Milling & Baking News - January 15, 2008 - 34

Ingredient Week

Bakery Flour

Bookings of bakery flour expanded
last week. Spot prices dropped.
Price declines in wheat futures generated a flurry of bookings aimed at filling
gaps in February-March coverage. The
fill-in business was evident in all grades
of flour. By the week's end, JanuaryMarch coverage in pan bread flour was
estimated at 60% to 65%. While there
remained reluctance to commit to bookings beyond March, individual specialty
bread bakers were said to have extended
contract balances of spring grades into
the second quarter of 2008.
With booking flour at center stage,
there was less emphasis on booking individual components. At the same time,
some cookie-cracker and specialty bakers were said to be weighing locking in
the basis for April-June. April-June millfeed was quoted at wide discounts to the
nearby. Millers suggested millfeed prices
for that period could rise as the market
reflects the competition between corn
and soybeans for 2008 acres.
Flour grind increased last week. Southwest and Upper Midwest mills ran five to
5½ days. Central states ranged from 5½
to six days, Northeast four to six and the
Southeast barely five. Mills in California
averaged six days, and in the Pacific Northwest mills averaged just under six. MBN

Family Flour

Sales of national and regional brands
of family flour were seasonally sluggish last week. Carlot list prices were

Bakery flour

unchanged though ideas were upward
adjustments were likely in view of the
sustained period of high wheat prices.
Individual regional manufacturers in
recent weeks raised their list prices,
not waiting for a lead from the national
brands. The national brands eyed one
another but continued to hold back
weighing the relative importance of
market share compared with margins.
For the family flour category, December was seen as a strong month.
December unit volume was 1% below
a year ago, which was favorable in a
market that typically sees year-to-year
declines on the order of 3% or so. Dollar sales were up 15% from a year ago
for the month, reflecting the impact of
recent price hikes and less aggressive
product promotions during the fall baking season.
Private label manufacturers indicated
an expansion in contracting for the remainder of the crop year or even through
July in the wake of last week's downward trend in wheat futures prices.
Packaging lines operated on average
four days, and lead times for filling orders
was estimated at about seven days. MBN

Semolina

Bookings of semolina, granulars and
durum flour were limited last week.
Prices advanced and finished the week
above $50 a cwt, a level never before
reached.
The price of choice milling hard amber durum in Minneapolis jumped 50c

a bu to a record $20.25. Some quotes
were 50c a bu higher, with the lack of
trading making pegging prices difficult. A carry in the market made forward pricing even more expensive.
The Canadian Wheat Board offered
spot milling durum held in storage at
Thunder Bay, Ont., at the equivalent of
$22.15 a bu, up $1.15 from a week earlier. The only Canadian durum moving
to the U.S. was supply contracted several months ago.
No significant price relief was in sight
through the remainder of the crop year
with supplies historically tight. In the
case of durum, the 2007 crop won't flow
into marketing channels in significant
volume until August.
The U.S. Department of Agriculture
on Jan. 11 projected the carryover of durum on June 1, 2008, at 19 million bus,
up 5 million from December but 3 million below the previous year.
Pasta manufacturers earlier covered
most of their prospective requirements
through March. Several held back in recent weeks hoping for a break in prices
in the event producers sold crop at the
turn of the year. This seemed not to have
taken place, at least to the extent that
would have pressured prices.
Durum mill grind was five days. 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
Jan. 11 Jan. 4 Dec. 28 ago
Jan. 11 Jan. 4
Dec. 28 ago Choice milling 13% 20.25
+0.50
+0.50 6.20
Kansas City
cents per bu
Bakers short patent
23.40
-0.15
0.75 12.85 Amber discount
10
-
-
10
Bakers standard patent 23.30
-0.15
0.75 12.75 Durum discount
10@40
-
- 10@40
Second clear
12.00
-
-
7.00 Puffing premium
0
-
-
0
Third clear
5.80
-
-
5.80
Semolina
Minneapolis
Spring short patent
25.95
-0.20
1.20 12.90 Bulk, f.o.b. Minneapolis, $ per cwt
- Change from - Year
Spring standard patent 25.85
-0.20
1.20 12.80
Jan. 11
Jan. 4 Dec. 28
ago
High gluten
26.85
-0.20
1.20 15.80
50.15
+1.20
+1.30
15.65
Whole wheat
25.85
-0.20
1.20 12.80 Semolina
49.95
+1.20
+1.30
15.45
Specialty whole wheat 26.20
-0.20
1.20 13.15 Granulars
49.85
+1.20
+1.30
15.35
Fancy spring clear
25.70
-0.20
1.20 12.65 Flour
37.60
+.90
+.95
12.10
First spring clear
25.60
-0.20
1.20 12.55 First clear
-
-
7.30
Rye, white
17.75
-0.05
0.05
8.95 Second clear 10.25
Semolina - N.Y. 52.55
+1.20
+1.30
17.95
Chicago
Cracker
21.70
-0.55
0.95 12.05
Nationally advertised family flour
Fancy cake
23.20
-0.55
0.95 13.55
Dollars
New York
Jan. 11
Year ago
Winter/spring blend
25.80
-0.15
0.75 15.25
Family patent, 2-25s papers 16.05
15.36
Spring standard patent 28.00
-0.10
1.30 15.15
4-10s
13.78
13.00
High gluten
29.00
-0.10
1.30 18.15
8-5s
13.96
13.36
Fancy cake
25.20
-0.55
0.95 15.55
18-2s
15.66
15.66
Rye, white
20.25
-0.05
0.05 11.45
Self-rising
+88c per bale +88c per bale
Los Angeles
Bakers standard patent 26.30
-0.15
0.10 15.00
Pastry
33.75
-0.15
0.55 15.15
34 / January 15, 2008

Milling & Baking News

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 http://www.world-grain.com

Milling & Baking News - January 15, 2008

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