Milling & Baking News - April 16, 2013 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS APRIL 16 , 2013 / Grain Market Roundtable  MILLING TECHNOLOGY Large stocks, weather optimism set stage for lower but choppy prices Corn leads markets lower before rebound Fine tuning the purification process Purifiers play a vital role in the production of low ash, bright color flour Story on Page 27 LATE NEWS Wheat sales to China confirmed WASHINGTON — The U.S. Department of Agriculture said April 11 that private exporters have sold 360,000 tonnes of U.S. soft red winter wheat to China for delivery in the 2013-14 marketing year, which begins June 1. Rumors of U.S. soft red wheat sales to China had been circulating in the market for the past several days, including talk that China may have bought as much as 1 million tonnes, an amount that has not been confirmed. It was not known if there will be additional sales to China reported by the Department. Export wheat sales to China in calendar year 2012 were 594,843 tonnes, an eight-year Continued on Page 8 KANSAS CITY — Larger-than-expected March 1 stocks of corn, wheat and soybeans significantly pressured grain and oilseed futures prices after the U.S. Department of Agriculture released its quarterly Grain Stocks and annual Prospective Plantings reports on March 28. While most plantings numbers came in near the average of pre-report trade expectations, all of the stocks numbers, and especially corn, caught the trade by surprise. About two weeks later, those stocks numbers influenced the April 10 World Agricultural Supply and Demand Estimates in the form of revised carryover and use forecasts, although the more surprising numbers then were seen in the world numbers from the U.S.D.A., which also were mostly bearish. “The U.S.D.A. stocks report was bearish and the biggest market miss ever,” Steve Freed, vice-president of research, ADM Investor Services, Inc., said. By the market close on Monday, April 1, nearby May corn futures had plunged 93c a bu, or about 13%, in the two trading sessions since the report, to a ninemonth low of $6.42¼ a bu. In the same Continued on Page 20 Opportunity to ‘mine’ pasta pockets described by ConAgra executive PALM BEACH, FLA. — Although pasta sales have been flat to down over the past two years, certain segments of the category show signs of growth, said Brian Fox, vice-president of category management for Ralcorp, a divison of ConAgra Foods, Inc. Mr. Fox, who joined ConAgra with the company’s acquisition of Ralcorp Foods, Inc., delivered a “State of the pasta industry” presentation on April 9 at the National Pasta Association’s annual meeting at the Ritz-Carlton Palm Beach hotel. Looking at the mega pasta category, Mr. Fox said dollar sales of dry pasta mixes, soup mixes and frozen entrees were up in 2012, while dry pasta, frozen/refrigerated pasta, canned pasta and frozen Italian pasta meals were down during the year. Overall, volume in the 1.5-billion-lb pasta industry was down about 3% in 2012, while dollar sales were up about 0.3%. “There are pockets out there that are still growing, and it’s up to us to find those and mine those as we go forward,” Mr. Fox said. Possible avenues for growth mentioned by Mr. Fox included new demographics, innovative products developed around key health attributes and entry into alternate channels. In order to achieve this growth, though, Mr. Fox said the pasta industry must first Continued on Page 36

Table of Contents for the Digital Edition of Milling & Baking News - April 16, 2013

Milling & Baking News - April 16, 2013
Grain Market Roundtable - Large stocks, weather optimism set stage for lower but choppy prices
Opportunity to ‘mine’ pasta pockets described by ConAgra executive
Late News - Wheat sales to China confirmed
Table of Contents
News/Comment - Perils aplenty in markets with arrival of spring
Editorial - Realism needed about grain handling
Late News
Business - With auctions approved, Hostess focuses on completing liquidation
Canada Bread intent on realizing stronger sustained profitable growth
Roberto Servitje retiring in July as Grupo Bimbo chairman
Oil trading giant Vitol enters global grain markets
Flowers secures financing to help cover cost of Hostess acquisition
Bartlett flour mill in Statesville damaged by explosion, fire
Rodkin believes Ardent Mills will be ‘go-to company
Cain Food expands R.&D. center, bake shop
Post to close California plant
Washington - President proposes overhaul of foreign food aid and end to P.L. 480
Proposal to end P.L. 480 raises concern
Financial Results - Cargill quarterly earnings slide; effects of drought cited
Energy segment surge lifts CHS second-quarter financial results
People - Bastean to succeed Schroder at Bunge North America
Brad Berentson to serve as c.f.o. at Ardent Mills
Milling Technology - Fine tuning the purification process
Richardson to double canola capacity in Lethbridge
Vortex expanding headquarters
Nutrition and Health - Letter to National Geographic disputes gluten claim
Industry Activities - Millers division meetings held in Palm Beach
Pat Toomey appears at Pepperidge plant calling for sugar reform
BEMA honors Steve Wright for exemplary service
Pasta marketers encouraged to push the right buttons
Ingredient Market Trends - Spring wheat planting gets under way
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - April 16, 2013