Milling & Baking News - October 19, 2010 - 4

Contents 

October 19, 2010 Vol. 89, No. 17

 NEWS FEATURE

 NEWS Comment

Story on Page 1

Grain-based foods
at center of severe
price storm

Higher fuel prices,
larger crops boost grain
transportation costs

10

Corn Refiners Association casts
doubt on HFCS-free sales

The Corn Refiners Association presents sales
charts on five products that show switching
away from high-fructose corn syrup fails to
increase market share.

International focus, other
changes pay off in Expo
results
Story on Page 29

Editorial
Business
Financial Results
Data
Washington
Regulatory Affairs
Industry Activities
People
Supplier Innovations
Ingredient Week Trends
Archive

'Significant turnaround' has
MGPI poised for growth

Posting fiscal 2010 net income of $8.7 million
has MGP Ingredients resting on stronger
financial footing. The company will focus on
commercialization and R.&D.

12

DEPARTMENTS
7
9
12
15
21
26
28
30
32
33
46

11

Monsanto net income
falls 47% in fiscal 2010

Competition in the herbicide category cuts into
demand for Roundup products as Monsanto
Co. posts fiscal-year income of $1.1 billion,
down from $2.1 billion.

14

Cargill profits surge behind
heightened volatility

Cargill first-quarter income rises 68% to $883
million. Commodity trading and processing
segments experience resurgence in volatility
across agricultural commodity markets.

15

U.S.D.A. lowers corn, soybean
carryover forecasts

The U.S. Department of Agriculture projects
the corn carryover on Sept. 1, 2011, at 902
million bus, down 19% from the September
forecast, and soybean carryover at 265 million
bus, down 24%.

COMPANIES IN THIS ISSUE

The powerfully bullish impact from the
crop reductions in last week's estimates
from the U.S. Department of Agriculture
gained strength from the expanding
belief that central banks are intent on
bolstering the economy by releasing
inflation pressures. No one said this better
than Dr. Janet L. Yellen, vice-chairman
of the Federal Reserve Board. She said,
"It is conceivable that accommodative
monetary policy could provide tinder
for a buildup of leverage and excessive
risk-taking." When combined with worry
about the impact of quantitative easing
by increased buying of government debt,
the outcome is nearly explosive.
Grain-based foods finds itself at
the center of this volatile situation. If
these difficulties mean anything for the
industry that has experienced similar
predicaments in the past, it forces caution
about entering into forward transactions.
Limit swings in futures prices, particularly
of corn, made entering into flour bookings
and millfeed transactions extraordinarily
difficult for both millers and bakers.
The advances in consumer prices
that are sure to follow market moves
like those of recent weeks have not yet
been felt. Coming only a few weeks
before a critical election, the possibility
of these necessary moves becoming
tangled in a hard-fought campaign is
a fearful prospect. Regardless of any
collision in the midst of a fierce debate
centered on the economy, grain-based
foods companies require great care in
navigating such massive challenges. MBN

Bunge Ltd............................ 10, 32

Freund Baking Co. ..................... 31

The Long Co. ............................. 29

Sunwin ...................................... 32

B.N.S.F. Railway ......................... 24

Gavilon Grain, L.L.C. ................... 9

MGP Ingredients, Inc. ................ 11

Sweet Green Fields.................... 32

Caravan Ingredients .................. 32

GLG Life Tech Corp. ................... 32

Minto Grain, L.L.C. ...................... 9

SweetLeaf Sweeteners .............. 32

Cargill ................................. 14, 32

Granular .................................... 32

Monsanto Co............................. 12

Trausch Baking Co. .................... 30

CHS, Inc. .................................... 31

Heileman Baking Co. ................. 30

Morita Kagaku Kogyo ............... 32

Verdure Sciences Europe ........... 32

Corn Products International ...... 32

Hostess Brands, Inc. .............. 9, 10

Newsmith.................................... 9

Whole Earth Sweetener Co........ 32

Cosi, Inc....................................... 8

ICL Performance Products ......... 32

PepsiCo, Inc. .............................. 14

Dunkin' Brands, Inc. .................. 30

LeMatic ....................................... 9

PureCircle Ltd. ........................... 32

4 / October 19, 2010 Milling & Baking News

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Milling & Baking News - October 19, 2010

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