Milling & Baking News - September 30, 2014 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS SEPTEMBER 30, 2014 / FOOD INGREDIENT SOLUTIONS® After amazing surge, hard wheat cash basis seen remaining strong Tracking gradual reductions in sodium Consumers may adjust to products with lower sodium over time Story on Page 21 LATE NEWS North Dakota Mill to expand BISMARCK, N.D. - The North Dakota Industrial Commission has authorized the expenditure of $19,815,000 to increase milling capacity at the North Dakota Mill in Grand Forks, N.D., by 11,500 cwts per day. The mill currently has capacity of 38,000 cwts per day, according to the Grain & Milling Annual 2014 published by Sosland Publishing Co. With the expansion, North Dakota Mill will become the sixth largest U.S. milling company, up from ninth currently. The Grand Forks mill is also the nation's largest, ahead of Kraft Foods' Toledo, Ohio, mill, which has daily capacity of 31,000 cwts. "This expansion will create additional demand Continued on Page 8 KANSAS CITY - The cash basis on benchmark 14%-protein hard red spring wheat in Minneapolis briefly surged to $6 a bu on Sept. 11 and 12, topping the value of the underlying Minneapolis December futures contract, which settled at $5.92¾ and $5.78 a bu, respectively, on those days. The cash basis tumbled by 42%, to $3.50 a bu over the December future, on Sept. 15, and early last week was trading at around $2.30 over, down 62% from the high but still historically strong and two-and-a-half times the year-ago value. A number of factors contributed to the meteoric rise and subsequent plunge in the 14%-protein spring wheat basis, which traders said was based on the trade of but a few cars. Traders don't expect to see the $6 a bu premium on 14% spring wheat again this season, but conditions still support strong cash spring wheat premiums, which, in turn, help prop up the hard red winter wheat cash basis in Kansas City. Steve Freed, vice-president of research at ADM Investor Services, Inc., Chicago, said he sees the strong cash basis in Minneapolis hanging on for a "long time," adding that he expected the hard red winter basis also to remain strong. The cash wheat basis in Minneapolis Continued on Page 14 With shareholder okay, Bimbo looks to early October for share offering MEXICO CITY - A proposed secondary offering of about $700 million of Grupo Bimbo S.A.B. de C.V. common stock will take place in early October "if the conditions are there," a company spokesperson said Sept. 20. Bimbo shareholders, at a general extraordinary meeting Sept. 18, approved a management plan to offer 201,250,000 series A shares. With a 15% overallotment option, as many as 231,437,500 shares may be sold, equating to about 5% of the outstanding shares as of Dec. 31, 2013. Based on a closing price Sept. 18 of 39.80 pesos ($3), the offering, with the overallotment, would raise about 9.2 billion pesos ($694 million). The resolutions authorized Bimbo to sell the shares in Mexico, the United States and other foreign markets at a value to be determined based on prevailing market conditions at the moment the offering takes place and other relevant factors. The percentage of the offering to be placed in Mexico and the percentage in the Global Offer remained to be determined. Responding to a query from Milling & Baking News, Bimbo explained its Continued on Page 10

Table of Contents for the Digital Edition of Milling & Baking News - September 30, 2014

Milling & Baking News - September 30, 2014
After amazing surge, hard wheat cash basis seen remaining strong
With shareholder okay, Bimbo looks to early October for share offering
Late News - North Dakota Mill to expand
Table of Contents
News Comment - Significant wheat role in conflict with ISIL
Editorial - Seeking insights from a rare success
Late News
Business - General Mills to close Lodi plant as part of wider streamlining
Amid soft demand, Cargill to close Memphis corn refinery
Bay State Milling unveils new logo
Ardent Mills rolling in the Rockies
Tesco suspends senior executives; half-year financials misstated
Crumbs Bake Shop continues rebranding process
Dave’s Killer Bread going national
Bassetts adding artisan dinner rolls
B.B.U. sells former Colonial baking plant
Mondelez on pace toward wellness, sustainability goals
Papa Murphy’s and Udi’s announce partnership
Education and Research - Extraordinary promise seen in newly discovered wheat gene
Data - C.P.I. for baked foods and cereals climbs more slowly in August
White pan bread average price falls 1.7c per lb in August
Food Ingredient Solutions - Tracking gradual reductions in sodium
Praise for potassium
Weather Outlook - World wheat prospects look promising
Nutrition and Health - Praise, questions after study showing trillions of calories cut
Study explores effectiveness of calorie labeling at restaurants
Durum varieties may increase fiber levels in pasta
International - Cargill sues Syngenta over rejected corn export cargoes bound for China
World hunger falls by more than 100 million over last 10 years
Supplier Innovations
Ingredient Market Trends - I.G.C. raises forecasts for world wheat, corn and soybean production
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - September 30, 2014