Milling & Baking News - February 8, 2022 - 50

TUES | 02 08 2022
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Sosland MarketFocus provides
executives, purchasing managers
and traders with vital daily market
coverage. MarketFocus includes information
on cash and futures grain
markets, cash fl our and millfeed
markets, export wheat and fl our
business, crop conditions, country
movement of grain, basis levels
and more... plus regular updates of
sweetener and shortening prices
and key fi nancial markets. Published
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Newsletter
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Volume 54, Number 8
February 26, 2021
BBU OPERATING INCOME UP 84% IN 2020... Sales growth across all key categories of
branded products fueled strong fourth-quarter sales at the North American
business of Grupo Bimbo SAB de CV. Adjusted EBITA margins widened sharply. For
the year ended Dec. 31, 2020, operating income of Bimbo Bakeries USA was 11.2
billion pesos ($542 million), up 84% from 6.09 billion in 2019. Sales were 176.4
billion pesos ($8.545 billion), up 22% from 144.01 billion in 2019. In the fourth
quarter, BBU operating income was 3.64 billion pesos ($177 million), up 148% from
1.47 billion in October-December 2019. Sales were 44.54 billion pesos ($2.16
billion), up 19% from 37.37 billion pesos a year earlier. Bimbo said business in
North America was strong across all key categories. Foodservice and convenience
channels were weak. The strong North American results were part of a record year
at Grupo Bimbo, said Diego Gaxiola, chief financial officer. " In 2020 we reached
record levels for net sales and adjusted EBITDA, we doubled our gross cash flow
and reached the lowest leverage of the past 10 years, " Mr. Gaxiola said.
...GAINS MARKET SHARE BROADLY IN FOURTH QUARTER. Reviewing fourth-quarter results
during a Feb. 24 conference call with investment analysts, Daniel Servitje, chief
executive officer, identified numerous highlights, including the record profit
margins. " We were able to gain market share in all our branded categories,
especially in breakfast from the Thomas' bagels brand, buns and rolls driven by
Ballpark brand strength and sweet baked goods where Entenmann's outperformed the
category. We also continue to see strong performance of the retail channel, which
includes grocery, mass merchandising and club, and the e-commerce channel more
than doubled its size. We gained millions of new households due to the exposure
of our brands in the pandemic, which we intend to retain by continuing to add
incremental marketing investments and excellent in-store execution. "
FROM THE BAKERY PIPELINE_____________________________________________________________
Most consumers still perceive tortillas and flatbreads to be healthier than regular
bread. However, if they compare product labels, some tortillas and flatbread may
have a greater amount of fat, salt and calories per serving than traditional
bread. That's simply because of the density of these products, which are often
hot or cold pressed and don't contain the airiness of sandwich and specialty
bread, buns and rolls. As a result, many producers such as FGF Brands focus on
simple, nutritious ingredients for its clean label products. The Toronto-based
bakery's popular Stonefire naan is made with an authentic recipe, including
buttermilk and ghee. When baked in the patented tandoor tunnel ovens at high
temperatures, it creates the signature bubbles and chars of an authentic naan.
Additionally, the bakery strives to provide value and entertainment with its
Stonefire brand. " Our focus will always remain on delivering value, but also
value as 'quality for the price.' We will not sacrifice quality for our
consumers, " Jim Gibson, vice president of marketing, FGF Brands, told Baking &
Snack for its February issue. " With a reduced entertainment budget and higher
incidence of in-home meals, why not ensure that consumers' in-home experience is
a great one? " The use of alternative flours also is becoming more prevalent.
Tortilla producers have responded to the appeal of plant-based foods, outside of
traditional grain, using options like almond, coconut, cauliflower and pea
protein. Gluten-free is driving corn tortilla sales, noted Natalie BacaniGutierrez,
managing director, Tortillas Inc., Las Vegas. In today's market,
health and nutrition are in the eyes of the beholder.
Published each market day by Sosland Publishing Company * 816-756-1000 * 816-756-0494 fax * www.sosland.com
Friday, February 26, 2021
* Premiums on hard red winter wheat were unchanged to 3c a bu higher. * Hard red spring wheat basis unchanged to 5c higher.
* Soft red winter wheat mill bids were mostly unchanged. * Taiwan Flour Millers sought offers on 100,410 tonnes of US milling wheat.
* Choice milling hard amber durum in Chicago was $8.65 a bu, unchanged. * Millfeed prices were unchanged to higher.
* Wheat futures tumbled. * Corn futures were mostly lower. * Soybean and soy meal futures declined but soy oil futures mostly advanced.
Cash Wheat
HARD WINTER - Premiums on hard red winter wheat in
Kansas City were unchanged to 3c a bu higher. Top hike
covered 12% through 12.8% proteins, which at 125@135c
over KC May became high mark of inverted basis. Of 48 cars
presented to spot market, 38 were germane to KC basis.
Included were an eight-car set of 12.3%-protein wheat bid at
135c and reflected in basis adjustment. Late-arriving 10-car
set with 12% protein were bid only 133c, and may lower
select proteins Monday, trader said. Also for sale were sets
of 12.4% protein bid 132c and 11.7% protein bid 133c. Set
of 11.9% protein was limited directionally by billing. Set of
10 cars of eastern Nebraska origin traded east over Chicago
gateway. Cars arrived by happenstance a day after base
contract rolled to May at 7c premium to March, as they were
ordered many weeks ago, merchandiser said. Even so, high
11% proteins at 133c over May were basically equal to 140c
over March equivalent. To-arrive trade was active for limited
quantities averaging about a train per month. Ideas were this
level of trade could continue until coverage was adequate.
" Don't think buyers are willing to buy 25% of usage in one
pop, nor are sellers willing to sell that much, " trader said.
Bigger sales could be triggered if May-September spread
narrows to point commercials don't find longer storage advantageous
or seek to open up more space in bins if a large
new crop is coming. Also, a swift economic recovery could
surprise bakers and retailers with a sharp uptick in orders.
Salina spot wheat bids were 7c under KC March; June, 10c
under July. Hutchinson spot wheat bids were 7c under KC
March; June-July, 10c under July. Wichita elevator bids for
nearby were 10c under KC March, 5c higher; new crop, 10c
under July. Gulf bids on 12%-protein hard red winter wheat
for nearby were 140c over KC May; April-May, 146c over.
No. 1 hard winter, basis Kansas City
May
Ord.
11%
11.2%
11.4%
11.6%
11.8%
12%
12.2%
12.4%
12.6%
12.8%
13%
13.2%
13.4%
13.6%
13.8%
14%
+93@+103c
+103@+113c
+103@+113c
+118@+128c
+123@+133c
+123@+133c
+125@+135c
+125@+135c
+125@+135c
+125@+135c
+125@+135c
+113@+123c
+113@+123c
+113@+123c
+113@+123c
+113@+123c
+113@+123c
www.sosland.com
Change
...
...
...
...
+1c
+1c
+3c
+3c
+3c
+3c
+3c
...
...
...
...
...
...
HARD SPRING - Premiums on milling quality hard red
spring wheat in Minneapolis were unchanged to 5c a bu
higher. Three proteins were quoted, all nominally save for
15% premium, which advanced 5c. Inverted basis posted
14% protein 10c higher than high end of 14.5% protein
range. Agricultural Marketing Service indicated a single car
was received in Minneapolis. Considering relatively minor
basis adjustments over past month, dearth of spot offers
today didn't signal a slowdown, merchandiser said, merely a
slow day after relatively high volumes earlier this week and
expected next week. " We might be seeing a bit of a hangover
from last week when railroads had a bunch of cars
placed and ready to go. They're pulling them. They just
haven't cycled back with the next round of empties, " he
said. Ideas were arrivals would be plentiful early next week,
but question was open whether any would be spot sales or
simply adequate to cover applications to contracts for new
month. Choice milling hard amber durum as quoted at the
Chicago rail gateway for delivery beyond was $8.65 a bu,
unchanged; Minneapolis price was $8.35 a bu.
SOFT RED - St. Louis-area mill bids on soft red winter
wheat through March were 45c over Chicago May; April-May,
45c over May. Toledo mill bids through March were the Chicago
March price; April-May, the Chicago May price. Elevator
bids were the Chicago May price; new crop, 5c under Chicago
July. Cincinnati elevator was not accepting old crop; new
crop bid 3c over Chicago July. Michigan white wheat mill
bids were 5c over Chicago March; soft red winter wheat mill
bids were 10c under Chicago March with intent to roll to May
future next week. Gulf bids on soft red winter wheat for nearby
were 110c over Chicago May.
No. 1 northern spring, delivered Chicago/beyond
Minneapolis May
Ordinary
11%
12%
13%
13.5%
14%
14.5%
15%
16%
17%
No quote
No quote
No quote
No quote
No quote
+120c
+100@110c
+145c
No quote
No quote
Hard amber durum, choice milling, Chicago
13%
$8.65
$8.35
...
Hard amber durum, choice milling, Minneapolis
13%
...
No. 1 heavy oats, milling, delivered Minneapolis
Basis March
$4.26½
+7¾c
...
...
+5c
Change
Wheat futures - $ per bu
Kansas City
March
May
July
September
December
Chicago
March
May
July
September
December
Minneapolis
March
May
July
September
December
Settle
$6.24¾
$6.33¾
$6.37¾
$6.41½
$6.48¼
$6.55
$6.60¼
$6.50
$6.46¼
$6.50
$6.31
$6.38¾
$6.46¾
$6.53¾
$6.61¾
Wheat Futures
Robert Bresnahan,
Trilateral, Inc., Chicago
The heightened volatility in
several commodity/financial
markets has caused speculators
to move to the sidelines.
Many advisors are arguing
the easy money has already
been made in both commodity
and equity markets. Advisors
point out the additional
market volatility adds to price
risk and recommends traders
reduce their position size.
This week's break feels technical
in nature. However,
CBOT open interest fell sharply
on Thursday. Corn was
down 49,227 contracts, soybeans
off 12,063 and wheat
down 8,517 contracts. Most
of the liquidation appears to
be related to March 1 delivery
notice day. Most expect buyers
to return before the March
9 WASDE report. Thursday's
low USDA export sales report
forced traders to realize that
demand rationing may finally
be occurring. I firmly believe
that most of the price gyrations
in the grain complex
emanated from financial
Continued on Page 2
Change
-19½c
-18¾c
-18½c
-19c
-19c
-16¾c
-15½c
-13½c
-13¾c
-13¼c
-10½c
-11¾c
-11¾c
-11¾c
-11¼c
High
$6.37
$6.50½
$6.54
$6.58
$6.61½
$6.65¾
$6.74
$6.62
$6.58¼
$6.61¾
$6.38½
$6.48¾
$6.56½
$6.63¼
$6.70
Low
$6.24¾
$6.32½
$6.36½
$6.40½
$6.47
$6.53
$6.58¼
$6.48
$6.44¾
$6.48¾
$6.29¾
$6.37
$6.44¾
$6.52
$6.60
Page 1
US cash sugar: Slow sales continue; steady forecasts
Volume 9, Issue 38
S
ales of industrial sugar for this year and
next year remained slow, with most
activity for 2021-22 on hold until after
the virtual International Sweetener Colloquium,
which wrapped up March 3. Event speakers
forecast prices for 2021-22 would hold
about steady with current spot prices and issued
a warning to buyers not to wait too long
to book supplies because of the potential rebound
in sugar demand as the country emergrestrictions,
es
from
COVID-19
demand remains an area of debate.
Colloquium speakers Frank Jenkins, JSG
Commodities, and Craig Ruffolo, McKeanyFlavell
Co.,
forecast 2021-22
sugar
prices
about steady with current 2020-21 values
(although they differed somewhat on what
those levels were), and both expect subdued
demand during the first part of the year, in part
due to COVID-19.(See story on Page 3.)
Most beet and cane sugar sellers continued
to offer sugar for 2021-22 flat with spot prices,
(36.50¢ a lb f.o.b. Midwest for beet sugar and
38.50¢ to 39.50¢ Southeast, 38¢ to 39.50¢
Gulf and 42¢ Northeast and West Coast for
refined cane sugar).
Contracting for next year beyond December
2021 has been slow. Many buyers and sellers
now are awaiting the March 9 US Department
of Agriculture's World Agricultural Supply and
Demand Estimates report before moving contract
negotiations for the remainder of 202122
beyond the current tire-kicking stage, with
more active sales expected through May.
although
Speakers at
the Colloquium agreed the
in the USDA's
sugar market was well below the 16.1% ending
stocks-to-use ratio forecast
February WASDE report, in part because domestic
raw stocks are in excess in Louisiana but
short for East Coast refineries. Imports from
Mexico will be adjusted lower in next week's
report, which, barring other changes, should
lower the ratio to around 14.2%.
Barb Fecso, branch chief, commodity analysis,
Farm Service Agency, USDA, who administers
the US sugar program, in a March 3
presentation
at
the
Colloquium,
said
the
USDA may have overstated sugar deliveries in
2019-20, due in large part to the way nonreporter
deliveries are residually calculated.
There is considerable debate in the industry
about sugar deliveries this year. Deliveries so
far in 2020-21 have been slow, with recent
slowing
severe
eries
weather
for
food
further
although improvement has since been noted.
The USDA in February forecast 2020-21 delivat
12,200,000 tons, down
116,000 tons from last year.
Ms. Fecso urged buyers to pull contracted
supply on time and to not delay new bookings
to avoid logistics delays should sugar demand
break open later this year as the economy
emerges from the pandemic.
Small volumes of sugar continued to be sold
on the spot market, in some cases still above
list price in the Midwest and Southeast. Spot
supplies of beet sugar were limited, but spot
cane refining capacity remained available.
Sugar futures: World raws down, domestic up
New York world raw sugar futures declined 0.15¢ to more than 1¢ a lb from a
week ago amid consolidation in light to mostly moderate trading volume. Most
prices have declined in four of the last five trading sessions. There were fairly heavy
deliveries against the March contract that expired Feb. 26 (See story on Page 3),
indicating tight nearby global supplies, but new front-month May, which was more
than 1¢ a lb below March when it expired, has since continued to decline. Prices
were up 0.65¢ to 1.03¢ a lb from five weeks ago and were up about 0.45¢ to 2.67¢
from a year ago.
Speculative funds added 17,954 lots to their net long position in world raw sugar
futures and options during the week ended Feb. 23, lifting the total net long to
162,672 lots, according to Commodity Futures Trading Commission data.
The spot May domestic raw sugar future was unchanged, but other months were
0.20¢ to about 0.70¢ a lb higher for the week. Volume was light most days but was
active on March 3, and most prices advanced further. Raw sugar futures continued
to be supported by the location of domestic raw supplies, which are in excess of
refining capacity in Louisiana but tight on either coast where refining capacity is
available. Trade sources indicated that prices may not have yet risen to the level
needed to cover freight from New Orleans to East Coast refineries, which is more
costly than importing raws from Mexico. Prices were up 0.55¢ to 0.90¢ a lb from
five weeks ago and were up 1.40¢ to 2.20¢ a lb from a year ago.
1 SoslandSWEETENERReport
Cents per lb.
May 2021
July
October
March 2022
May
July
October
Mar. 3
16.14 -1.03
15.62 -0.85
15.46 -0.65
15.66 -0.50
14.82 -0.35
14.23 -0.21
13.89 -0.15
US #16 and #11 raw sugar futures
Nearby, cents per lb.
30
28
29
26
27
24
25
22
23
20
21
18
19
16
17
14
15
12
13
10
11
9
#16
#11
Cents per lb.
May 2021
July
September
November
shipments,
January 2022
March
May
Mar. 3
29.95 0.00
29.95 0.20
30.00 0.25
29.05 0.69
28.20 0.66
28.20 0.66
28.05 0.51
#11 World raw sugar futures
1 week
- Change from -
5 weeks
1.03
0.95
0.93
0.80
0.77
0.77
0.65
1 year
2.67
2.15
1.83
1.59
1.11
0.80
0.44
March 3, 2021
F.o.b. plant,
cents per lb.
Midwest beet
Michigan beet
Pacic beet
Pacic cane
Northeast cane
South/S.E. cane
Gulf cane
Sosland Sweetener Report
Sweetener Report (1 year subscription)
provides Sosland Publishing's
unique U.S. beet and cane sugar prices,
along with in-depth commentary,
data and industry news for domestic,
North American and global sugar
markets, U.S. corn sweeteners and
related products. Regular updates on
Mexican cane sugar activity, global
production and use information and
news from private sources and government
agencies are included, along
with sugar futures prices, comments
and charts. Th e electronic report is
published on Wednesdays.
U.S. and global sweetener
news, data and prices from
Sosland Publishing Company
See SweetenerReport.com
for daily sweetener market
commentary and news
US bulk refined beet & cane sugar prices
2020-21
Mar. 3
36.50
39.50
37.00-40.00
42.00-43.00
42.00
38.50-39.50
38.00-39.50
#16 Domestic raw sugar futures
1 week
- Change from -
5 weeks
0.55
0.70
0.75
0.55
0.90
0.90
0.75
1 year
2.15
2.20
2.15
1.60
1.55
1.55
1.40
1 week
- -
- -
- -
- -
- -
- -
- -
- Change from -
1 year
NA
NA
NA
-2.00
-2.00
-5.50
-6.00
SOSLAND PUBLISHING
years
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Milling & Baking News - February 8, 2022

Table of Contents for the Digital Edition of Milling & Baking News - February 8, 2022