Milling & Baking News - April 8, 2008 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS APRIL 8, 2008 / Intended spring wheat, durum and soybean plantings top expectations NEWS AIB International 2008 A special report in Milling & Baking News LATE NEWS I.B.C. asks lenders for more money KANSAS CITY - Interstate Bakeries Corp. last week asked its lenders to increase the aggregate principal amount available under the DIP agreement to $250 million from $200 million as well as extend the maturity date of the agreement to Sept. 30. In exchange, I.B.C. said it would request proposals from interested buyers by April 21. In addition, I.B.C. agreed to deliver by June 30 a schedule of asset sales that the company believes will generate proceeds sufficient to reduce outstanding commitments under the DIP agreement to zero. The proposed amendment also would change the borrowing base formula Continued on Page 8 WASHINGTON - U.S. farmers, responding to record high prices, intend to plant more other spring wheat, durum and soybeans in 2008 than most analysts expected, but less corn, according to the March 31 Prospective Plantings report from the U.S. Department of Agriculture. Seedings of spring wheat other than durum were expected to be 14,333,000 acres, up 8% from 13,297,000 acres in 2007 but below the 14,899,000 acres planted in 2006, the U.S.D.A. said. This year 's seedings, if realized, would be 3% above the five-year average of 13,967,400 acres. Spring wheat seedings increased 250,000 acres each in North Dakota (up 4%) and South Dakota (up 18%) and 200,000 acres in Minnesota (up 12%), the U.S.D.A. said. Total spring wheat planting intentions in the three Pacific Northwest states of Washington, Oregon and Idaho were up 275,000 acres, or 26%, from a year ago. In one of the most anticipated reports of the year, so far, the U.S.D.A. said farmers intend to plant 74,793,000 acres of soybeans in 2008, up 18% from 63,631,000 acres in 2007 but still 1% below the record area of 75,522,000 acres in 2006. The number was above industry pre-report expectations that ranged from 70 million to 74.2 million acres and averaged 71.5 million. Soybean futures in Chicago closed down the 70c-a-bu daily limit and old crop Continued on Page 16 Klosterman elected A.B.A. chairman; Shiver and Reyna to vice-chairmen PHOENIX - At the 2008 annual meet- is president of Klosterman Baking ing of the American Bakers AssoCo., Cincinnati. ciation, Kenneth (Chip) KlosterMr. Klosterman and a slate of man Jr. was elected the organizaofficers were elected March 30 tion's chairman for the two years at the A.B.A. annual board of ending in March 2010. governors meeting at the AriMr. Klosterman, who has zona Biltmore hotel in Phoenix. been on the A.B.A. executive Elected first vice-chairman committee for six years and the Klosterman was Allen L. Shiver, presiboard for an additional four, dent and chief operating officer, Flowers Foods Specialty Group, Thomasville, Ga. The board of governors elected as second vice-chairman Reynaldo Reyna, president of Bimbo Bakeries USA, Fort Worth, Texas. Albert Lepage, chairman of Lepage Bakeries, Inc., Auburn, Maine, was elected Continued on Page 19

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Milling & Baking News - April 8, 2008