Milling & Baking News - November 17, 2020 - 40

Ingredient Week

Bakery Flour
Bookings of bakery flour were limited
last week even as prices were mostly lower.
Spring-grade buyers took the most
coverage, millers said. Cookie-cracker
and specialty bakers continued to lag
spring grade and pan-bread flour buyers in extending 2021 ownership.
Some buyers were adding to coverage
to keep to internal calendar requirements
for flour pipelines. More requests for offers were submitted for price exploration
and in an effort to lock in supply at a time
of uncertain grind at flour mills.
" For the last couple years, supply hasn't
been a concern. It is today, " a miller said.
Futures advances in the wake of the
Nov. 10 USDA supply-and-demand report, which lowered the forecast carryout
of wheat supplies in 2021, caught buyers'
attention. Some were motivated to lock
in the futures component, especially after
futures turned lower later in the week.
Distributors were taking typical
short-term extensions. Other buyers
included mid-size commercial bakeries
that supply quick-serve restaurants.
Millers noted a resurgence in exploring
risk management tools such as options
trading in the wake of market volatility.
For the current quarter, most bakers
were fully covered. For January-March
2021, coverage estimates ranged widely.
Spring-grade buyers had covered between 25% and 70% of their prospective needs, pan-bread flour buyers had
locked in between 50% and 75%, and
soft flour buyers remained 10% to 50%

Bakery ï¬our
Nov. 13

40 / November 17, 2020

Family Flour
Sales and shipments of national and regional brands of family flour were brisk
during one of the year's peak weeks.
Flour manufacturers continued to
pack around the clock and were drawing
on inventories. Most said orders were on
par with 2019 or slightly higher. Private
label buyers were well covered through
December but have yet to extend coverage into 2021.
Aggressive promotions were not widespread, although most supermarkets had
some products on special. National brands
in a 5-lb package mostly ranged in price
from $2.49 at grocery stores in mid-size
cities to $2.99 in larger metropolitan areas.
Private label flour in the same size ranged
from $2.49 at suburban grocery stores to
$2.08 at rural mass merchandiser locations.
Ideas were fewer or less aggressive promotions than in a typical November were
an effort to curtail potential hoarding in
light of spiking coronavirus cases. MBN

Semolina
Bookings of semolina, durum flour
and granulars were limited last week.
Prices were lower.
Pasta manufacturers were not active
buyers beyond a few truckloads, millers said. Buyers earlier covered between
70% and 80% of expected semolina
needs for the first quarter of 2021 and

No. 1 hard amber durum

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

covered. April-June coverage was mostly
steady at 40% for spring grades, 35% for
pan-bread flour and 20% for soft flour. MBN

- Change from - Year
Nov. 6
Oct. 30 ago

Track, Chicago
$ per bu
Nov. 13
Choice milling 13% 8.20

15.95
15.85
8.85
...

-
-
-
...

0.45
0.45
-
...

13.75 Track, Minneapolis
13.65 $ per bu
8.85 Choice milling 13% 7.90
...

15.00
14.90
15.90
14.90
15.25
14.75
14.65
19.10

-0.30
-0.30
-0.30
-0.30
-0.30
-0.30
-0.30
-0.15

0.15
0.15
0.15
0.15
0.15
0.15
0.15
-0.15

15.35
15.25
16.25
15.25
15.60
15.10
15.00
19.10

15.40
16.90

-0.15
-0.15

0.15
0.15

13.65
15.15

-
-0.20
-0.20
-0.15
-0.15

0.45
0.10
0.10
0.15
-0.15

16.15
17.30
18.30
17.15
21.60

20.75
20.80

-
-

0.45
0.45

18.35
18.40

Milling & Baking News

Bakers standard, Kansas City
Bulk, f.o.b. car, per cwt
$17.00
$15.50
$14.00

- Change from - Year
Nov. 6 Oct. 30 ago
-
+.05 8.75

$12.50
N

Previous Year

A
Current Year

Spring standard, Minneapolis
-

+.05

8.45

Semolina

18.35
17.05
18.05
18.90
21.60

about 45% of April-June 2021 needs.
" The market continues to feel more
and more comfortable from a semolina
supply-and-demand aspect, but more
than that, pasta supply and demand, " a
Midwest durum miller said. " I see a relaxation in demand for semolina, which
is really not that atypical for last-half November and December, " he said.
Pasta makers, like many other food
sectors, were more prepared for the possibility of panic-buying in case the recent
spike of COVID-19 cases generates a return to strict lockdowns.
" Not only are pasta manufacturers
making the cuts that are in high demand
when there's a large rush, they've even
gone back to making specialty cuts, " the
miller said. " Warehouses aren't full by
any means, but there is a non-burdensome inventory of everything, very different than March and April, " he said.
The price of choice milling hard amber
durum as quoted at the Chicago rail gateway for delivery beyond was $8.20 a bu.
The Minneapolis price was $7.90 a bu.
The 2020 durum wheat crop was fully
stored away. Farmer finances more than
logistics would dictate when more durum comes to market, a miller said. Some
growers may want to sell it sooner rather
than later to lock in the current tax rates. MBN

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Nov. 13
Nov. 6 Oct. 30
Semolina
19.30
-.10
-
Granulars
19.10
-.10
-
Flour
19.00
-.10
-
First clear
14.00
-
-
Second clear
7.00
-
-
Semolina - NY 22.50
-.10
-

$19.00
$17.00

Year
ago
20.70
20.50
20.40
14.00
7.00
23.90

Nationally advertised family ï¬our

$15.00
$13.00
$11.00
N

Previous Year

A
Current Year

Cracker ï¬our, Chicago
Bulk, f.o.b. car, per cwt
$16.20

Dollars
Nov. 13
Family patent, 2-25s papers 24.12
4-10s
...
8-5s
18.52
18-2s
20.64
Self-rising
...

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

Year ago
24.12
...
18.52
20.64
...

$15.20
$14.20
$13.20
$12.20
$11.20
N

F
Previous Year

A
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - November 17, 2020

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