Milling & Baking News - August 29, 2017 - 32

Ingredient Week X

Bakery Flour
Bookings of bakery flour expanded last
week although not all suppliers shared
equally in the activity. Price adjustments
were mixed with hard wheat flours raised
and soft flour prices lowered.
New contract lows in Kansas City
and Chicago wheat futures encouraged
both additional futures coverage and
flat-bookings in October-December and
in the first and even second quarters of
2018. This activity was seen in all grades.
One miller estimated flour coverage for October-December expanded to
around 65% with soft flour and spring
grade coverage narrowly leading that of
pan bread flour. Another miller suggested coverage was not that extensive, while
yet another said most of his buyers had
booked flour well into 2018. The range
of coverage estimates reflected different
approaches to booking flour in what has
been a difficult environment.
Booking flour in the past several
weeks has been fraught with risk and
uncertainties. Many bakers booked
flour when futures were raging higher
in June out of fear futures might climb
yet higher, only to see futures retreat in
July-August. In June the concern was
drought would savage the spring wheat
crop whose protein was required to compensate the dearth of protein seen in the
hard red winter wheat crop. Those concerns peaked in early July, when Minneapolis spring wheat futures topped
$8 a bu. While all knew futures could
not trend endlessly higher, few were

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

prepared for the suddenness and extent
of the slump, given the fundamental
supply-and-demand scenario didn't
seem that different in late August than it
was in late June.
Just as futures couldn't trend much
higher in early July, ideas were futures
weren't likely to trend much lower now,
which may encourage additional flour
booking in the next several days.
Mill grind was heavy in the last full
week of grind before Labor Day weekend,
averaging six days plus in most regions. MBN

Family Flour
Sales of national and regional brands
of family flour were increasing slowly
with schools having opened for the 201718 school year in many areas. Carlot list
prices were unchanged.
Sales and shipments should expand
into the key fall baking season. Promotions on store shelves weren't evident yet.
Manufacturers expected baking season volume would be similar to that seen
last year or slightly smaller, which would
be in accord with long-term trends. MBN

Semolina
Bookings of semolina, granulars and
durum flour expanded modestly last
week. Prices were dropped.
The price of choice milling hard amber
durum as quoted at the Chicago gateway
for delivery beyond was a nominal $9.75
a bu, down 50c from the previous week
and the lowest since early July. The Minneapolis price was $9.45 a bu. There was a

carry in the market with October-December pricing indicated at around $10.
Pasta manufacturers were said to have
covered about 75% of their semolina
needs for October-December.
Semolina shipments were seasonally strong, and mill grind approached
seven days in some cases, partly to offset
downtime expected around Labor Day.
The North Dakota durum harvest was
19% completed by Aug. 20, according to
the U.S. Department of Agriculture field
office in that state. The crop's condition
rating as the harvest began to accelerate
was 11% good, 45% fair and 44% poor
to very poor. The U.S.D.A. indicated the
Montana durum harvest was 75% completed by Aug. 20 compared with 50% a
week earlier and 28% as the recent fiveyear average for the date.
Durum growers haven't been heavy
sellers of their harvest to date as prices
continued to retreat from recent highs.
The Canadian durum harvest also was
under way. Millers and grain merchants
noted Canadian growers and grain traders were pursuing U.S. business, offering
durum for the fourth quarter of 2017 and
the first quarter of 2018. This was notable
because Canadian durum growers and
merchants haven't been aggressive in
seeking business in the United States. 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
Aug. 25 Aug. 18 Aug. 11 ago
Aug. 25 Aug. 18 Aug. 11 ago Choice milling 13% 9.75
-.50
-1.25 8.25

$13.00
$11.00
A

Previous Year

14.65
14.55
8.85
...

0.30
0.30
-
...

0.20
0.20
-
...

12.25 Track, Minneapolis
12.15 $ per bu
11.00 Choice milling 13% 9.45
...

17.70
17.60
20.60
17.60
17.95
17.45
17.35
14.85

0.20
0.20
0.20
0.20
0.20
0.20
0.20
0.05

13.45
13.35
16.35
13.35
13.70
13.20
13.10
14.80

11.55
13.05

-0.10
-0.10

-0.65
-0.65

10.10
11.60

17.05
19.90
22.90
15.05
17.35

0.30
0.15
0.15
-0.10
0.05

0.20
0.15
0.15
-0.65
0.05

14.65
15.55
18.55
13.60
17.30

19.65
19.70

0.30
0.30

0.20
0.20

17.35
17.40

32 / August 29, 2017 XMilling & Baking News

Current Year

Spring standard, Minneapolis
-.50

-1.25

7.95

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

Semolina

$20.00

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Aug. 25 Aug. 18 Aug. 11
Semolina
24.20
-1.25
-3.10
Granulars
24.00
-1.25
-3.10
Flour
23.90
-1.25
-3.10
First clear
17.00
...
...
Second clear 10.00
...
...
Semolina - N.Y. 27.40
-1.25
-3.10

Year
ago
20.45
20.25
20.15

$18.00
$16.00
$14.00
$12.00
A

F
Previous Year

23.25

Nationally advertised family ﬂour

M
Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$15.50

Dollars
Aug. 25
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.

$13.50
$11.50
$9.50
A

F
Previous Year

M
Current Year

bakingbusiness.com / world-grain.com

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Milling & Baking News - August 29, 2017

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