Food Business News - May 7, 2013 - 50

Ingredient Markets
Market commentary for one-week period ended May 3, 2013

Bakery Flour
Bookings of bakery flour were limited
last week despite increased interest in
third-quarter soft flour coverage. Prices
advanced.
In the markets for pan bread flour and
spring grades, most of the activity aimed
at filling gaps in May-June coverage. Minor
additions were made to third-quarter
coverage. Wide gains in wheat futures prices
seemed to argue against a more aggressive
stance, at least temporarily, and coverage for
May-June was nearly complete, providing
bakers some time to get their bearings as
they considered the need to book more
extensively into the new crop year.
Cookie-cracker and specialty bakers
were more active than the bread bakers.
One soft flour miller pointed to additional
bookings into July-September. The
increased activity developed despite
elevated basis levels for the third quarter
that in more normal conditions would have
kept soft flour users on the sidelines. But
soft flour users were concerned delays in
corn planting may result in many producers
abandoning efforts to plant corn and
planting soybeans instead. A reduction in
prospective corn production in turn would
likely increase demand for soft red winter
wheat for use as feed. Soft flour users also
were concerned about the condition of
the hard winter wheat crop. A weak hard
winter wheat crop might translate into
higher prices for all wheat.
Soft flour users also covered the futures
component of some prospective flour

— Change from — Year
May 3 Apr. 26 Apr. 19 ago
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

FOODBUSINESS NEWS

Family Flour
Sales of national and regional brands
of family flour were seasonally slow last
week. Carlot list prices were unchanged.
With home bakers providing no verve to
the market, family flour sales were limited
to meet routine demand. No spike in
activity was expected until the beginning of
the 2013-14 school year and the approach
of the fall baking season.
Most buyers of private label flour earlier
booked their needs through June or even
July but were awaiting indications of new
crop prospects before extending contract
balances into the summer and fall. FBN

flour expanded last week. Prices advanced.
The price of choice milling hard amber
durum quoted as a delivered Chicago/beyond
value remained $10 a bu. The Minneapolis
price held at $9.70 a bu. With the cash market
mostly steady, the advance in semolina prices
reflected a downward adjustment in Upper
Midwest millfeed values.
Pasta manufacturers not only filled gaps in
May-June coverage, but individual semolina
buyers also extended contract balances into
the third quarter. They faced no carry in
the market while doing so. Second-quarter
coverage was nearly complete, and with last
week’s increased activity, July-September
coverage was approaching 60%, according
to one durum miller.
The increased bookings in part reflected
concerns over the late planting of the
2013 crop in the northern Plains and the
Canadian Prairies. The U.S. Department
of Agriculture indicated no durum had
yet been planted in North Dakota and
Minnesota by April 28. One per cent of
the Montana durum crop was planted
compared with 46% last year and 21% as the
recent five-year average for the date. It was
expected weather conditions would turn
more favorable in the coming week.
Durum mill grind was good for the date,
up to six days in the case of some units. FBN

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

Semolina

$23.00

20.30
20.20
14.00
…
19.50
19.40
22.40
19.40
19.75
19.25
19.15
22.65
17.00
18.50

0.50
0.50
—
...
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.40
0.90
0.90

1.10
1.10
—
...
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.90
0.95
0.95

17.50
17.40
14.00
…
19.60
19.50
22.50
19.50
19.85
19.35
19.25
20.70

$20.00
$17.00

Track, Minneapolis
— Change from — Year
$ per bu
May 3 Apr. 26 Apr. 19 ago
Choice milling 13% 9.70
—
+.15
9.70
cents per bu
Amber discount
10.00
—
—
10.00
Durum discount 10@40
—
—
10@40
Pufﬁng premium
0
—
—
0

$14.00
M

A

N
Previous Year

F
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 —
May 3 Apr. 26 Apr. 19
Semolina
23.15 +.25
+.95
Granulars
22.95 +.25
+.95
Flour
22.85 +.25
+.95
First clear
17.50
—
—
Second clear 13.00
—
—
Semolina - N.Y. 25.85 +.25
+.95

$25.00

Year
ago
23.55
23.35
23.25
17.50
13.00
26.25

Nationally advertised family ﬂour

14.80
16.30

May 3
Family patent, 2-25s papers 24.12
4-10s
n.a.
8-5s
18.52
18-2s
20.64
Self-rising
n.a.

$21.00
$17.00
$13.00
M

A

N
Previous Year

F
Current Year

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

$22.00

Dollars

22.70
21.80
24.80
20.50
25.15

0.50
0.10
0.10
0.90
0.40

1.10
—
—
0.95
0.90

19.90
21.90
24.90
18.30
23.20

26.20
25.25
®

Bookings of semolina, granulars and durum

No. 1 hard amber durum

Bakery ﬂour
Bulk, f.o.b. car, $ per cwt

50

bookings for the third and fourth quarters
with a scattering of futures coverage taken
into the first quarter of 2014.
Increased mill grind expanded the
availability of midds, allowing prices to
weaken even in the face of an advancing
corn market.
Cash wheat markets remained mostly
firm with wheat movement still sluggish
and farmer sales lacking.
Flour grind was steady to slightly easier
last week as fumigations were planned at
several mills and some saw mechanical
downtime. Grind averaged six days plus in
the Upper Midwest, about 5½ days in the
Southwest, Central states and West coast
and five or less in the Northeast. FBN

0.50
0.50

1.10
1.10

20.75
21.25

$20.00

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

$18.00
$16.00
$14.00
$12.00
M

A

N
Previous Year

F
Current Year

May 7, 2013
Food Business News - May 7, 2013

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