Milling & Baking News - July 4, 2017 - 40

Ingredient Week X

Bakery Flour
Bookings of bakery flour were limited but included some notable defensive contracting last week. Prices of all
grades were raised sharply.
Raging Minneapolis spring wheat futures dominated discussions among millers and bakers. A highlight of the week's
business was spring grade flour coverage
taken by a couple of major buyers who,
alarmed at the spring wheat futures rally
and declining crop conditions across the
northern Plains, extended contract balances through December out of concern
futures may trade even higher. These
were exceptional transactions, and most
bakers and other buyers of flour milled
from hard spring wheat and hard winter
wheat sought refuge on the sidelines.
While the northern Plains drought commanded attention, the winter wheat harvest continued, and despite pockets of protein uncovered in parts of the Oklahoma
panhandle and western Kansas, it seemed
southern Plains producers will harvest
their second consecutive hard red winter
wheat crop with low average protein. This
outcome would heighten dependence on
the spring wheat crop to provide protein to
bakers requiring minimum protein levels
in their baked foods. This prospect, in turn,
helped fuel the spring wheat futures rally.
Coverage for flour milled from hard
wheat for July-September was estimated
at about 65%. Component coverage was
more extensive, leaving bakers to complete
contracts at their own pace by covering
outstanding components, primarily basis

Bakery ﬂour
Bulk, f.o.b. car, $ per cwt
Kansas City
Bakers short patent
Bakers standard patent
Second clear
Third clear
Minneapolis
Spring short patent
Spring standard patent
High gluten
Whole wheat
Specialty whole wheat
Fancy spring clear
First spring clear
Rye, white
Chicago
Cracker
Fancy cake
New York
Winter/spring blend
Spring standard patent
High gluten
Fancy cake
Rye, white
Los Angeles
Bakers standard patent
Pastry

and millfeed. Flour coverage in OctoberDecember was about 30%.
Cookie-cracker and specialty bakers'
soft flour coverage was slightly behind
bread bakers' coverage in both quarters.
In contrast to the drama across the
hard wheat states, millers have been
mostly pleased with the quality of the
soft red winter wheat harvested to date.
Mill grind last week was five to six
days. Holiday downtime will reduce
grind to about four days this week. MBN

Family Flour
Sales and shipments of national and
regional brands of family flour were
seasonally sluggish last week. Carlot list
prices were unchanged.
Home bakers weren't expected to give
a boost to family flour until the beginning of the 2017-18 school year and the
approach of the fall baking season.
Some millers have begun pre-packing
flour for the fall.
Business in private label flour also was
slow. One manufacturer indicated private
label flour buyers have covered about 75%
of their flour needs through September. MBN

Semolina
Bookings of semolina, granulars and
durum flour were lacking last week.
Prices were raised and were at the highest levels since August 2015.
The price of choice milling hard amber
durum as quoted at the Chicago gateway
for delivery beyond was a nominal $9.50 a
bu, up 50c from the previous week. Millers

emphasized there has been no recent
trades in the cash market, and should
durum buyers require spot supply, they
may have to bid even higher. For now,
though, durum mills seemed to be operating well with existing inventories and
pipelines. The Minneapolis durum price
was pegged at about $9.20 a bu.
Strength in the cash durum pricing reflected concerns over the decline in durum condition across the northern Plains
and the extraordinary rally in Minneapolis spring wheat futures. Spring wheat
may be substituted for durum for certain
products and applications.
Durum mill grind was about 5½ days
last week but was expected to be trimmed
this week because of holiday downtime.
The U.S. Department of Agriculture indicated 22% of the North Dakota durum
crop was headed by June 25 compared with
43% a year earlier. With much of the durum
area still gripped by drought, the North Dakota crop was rated 24% good, 53% fair, 18%
poor and 5% very poor compared with 18%,
61%, 18% and 3%, respectively, the previous
week. Last year around the same date, the
North Dakota durum crop was rated 76%
good to excellent. The Montana durum crop
was 9% headed by June 25. The Montana
crop was rated 19% good to excellent, 57%
fair and 24% poor to very poor. MBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$19.00
$17.00
$15.00

No. 1 hard amber durum
Track, Chicago
- Change from - Year
- Change from - Year $ per bu
June 30 June 23 June 16 ago
June 30 June 23 June 16 ago Choice milling 13% 9.50
+.50
+.80 8.75
18.05
17.95
8.85
...

1.45
1.45
-
...

1.40
1.40
-
...

12.95 Track, Minneapolis
12.85 $ per bu
12.00 Choice milling 13% 9.20
...

20.50
20.40
23.40
20.40
20.75
20.25
20.15
14.60

1.90
1.90
1.90
1.90
1.90
1.90
1.90
-0.25

2.50
2.50
2.50
2.50
2.50
2.50
2.50
-0.25

13.75
13.65
16.65
13.65
14.00
13.50
13.40
16.80

14.00
15.50

1.10
1.10

1.05
1.05

12.20
13.70

20.45
22.75
25.75
17.50
17.10

1.45
2.10
2.10
1.10
-0.25

1.40
2.60
2.60
1.05
-0.25

15.35
15.65
18.65
15.70
19.30

23.05
23.10

1.45
1.45

1.40
1.40

18.05
18.10

40 / July 4, 2017 XMilling & Baking News

$13.00
$11.00
J

J
Previous Year

A
Current Year

Spring standard, Minneapolis
+.50

+.80

8.45

Bulk, f.o.b. car, $ per cwt
$22.00

Semolina

$20.00

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
June 30 June 23 June 16
Semolina
23.45
+1.10
+1.85
Granulars
23.25
+1.10
+1.85
Flour
23.15
+1.10
+1.85
First clear
16.00
...
...
Second clear 12.00
...
...
Semolina - N.Y. 26.75
+1.20
+1.95

Year
ago
21.60
21.40
21.30

$18.00
$16.00
$14.00
$12.00
J

J
Previous Year

Current Year

Cracker ﬂour, Chicago

24.40

Nationally advertised family ﬂour

Bulk, f.o.b. car, $ per cwt
$17.50

Dollars
June 30
Family patent, 2-25s papers 24.12
4-10s
n.a.
8-5s
18.52
18-2s
20.64
Self-rising
n.a.

Year ago
24.12
n.a.
18.52
20.64
n.a.

$15.50
$13.50
$11.50
$9.50
J

J
Previous Year

A
Current Year

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - July 4, 2017

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