Milling & Baking News - February 12, 2008 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS FEBRUARY 12, 2008 / NEWS Spring wheat prices launched skyward on supply outlook Snack cake makers take steps to keep calories in check. Story on Page 26 LATE NEWS Frito-Lay, Quaker profits improve PURCHASE, N.Y. - Double-digit growth in SunChips, multipack and dips combined with mid single-digit growth in Lay's and Doritos helped spur strong sales and profit at the Frito-Lay North America subsidiary of PepsiCo, Inc. during the full year and fourth quarter ended Dec. 29. F.L.N.A. had operating profit of $2,845 million in the fiscal year, up 9% from $2,615 million in the previous year. Sales of $11,586 million marked a 7% increase from sales of $10,844 million in the previous year. For the fourth quarter, operating profit totaled $811 million, up 13%, while sales rose 8% to $3,510 Continued on Page 8 cents per bu Making sweets count KANSAS CITY - Hard red spring Board of Trade were discussing followwheat futures prices and cash wheat ing suit. premiums in Minneapolis skyrocketed The extraordinary market moves have in recent weeks on mounting concerns prompted the baking industry to call for supply at least of quality wheat of that government intervention, including not class will be depleted before the 2008 To infinity and beyond crop begins to flow $16 into marketing chan$14 nels. The March fuMinneapolis futures, nearby ture in Minneapolis $12 surged above $15.50 $10 a bu in trading last week, and the May $8 future soared above $6 $14, levels never be$4 fore seen in wheat. On Feb. 5, the Min$2 neapolis Grain ExFeb. Feb. Feb. Feb. Feb. Feb. 2003 2004 2005 2006 2007 2008 change announced it would expand daily trading limits effective Feb. 12 to 40c only the early release from the Conserfrom the current 30c to accommodate vation Reserve Program of environmenthe phenomenal volatility. The Kansas tally sensitive acreage but also steps to City Board of Trade and the Chicago Continued on Page 31 Startling flour production gain capped by robust fourth quarter WASHINGTON - In what could be described as a "breakout year" for grain-based foods, U.S. flour production in 2007 increased to 417,574,000 cwts, up 17,714,000, or 4.4%, from 399,860,000 in 2006, according to preliminary estimates issued Feb. 8 by the U.S. Department of Commerce's Bureau of the Census. The increase was the largest for a single year since a gain of 20,680,000 cwts in 1983. Out- put in 2007 was the largest since the record 421,270,000 cwts in 2000 and was the fourth largest ever. Rate of grind in 2007 averaged 88.9% of sixday capacity, up from 87.1% in the prior year. Fourth-quarter flour output totaled 106,670,000 cwts, up 5.1% from 101,450,000 cwts in the fourth quarter of 2006. The 24-hour capacity at yearend (October-December, 2007) was 1,532,000 cwts, up 26,000 from 1,506,000 a year earlier. Semolina production in 2007 aggregated 32,576,000 cwts, a six-year high and up 2% from 31,948,000 in 2006. The flour data indicated that for the first time since 2000, per capita consumption in 2007 was higher than the year before and that the increase was at least 2 lbs. MBN

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Milling & Baking News - February 12, 2008