Milling & Baking News - August 23, 2011 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS AUGUST 23, 2011 bakingbusiness.com / foodbusinessnews.net GRAIN MARKET ROUNDTABLE April-June flour production off 1.1%; six-month total down 1.8% WASHINGTON — Flour output by U.S. mills in April-June eased 1.1% behind the same period of last year, while the rate of grind in the quarter dropped to the lowest levels in six years. Regional statistics underscored a significant flour production pickup in the Western states with mixed results for the spring wheat area and output reductions in most other regions. U.S. mills in the second quarter of 2011 produced 100,313,000 cwts of wheat flour, down 1,166,000 cwts from 101,479,000 in April-June 2010, according to data issued by the Bureau of the Census of the U.S. Department of Commerce. Output was up 0.3% from 100,024,000 in the first quarter, which was the smallest quarterly production in five years. The decrease from a year earlier Second-quarter flour production in million cwts 105,000 100,000 95,000 90,000 85,000 Ample supplies seen in world wheat markets Story on Page 26 2001 2003 2005 2007 2009 2011 LATE NEWS Baked foods, cereal index inches up 0.1% WASHINGTON — The Consumer Price Index for baked foods and cereal products rose 0.1% in July after rising 0.6% in June and 1.2% in May, according to the Bureau of Labor Statistics of the U.S. Department of Labor. The index for all food at home also finished higher, rising 0.6% after gaining 0.1% in June and 0.5% in May. Of the 18 items tracked by Milling & Baking News, 11 posted month-overmonth gains, while 7 finished lower. The July index for Cereals and Bakery Products before seasonal adjustment was 260.9% of the 1982-84 average, up 4.1% from a year ago. For all food at home, the July index was 226.9, up Continued on Page 8 in second quarter output followed a loss of 2,508,000 cwts in the first 2011 quarter compared with the same period in 2010. Earlier quarterly changes had Continued on Page 34 Bakers deal with difficult market conditions in niche ingredients KANSAS CITY — The surge in bakery ingredient prices over the past 14 months has been well chronicled with particular attention given to inputs that are anchors of the industry — flour, shortening and sweeteners. Every year, though, bakers buy hundreds of other ingredients, markets for most of which receive little attention. Several of these markets have experienced wrenching price moves in recent months, each with a distinctive story, a unique set of supply and demand circumstances, as background. Four of these ingredients — guar gum, vitamins, cocoa and agar — are explored in the pages that follow: Guar gum prices surge It’s difficult to imagine a market sustaining a more abrupt and severe shift in supply and demand than guar gum, an ingredient used for a variety of water control applications in baking, including helping with shelf life extensions. Prices in recent months have surged to levels four times above historical averages. Traditionally, guar gum has been viewed as a lower cost input versus alternative ingredients such as xanthan gum, but guar’s “value” position in the marketplace appears increasingly and Continued on Page 18 http://www.bakingbusiness.com http://www.foodbusinessnews.net

Table of Contents for the Digital Edition of Milling & Baking News - August 23, 2011

Miling & Baking News - August 23, 2011
Contents
Editorial - Possibilities from new index of world grain prices
Late News
Business - Bay State expands Winona mill with addition of specialty unit
Business - Bunge acquires margarine assets from C.F. Sauer
Business - ADM expanding Missouri grain elevator
Business - ConAgra closing microwave popcorn facility in Hamburg
Business - Ralcorp executives offer upbeat outlook for Post new products
Business - Ralcorp rejects ConAgra’s second takeover proposal
Business - 57th Street partners with Dawn Food Products
Business - Bakers deal with diffi cult market conditions in niche ingredients
Financial Results - Sara Lee fresh baking unit sees earning improvement in fi scal ’11
Financial Results - Sara Lee on track to exit baking; European business ‘not for us’
Grain Market Roundtable - Ample supplies seen in world wheat markets
Grain Market Roundtable - Weather-reduced corn, sorghum crops
Regulatory Affairs - Hot and cold air to cost more
Data - April-June fl our production off 1.1%; six-month total down 1.8%
Data - Semolina output in April-June gains 8.1%; fi rst-half 2011 up 6.1% to near record aggregate
Financial Results - Flowers earnings slide 16% as cost increases, sales mix pressure margins
Financial Results - Flowers to cut 32 jobs at Tasty offi ces in Philadelphia
Financial Results - Cargill income climbs 35% in fi scal 2011
Merchandising - Keebler in pact with Red Cross to donate cookies for blood drives
Merchandising - Silver Hills Bakery adds sprouted grain bread
Merchandising - Nonni’s launches Biscotti Bites in three fl avors
People - ADM makes organizational changes
People - Three assume new roles at MGP Ingredients
Ingredient Market Trends - Anxious eyes on the slowly progressing spring wheat harvest
Ingredient Week
Supplier Innovations
Classifieds
Marketplace Business Network
Ad Index
Archive

Milling & Baking News - August 23, 2011

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