Food Business News - April 9, 2013 - 57

Market commentary for one-week period ended April 5, 2013

Bakery Flour
Bookings of bakery flour were steady
last week. Price changes were mixed with
pan bread flour prices higher but soft flour
and spring standard patent prices lower.
Most of the week’s business was
completed before a midweek price bounce
in wheat futures, which pushed buyers to
the sidelines. Bakers could not help but to
be uncertain whether prices will advance
or decline from current levels as they tried
to develop approaches to booking flour for
the third and fourth quarters. Most have
covered nearly all of their April-June flour
needs, giving them some time to develop a
better understanding of where the market
may be headed in the next several weeks.
Spring means weather markets, and
weather markets often are volatile. While
old crop wheat stocks were ample, they
were not so heavy the market could ignore
the possibility of increased export demand.
The spike in wheat prices at midweek was
partly attributed to ideas China again was
buying U.S. wheat cargoes. The subsequent
decline in wheat futures reflected the fact
such purchases were not confirmed.
Bakers covered outstanding contract
components last week to complete
transactions that lifted flat coverage for
April-June to around 80% with some millers
estimating coverage up to 85%.
Bakers’ commitment to July-September
flour contracts (where bakers covered at
least one component of prospective flour
contracts for the quarter but must cover
the remaining component(s) to complete

Bakery ﬂour

Family Flour
Sales of national and regional brands
of family flour were in the doldrums last
week. Carlot list prices were unchanged.
Demand reverted to the routine after
Easter weekend. It would be typical for
demand to remain subdued during the
rest of the spring and most of the summer.
Manufacturers’ operations will intensify
in mid-summer as pre-packing for the fall
baking season begins.
There was evidence of occasional
promotions of family flour as grocers’
cleared shelves of bags left over from
Easter demand.
In the market for private label flour, most
buyers earlier covered their flour needs
through old crop or even through July.
Coverage beyond July was lacking as the
market awaited developments during the
growing season. FBN

Semolina
Bookings of semolina, granulars and
durum flour expanded last week. Prices
were mostly steady.
The cash price of choice milling hard
amber durum quoted as delivered Chicago/
beyond values remained $9.85 a bu. The
Minneapolis price held at $9.55 a bu.

Rail logistics across the northern Plains
posed some problems, but most mills held
comfortable inventories and didn’t press
for much spot supply.
Pasta manufacturers “tidied up” AprilJune contract balances, according to one
miller. Most of his trade for the second
quarter of 2013 was covered. Estimated
April-June semolina coverage was between
90% and 95%. Coverage into the third
quarter remained lean, and was estimated
at about 20% with pasta makers awaiting
spring planting and indications of crop
production prospects.
The U.S. Department of Agriculture, on the
basis of desert plantings of durum earlier this
year and a survey of growers’ spring planting
intentions across the northern Plains, forecast
area planted to durum for harvest this year
at 1,751,000 acres, down 18% from 2,123,000
acres in 2012. The U.S.D.A. forecast was met
with skepticism from many durum merchants
and millers, many of whom expected acreage
equal to or only slightly below 2012. It was
noted the U.S.D.A. forecast was based on
surveys of producers conducted during the
first two weeks of March, and there was time
for growers to change their minds, especially
in view of the recent downturn in corn prices
that may turn some growers away from that
crop and toward durum. FBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$26.00
$23.00
$20.00

No. 1 hard amber durum

Bulk, f.o.b. car, $ per cwt
Apr. 5
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

the contracts) was estimated at 40%.
Mill grind was five days in the Southwest,
5½ to six days in the Upper Midwest, 4½ to
five days in the Central states and 3½ days
in the Northeast. FBN

— Change from — Year
Mar. 29 Mar. 22 ago

18.60
18.50
14.00
…

0.15 -0.45
0.15 -0.45
—
—
...
...

19.30
19.20
14.00
…

17.90
17.80
20.80
17.80
18.15
17.65
17.55
21.15

-0.45
-0.45
-0.45
-0.45
-0.45
-0.45
-0.45
-0.35

-1.10
-1.10
-1.10
-1.10
-1.10
-1.10
-1.10
-0.35

22.60
22.50
25.50
22.50
22.85
22.35
22.25
21.05

15.35
16.85

—
—

-1.00
-1.00

15.75
17.25

$17.00

Track, Minneapolis
— Change from — Year
$ per bu
Apr. 5 Mar. 29 Mar. 22 ago
Choice milling 13% 9.55
—
—
9.95
cents per bu
Amber discount
10.00
—
—
10.00
Durum discount 10@40
—
—
10@40
Pufﬁng premium
0
—
—
0

$14.00
A

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O
Previous Year

Current Year

Spring standard, Minneapolis
Bulk, f.o.b. car, $ per cwt
$33.00
$29.00

Semolina
Bulk, f.o.b. Minneapolis, $ per cwt
— Change from —
Apr. 5 Mar. 29 Mar. 22
Semolina
21.80
-.25
-.25
Granulars
21.60
-.25
-.25
Flour
21.50
-.25
-.25
First clear
17.50
—
—
Second clear 13.00
—
—
Semolina - N.Y. 24.50
-.25
-.25

$25.00

Year
ago
24.45
24.25
24.15
17.50
13.00
27.15

Nationally advertised family ﬂour

$21.00
$17.00
$13.00
A

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Previous Year

Current Year

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

$22.00

Dollars
21.00
21.05
24.05
18.85
23.65

0.15
—
—
—
-0.35

-0.45
-0.60
-0.60
-1.00
-0.35

21.70
24.90
27.90
19.25
23.55

24.50
23.55

0.15
0.15

-0.45
-0.85

21.20
21.15

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

$20.00

Year ago
24.12
n.a.
18.62
20.64
n.a.

$18.00
$16.00
$14.00
$12.00
A

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Previous Year

April 9, 2013

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Current Year

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Food Business News - April 9, 2013

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