Milling & Baking News - January 25, 2011 - 33

Ingredient Week 

Bakery Flour
Bookings of bakery flour were limited
last week. Prices surged.
Rallying wheat futures prices kept
most bakers on the sidelines. Spring
wheat futures contracts in Minneapolis
climbed well above $9 a bu, and Kansas
City contracts weren't far behind. Chicago soft red winter wheat futures contracts also advanced, although they continued to lose ground vis-à-vis the hard
wheat futures contracts.
With futures off-putting, most activity last week was found in the component markets. Basis coverage and even
millfeed coverage for the second quarter
was taken. This activity was most pronounced in the hard wheat markets, but
there were transactions in the soft markets as well. The component activity resulted in the completion of some bakery
flour contracts for the second quarter,
but not to the extent it increased industry flour coverage significantly.
Bakers and other flour buyers earlier
covered nearly all of their needs through
March. Second-quarter 2011 coverage remained at about 30% in the market for
bread flour. Cookie-cracker and specialty bakers continued to hold more extensive coverage than the bread bakers.
Bakers and other flour buyers braced
for a continuation of uncertain and highly volatile market conditions well into
spring. They were cautioned April-May
may usher in even greater gyrations than
have been seen to date.
Mill grind averaged 5½ days in the

Bakery flour

Southwest, six-plus in the Upper Midwest, 6½ in the Central states, five days
in the Northeast and Southeast and five
to six days on the West coast. MBN

Family Flour
Sales of national and regional brands
of family flour were seasonally sluggish
last week. Carlot list prices were unchanged.
Scattered promotions on grocers'
shelves were indicated with liquidation
of remaining holiday inventories the
likely aim. In instances in the Southeast,
various brands were offered at $4 for
two 5-lb bags. Elsewhere, prices mostly
returned to their pre-holiday levels.
The family flour market typically is
quiet until the weeks before Easter, the
next holiday that prompts an expansion
in home baking.
In the market for private label flour,
most grocers and other buyers have covered their flour needs through old crop
or the 2011 second quarter. MBN

Semolina
Bookings of semolina, granulars and
durum flour expanded last week but
were not heavy. Prices spiked above $26
a cwt and were at the highest levels since
October 2008.
The price of choice milling hard amber
durum quoted as a delivered Chicago/
beyond value surged to a nominal $11.30
a bu. Offers were said to be above $12 a
bu. The Chicago price equated to a Minneapolis durum price of $11 a bu. Trading

was thin with urgently sought spot loads
changing hands near the higher levels.
Rail logistics across the northern Plains
were said to be horrible with bitter cold
winter weather thwarting railroad efforts
to improve performance.
But there were few indications pointing to producer interest in selling additional durum even if transport of supply
from the farm to country elevators were
easier. Farmers saw durum returning to
its more traditional position as the highest-priced of American wheat classes and
seemed to be content to see just how high
prices might climb. If there was an optimistic note to be struck it was that the
higher prices may encourage producers
to plant more acres to durum this spring.
Price strength and little prospect for
relief anytime soon encouraged a few
pasta manufacturers to put on additional ownership in the second quarter. It was estimated 60% to 65% of the
semolina needs for that quarter have
been booked. In isolated instances, pasta
makers inquired about pricing through
the remainder of the calendar year, but
offers into new crop were mostly lacking
because of market uncertainties.
The pasta business seemed buoyant
through all, and some durum mills ran
at least six days last week to keep up. 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
Jan. 21 Jan. 14 Jan. 7 ago
Jan. 21 Jan. 14
Jan. 7 ago Choice milling 13% 11.00
+.80
+1.40 5.80
Kansas City
cents per bu
Bakers short patent
21.20
1.20
1.30 13.35 Amber discount
10.00
-
-
10.00
Bakers standard patent 21.10
1.20
1.30 13.25 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
24.55
1.35
1.00 15.45 Bulk, f.o.b. Minneapolis, $ per cwt
- Change from - Year
Spring standard patent 24.45
1.35
1.00 15.35
Jan. 21 Jan. 14 Jan. 7
ago
High gluten
27.45
1.35
1.00 18.35
26.60
+2.00
+3.45
14.40
Whole wheat
24.45
1.35
1.00 15.35 Semolina
26.40
+2.00
+3.45
14.20
Specialty whole wheat 24.80
1.35
1.00 15.70 Granulars
26.30
+2.10
+3.45
14.10
Fancy spring clear
24.30
1.35
1.00 15.20 Flour
13.60
-
-
13.05
First spring clear
24.20
1.35
1.00 15.10 First clear
-
-
11.00
Rye, white
20.70
-0.05
0.20 14.95 Second clear 11.00
Semolina - N.Y. 29.30
+2.00
+3.45
17.10
Chicago
Cracker
19.35
1.15
1.10 13.00
Nationally advertised family flour
Fancy cake
20.85
1.15
1.10 14.50
Dollars
New York
Jan. 21
Year ago
Winter/spring blend
23.60
1.20
1.30 15.75
Family patent, 2-25s papers 22.50
22.50
Spring standard patent 27.00
1.50
1.35 17.60
4-10s
18.25
18.25
High gluten
30.00
1.50
1.35 20.60
8-5s
18.40
18.40
Fancy cake
22.85
1.15
1.10 16.50
18-2s
21.76
21.76
Rye, white
23.20
-0.05
0.20 17.45
Self-rising
+88c per bale +88c per bale
Los Angeles
Bakers standard patent 21.65
-0.10
-0.30 15.40
Pastry
21.20
-0.30
0.15 16.50
34 / January 25, 2011 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 - January 25, 2011

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