Milling & Baking News - July 28, 2009 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JULY 28, 2009 / FEATURE Senate panel hears views on 'excessive speculation' in the wheat market On the horizon for health Producers of chia seed, ingredients with immune benefits seek broader appeal Story on Page 19 LATE NEWS Wheaties Fuel to target men MINNEAPOLIS - General Mills, Inc., which earlier this month said its Wheaties brand will undergo an "evolution" later this fall, on July 23 said that evolution will include the launch of a new product, Wheaties Fuel. According to the company, the ready-to-eat cereal will be different from original Wheaties and will be geared specifically to men, believed to be a first for the cereal category. A panel of elite athletes, including Peyton Manning, quarterback for the Indianapolis Colts; Kevin Garnett, power forward for the Boston Celtics; and Albert Pujols, first baseman for the St. Louis Cardinals, narrowed Continued on Page 8 WASHINGTON - Gary Gensler, chair- report prepared by the subcommittee timan of the Commodity Futures Trading tled "Excessive Speculation in the Wheat Commission, and representatives of grain- Market." The report, which was issued based food industries, the CME Group in June, urged tight limits on index tradand the investment community testified er participation in the wheat market. July 21 before a Senate panel Mr. Gensler said the on "excessive speculation in C.F.T.C. would consider sethe wheat market," presentriously the committee's recing their views on what if any ommendation it limit the actions government should positions of index traders take to address the impact of to the standard speculative index traders on the Chicago limits for wheat futures, or wheat contract. 6,500 contracts. Mr. Gensler The hearing was conductalso indicated the C.F.T.C. ed by the permanent subwas reviewing the manner in committee on investigations which the agency previously of the Senate Committee Hayden Wands of Sara issued exemptions from poon Homeland Security and Lee Corp. testified on sition limits, which allowed Government Affairs. Sena- behalf of the American select index traders to greattors Carl Levin of Michigan Bakers Association. ly exceed the position limits and Tom Coburn of Oklahoapplying to other users of ma, the subcommittee's chairman and the Chicago wheat contract. ranking minority member, respectively, The C.F.T.C. itself will conduct hearofficiated. Witnesses were asked to ad- ings beginning July 28 that will examine dress findings contained in a 247-page Continued on Page 14 Whole wheat flour production still growing, albeit at a modest rate KANSAS CITY - Whole wheat flour production in 2008-09 totaled 16,517,400 cwts, up 435,700 cwts, or 2.6%, from a revised 16,101,400 cwts in 2007-08. It was the second consecutive year of sluggish growth following several years of breakneck expansion earlier in the decade. Whole wheat flour production was 15,348,400 cwts in 2006-07; 12,697,100 in 2005-06; and 9,859,000 in 2004-05. While the 2008-09 growth was off from earlier years, it still contrasted with an overall contraction in total flour production. Output was down just under 0.6%, or 2,553,000 cwts, in 2008 from 2007. Whole wheat flour production estimates were based on data gathered from 21 milling companies. Revisions from earlier years reflected the inclusion for the first time of whole wheat production of durum milling companies. Participating companies have collective daily flour milling capacity of 1,466,000 cwts, equating to 92% of total U.S. milling capacity, according to the 2009 Grain & Milling Annual published by Milling & Baking News. Production of whole wheat flour, excluding whole wheat semolina, was Continued on Page 27

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Milling & Baking News - July 28, 2009