Milling & Baking News - January 12, 2010 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JANUARY 12, 2010 / FEATURE Stock Market Review Grain-based foods shares rise broadly, impressively in 2009 Bringing the heat Private label pushing branded hot cereal makers like never before Story on Page 34 LATE NEWS Dana Peterson named c.e.o. of NAWG WASHINGTON - Dana Peterson, a longtime member of the Kansas Wheat staff, has been named chief executive officer of the National Association of Wheat Growers, effective Jan. 20. "We are absolutely delighted to be bringing one of our dynamic state staffers to the national office," said Karl Scronce, president and acting c.e.o. at NAWG. "Dana is great to work with and showed confidence and poise throughout the interview process. She has ideas and enthusiasm that we need in Washington to help NAWG grow and the wheat industry thrive in a very competitive policy and production Continued on Page 8 NEW YORK - Shares of grain-based foods companies were up sharply last year, partly recovering from severe losses sustained in 2008. The Grain-Based Foods Share Index, calculated by Milling & Baking News, ended the year at 10,350.06, up 13%. Even with the double-digit gain, the index was still beneath the year-end closes of 2007 (11657.58), 2006 (11542.79) and 2004 (10852.64). The 10,350.06 close was 14% beneath the all-time high for the index (12018.59), reached in July 2007. While lagging broader market index performances, the grain-based share gain wasn't far behind the 19% jump in the Dow Jones average of industrial shares. The Standard & Poor's 500-stock index was up 24% for the year; the Nasdaq composite index was up 44% and the Russell 2000 was up 25%. When combined with the performance in 2008, the Grain-Based Foods Index outperformed the broader market measures. For the two-years ended Dec. 31, the grain-based index was down 10%, versus a 21% decline in the Dow industrials, a 24% drop in the S.&P. 500 and a 14% decline in the Nasdaq index. Drilling deeper into the S.&P. 500, the Grain-Based Share Index 2009 Continued on Page 18 Cash spring wheat basis now quoted as delivered Chicago value MINNEAPOLIS - Beginning Jan. 4, the cash spring wheat basis provided daily by the Minneapolis office of the U.S. Department of Agriculture's Agricultural Marketing Service was quoted as a delivered Chicago/beyond value. Previously, the cash spring wheat basis was quoted as the Minneapolis value of wheat traversing that gateway to destinations beyond. The new cash spring wheat basis still was determined in relation to Minneapolis wheat futures. The Minneapolis Grain Exchange (MGEX), which is host to the onsite A.M.S. office posting the cash spring wheat basis, in a Dec. 24 announcement, stated: "Due to changes in rate structures by a Class I rail carrier, effective Jan. 4, 2010, daily cash wheat and durum basis will be quoted as a delivered Chicago value. Applicable freight differentials to Minneapolis/ St. Paul and Duluth/Superior delivery points will also be provided. Prices will continue to reflect values of rail cars offered and traded in the exchange room of the Minneapolis Grain Exchange for spot or immediate shipment." The Class I carrier involved was the Burlington Northern-Santa Fe, which Continued on Page 10

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Milling & Baking News - January 12, 2010