacturers,
most of whom were content with exist-

ing coverage for the fourth quarter of
2006. Higher freight rates and fuel surcharges pressured margins for both durum mills and pasta manufacturers.
Semolina coverage through September
was solid. There were minor additions to
October-December coverage last week,
and isolated instances of booking into
January. There was no interest further
forward indicated. Most of the fourth
quarter coverage was in October.
The North Dakota durum crop was
54% harvested by Aug. 20, compared
with 23% as the recent five-year average for the date. Combining was 42%
completed in the state's northwest and
35% in the north central region. North
Dakota durum condition at last week's
outset was rated 18% good to excellent,
49% fair and 33% poor to very poor.
Saskatchewan durum was 17% combined by Aug. 20, compared with 3%
as average for the date.
North Dakota State University indicated on the basis of 22 of 121 samples
expected, northern Plains durum had
average protein of 15.7% and average
test weight of 58.9 lbs per bu. Test weight
was running lower than in recent years,
and the early harvest indicated some
lighter thousand kernel weights. Average falling number was 405 seconds. MBN

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

No. 1 hard amber durum

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

Track, Minneapolis
- Change from - Year
- Change from - Year $ per bu
Aug. 25 Aug. 18 Aug. 11 ago
Aug. 25 Aug. 18 Aug. 11 ago Choice milling 13% 5.45
-
+.10
4.70
Kansas City
cents per bu
Bakers short patent
13.15
0.35
0.35 11.65 Amber discount
10
-
-
10
Bakers standard patent 13.05
0.35
0.35 11.55 Durum discount
10@40
-
- 10@40
Second clear
6.20
-
-
6.50 Puffing premium
0
-
-
0
Third clear
5.00
-
-
5.50
Semolina
Minneapolis
Spring short patent
12.15
-0.10
-0.20 12.80 Bulk, f.o.b. Minneapolis, $ per cwt
- Change from - Year
Spring standard patent 12.05
-0.10
-0.20 12.70
Aug. 25 Aug. 18 Aug. 11
ago
High gluten
15.05
-0.10
-0.20 15.70
14.40
-.05
+.20
12.55
Whole wheat
12.05
-0.10
-0.20 12.70 Semolina
14.20
-.05
+.20
12.35
Specialty whole wheat 12.40
-0.10
-0.20 13.05 Granulars
14.10
-.05
+.20
12.25
Fancy spring clear
11.90
-0.10
-0.20 12.55 Flour
11.20
-.05
+.20
9.50
First spring clear
11.80
-0.10
-0.20 12.45 First clear
7.30
-
-
6.50
Rye, white
10.20
-
-0.05
9.70 Second clear
Semolina - N.Y. 16.70
-.05
+.20
14.85
Chicago
Cracker
9.90
0.75
0.55 10.20
Nationally advertised family flour
Fancy cake
11.40
0.75
0.55 11.70
Dollars
New York
Aug. 25
Year ago
Winter/spring blend
15.55
0.35
0.35 14.05
Family patent, 2-25s papers 15.36
15.36
Spring standard patent 14.80
-0.10
-0.20 15.65
4-10s
13.00
13.00
High gluten
17.80
-0.10
-0.20 18.65
8-5s
13.36
13.36
Fancy cake
13.40
0.75
0.55 13.70
18-2s
15.66
15.66
Rye, white
12.70
-
-0.05 12.20
Self-rising
+80c per bale +56c per bale
Los Angeles
Bakers standard patent 15.65
0.60
0.65 12.30
Pastry
13.55
-0.10
0.05 12.15

40 / Milling & Baking News, August 29, 2006

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

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

bakingbusiness.com/world-grain.com

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

Milling & Baking News - August 29, 2006

Table of Contents for the Digital Edition of Milling & Baking News - August 29, 2006