Milling & Baking News - November 30, 2010 - 41

Ingredient Week 

Bakery Flour
Bookings of bakery were limited last
week. Prices advanced. A surge in spring
grade prices was tied to a spike in cash
wheat premiums on 14%-protein wheat
in connection with a trade of a line of
spot cars with exceptional quality. It was
uncertain whether the sharply higher
basis would hold.
Bakers faced no pressing needs to fill
before leaving offices for Thanksgiving,
especially in view of the heavy bookings
completed during the previous couple of
weeks. Buyers watched as wheat futures
prices traded sideways to higher with the
intent of deciding their next moves with
regard to completing booking their flour
needs for the first quarter of 2011 after the
holiday. Bread flour coverage for January-March was at least 50% taken by the
week's end with some millers suggesting
coverage was even higher with some major baking companies having completed
coverage for the period while weighing
how to approach April-June.
Cookie-cracker and specialty bakers
continued to hold more extensive flour
coverage than the bread bakers.
Bakers considered advice suggesting
flour prices may be firm or even higher in
the weeks ahead and now may be the best
time to extend coverage through the first
quarter and even into April-May. Market
analysts suggested March-April-May will
be a critical period for determining price
direction for the coming year and it may
be wise to take at least partial coverage of
flour needs for that volatile timeframe.

Bakery flour

Individual bakers booked hard winter wheat basis for the second quarter of
2011. Hedging prospective flour bookings
for the first half of 2011 was indicated, but
this activity was not as heavy as during
the previous couple of weeks. There was
little interest in covering millfeed.
Flour grind was heavier than usual for
Thanksgiving week at four to 4½ days
in the Southwest, four to five days in
the Upper Midwest, Central states and
California, four days in the Northeast
and Pacific Northwest and three to four
days in the Southeast. MBN

Family Flour
Sales of national and regional brands
of family flour slowed. Carlot list prices
were unchanged.
Shipments slowed with the approach
of Thanksgiving, although there were
exceptions with individual grocers or
grocery chains finding they needed additional supply just ahead of the holiday.
Shipments were expected to regain momentum after Thanksgiving, but after
shipments are completed for the winter
holidays, sales should drop off sharply
as typically is the case.
Flour promotions were evident across
the nation, but none seemed overly aggressive with individual regional manufacturers having adopted less aggressive
trade activation initiatives in view of
historically high wheat prices. National
brands often increase market share during the winter compared with private
label products. Gold Medal, White Lilly,

Martha White and Pillsbury brands of
flour were offered at around $1.50 per
5-lb bag across many markets in the
Southeast and other areas.
Most buyers of private label flour had
coverage through March. MBN

Semolina
Bookings of semolina, granulars and
durum flour were limited last week.
Price changes were narrow.
Market activity was mostly subdued
during the holiday-shortened week.
Pasta manufacturers were comfortable
with coverage in January-March that
was estimated to account for around
65% to 70% of their needs. Secondquarter coverage remained negligible.
Pasta makers inquired about April-June
pricing but weren't willing to pay the
premium to nearby values such coverage entailed.
The price of choice milling hard amber durum quoted as a delivered Chicago/beyond value remained $9.30 a bu,
which equated to a Minneapolis price of
$9 a bu. Some millers suggested a higher
price, but trading in the spot cash durum
market remained light. The Canadian
Wheat Board offered milling durum
held in storage in Thunder Bay, Ont., at
the equivalent of $9.40 a bu. MBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt

No. 1 hard amber durum

Bulk, f.o.b. car, $ per cwt

Track, Minneapolis
- Change from - Year
- Change from - Year $ per bu
Nov. 26 Nov. 19 Nov. 12 ago
Nov. 26 Nov. 19 Nov. 12 ago Choice milling 13% 9
-
+.10
5.90
Kansas City
cents per bu
Bakers short patent
17.30
0.80
0.55 14.85 Amber discount
10
-
-
10
Bakers standard patent 17.20
0.80
0.55 14.75 Durum discount
10@40
-
- 10@40
Second clear
12.50
-
- 12.50 Puffing premium
0
-
-
0
Third clear
5.80
-
-
5.80
Semolina
Minneapolis
Spring short patent
20.10
2.80
1.10 17.00 Bulk, f.o.b. Minneapolis, $ per cwt
- Change from - Year
Spring standard patent 20.00
2.80
1.10 16.90
Nov. 26 Nov. 19 Nov. 12
ago
High gluten
23.00
2.80
1.10 19.90
21.70
+.05
-.05
14.60
Whole wheat
20.00
2.80
1.10 16.90 Semolina
21.50
+.05
-.05
14.40
Specialty whole wheat 20.35
2.80
1.10 17.25 Granulars
21.40
+.05
-.05
14.30
Fancy spring clear
19.80
2.75
1.05 16.75 Flour
13.60
-
-
13.05
First spring clear
19.75
2.80
1.10 16.65 First clear
-
-
11.00
Rye, white
13.60
0.05
-0.45 14.85 Second clear 11.00
Semolina - N.Y. 24.40
+.05
-.05
17.30
Chicago
Cracker
16.10
0.10
-0.15 14.00
Nationally advertised family flour
Fancy cake
17.60
0.10
-0.15 15.50
Dollars
New York
Nov. 26
Year ago
Winter/spring blend
19.70
0.80
0.55 17.25
Family patent, 2-25s papers 22.50
22.50
Spring standard patent 22.65
2.75
1.25 19.30
4-10s
18.25
18.25
High gluten
25.65
2.75
1.25 22.30
8-5s
18.40
18.40
Fancy cake
19.60
0.10
-0.15 17.50
18-2s
21.76
21.76
Rye, white
16.10
0.05
-0.45 17.35
Self-rising
+88c per bale +88c per bale
Los Angeles
Bakers standard patent 20.15
0.80
0.55 17.25
Pastry
19.95
0.80
0.55 17.20
36 / November 30, 2010 Milling & Baking News

Spring standard, Minneapolis
Bulk, f.o.b. car, $ per cwt

Cracker flour, Chicago
Bulk, f.o.b. car, $ per cwt

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - November 30, 2010

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