Milling & Baking News - January 11, 2011 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JANUARY 11, 2011 / FEATURE Commodity and ingredient price advances outpace equities in 2010 Solid, if lagging, gains posted by grain-based foods shares Story on Page 20 LATE NEWS Governor Rendell may intercede to help Tasty HARRISBURG, PA. - Days after Tasty Baking Co. said it was exploring strategic options to deal with financial difficulties, the outgoing governor of Pennsylvania has expressed interest in helping the company weather its problems. The Philadelphia Inquirer on Jan. 7 said Governor Ed Rendell would like the state to loan additional money to Philadelphiabased Tasty. "We are trying to find a way to keep Tastykake on its feet," Mr. Rendell told The Inquirer. "It's an important Pennsylvania company and a significant employer. We'd like them to stay out of bankruptcy." Mr. Rendell, who will only remain in Continued on Page 8 KANSAS CITY - Gains in several agricultural commodity and food ingredient prices outpaced major equity indexes, as well as most other major commodities, including crude oil and gold, to end 2010 at the highest levels since the recordsetting year of 2008, although there were a few exceptions. Equities posted solid gains in 2010, with the Standard & Poor's 500 Index up 13% from the end of 2009, the Dow Jones 30 Industrials average up 11% and the NASDAQ Composite up 17%. By comparison, the muchwatched Standard & Poor's Goldman Sachs Commodity Index, which includes metals, energy, soft and agricultural commodities, ended up 20% in 2010. On an individual contract basis, agricultural futures and cash ingredient price advances were impressive. Nearby March 2011 wheat and corn futures ended 2010 about 50% to 60% above March 2010 contracts at the end of 2009, with Chicago wheat up 47%, Kansas City wheat up 59%, Minneapolis wheat up 62% and Chicago corn up 52%. Soy complex futures price gains were somewhat more modest with March soybean futures ending 2010 up 34% from a year earlier, soybean meal up 22% and soybean oil up 43%. The exception was March rice futures that ended down 4% from 2009. On the ingredient side, flour and vegetable oils posted strong gains in 2010 while dairy and eggs were mixed. Kansas City bakers' standard patent Continued on Page 20 Study raises national food waste estimates WASHINGTON - Americans are consuming 41.9 fewer calories per day, a total of 17.3 lbs per year, than previous estimates, according to findings in a study of loss of the edible share of food at the consumer level. The study was conducted by RTI International in partnership with the Economic Research Service of the U.S. Department of Agriculture. The data are used to estimate overall food consumption through the E.R.S. Loss-Adjusted Food Availability estimates of the E.R.S. Because overall availability of food overstates actual consumption, the E.R.S. adjusts that data for losses - nonedible food parts as well as losses that occur from farm to retail, at retail and at the consumer level. Based on the conclusion that the loss data are "incomplete and need updating," the E.R.S. engaged RTI International, which has proposed new estimates for loss of the edible share of food at the consumer level. "These proposed estimates cover food loss both at home and away from home for most of the commodities included in the series," the E.R.S. said. "These losses include losses during cooking and preparation (e.g., frying fats); discards due to preparation of too much food; expired Continued on Page 33

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Milling & Baking News - January 11, 2011