Milling & Baking News - March 16, 2004 - 66

I N G R E D I E N T

W E E K

start this spring.
Farmer selling remained light, with
chronically bullish farmers chagrined at
recent downward trend in prices. Road
restrictions were in effect in many areas,
but there was a lot of wheat already in offfarm storage and able to be moved
should demand expand.
SOFT RED. Mixed changes were registered in mill bids on soft red winter wheat
last week. But most points indicated bids
unchanged to a bit lower from the week
before. The cash soft red market has been
fairly stable during the past several
weeks as early worst-case stocks scenarios have been set aside, partly because
of timely imports from Canada.
In Kansas City, No. 1 soft red bids were
unchanged at 6@31c over K.C. May. Gulf
bids on nearby declined 2c, to 43c over
Chicago May, after Egypt bought U.S.
hard winter wheat and Australian wheat.
St. Louis mill bids for nearby held at 40c
over Chicago May for less than 2 p.p.m.
vomitoxin and minimum 300 falling
number. The Chicago mill basis declined
1c, to 33c over Chicago May. Mill bids in
Toledo for nearby were 2c over Chicago
May; new crop, 3c under July. Elevator
bids were 8c under May; new crop, 8c
under July. The Cincinnati mill basis advanced 5c, to 10c over Chicago May; new
crop, 2c under July. Elevator bids were
May price; new crop, 8c under July.
Michigan white wheat with 1 p.p.m.
vomitoxin or less was bid at 5c over Chicago May; offers at 25c over.

DURUM. The price of choice milling
hard amber durum at Minneapolis held
at $5.30 a bu last week. Slight improvement in rail shipments of durum has
taken some of the pressure off the spot
market. The price of durum at Minneapolis has advanced 25c a bu from the beginning of January. It topped off at $5.35 a bu
before pulling back to the current level.
Price moves in the durum market have
been tame when compared with those in
the markets for the other wheat classes.
Durum mill grind was 5½ to six days
last week. But mills seemed to be comfortable with current pipelines.
Northern Plains farmer selling of durum remained very light. MBN

Millfeed
Moderate declines occurred in most
major markets last week, with some important exceptions. Midwest numbers
were down almost on a day-to-day basis.
Major exceptions were the eastern markets, which pursued a rather volatile
course to end somewhat higher. West
coast numbers were unchanged to lower
but displayed increased stability toward
the end of the week.
Bearish factors included narrowing
outlets for millfeed in some of the key
markets as more cattle moved to pasture.
Declines in corn and the soybean complex
as well as for other competitive items also
prodded the market to look for lower pricing. Lower levels in effect for April forward also tended to have a downward
impact on the nearby positions.

Bulk Middlings

30-day shipment, Kansas City, $ per ton

30-day shipment, Chicago West, $ per ton

Bulk Middlings

Nationally Advertised Family Flour

March 12 close, $ per ton, for following shipping periods
March
April
April-June
Kansas City
80 @ 82 77 @ 78 75 @ 77
Chicago West
89 @ 92 87 @ 92 87 @ 92
Buffalo
72 @ 77 68 @ 74 68 @ 74
South. California 94 @ 98 90 @ 94 87 @ 91
North. California 94 @ 98 90 @ 94 87 @ 91
Pacific Northwest 94 @ 99 94 @ 99 88 @ 95

Dollars
July-Sep.
76 @ 79
87 @ 92
68 @ 73
84 @ 87
84 @ 87
85 @ 92

8-5s

March 12
12.16

Year ago
12.16

Semolina
f.o.b. Minneapolis, $ per cwt
Week's
March 12

Year
change ago

California and Pacific Northwest prices, delivered rail
13.55 @ 13.65

66 / Milling & Baking News, March 16, 2004

14.65@ 14.75

An additional contributing development was a slight pickup in grind at some
points. While many mills continued to
operate no better than five to 5½ days,
some ran six to seven. At the same time,
milling overall was not doing as well as
earlier expected. This, in turn, spurred
some mixers and jobbers to reach out
ahead, engaging in insurance buying
should flour grind continue to lag below
initial projections.
In the Central states, April-September
trucks changed hands at $70@72 f.o.b.
Los Angeles trucks for April-June sold at
$85@86 f.o.b.
Also providing an offset at least in the
truck market were earlier commitments
to various hog feeding operations. Coming on top of the disappointing mill
grind, these contracts tended to stiffen a
number of the markets, particularly those
in the East.
Wheat germ moved irregularly on a
day-to-day basis but ended the week unchanged. Some in the trade reported active interest that could not be covered,
while some mills indicated they were
having trouble moving their production.
Bulk middlings at $80 a ton in Kansas
City and $79 in Minneapolis compared
with yellow corn at $104 K.C., and sorghum at $102. Corn gluten feed was $9
lower at $84 a ton. Dehydrated alfalfa
was unchanged at $119 a ton.MBN

Semolina
Bookings of semolina, granulars and
durum flour were limited last week. Price
changes were narrow.
Pasta makers have been buying
steadily but in small volumes. Most now
were covered through April, with a few
holding ownership in May and even
June. There was no sense of urgency in
the marketplace. Even when transport
delays pulled up the market for choice
milling hard amber durum in Minneapolis, prices advanced only about 20c a bu,
and they since have drifted a bit lower
again. Pasta makers have kept contract
balances extended about 45 days or so,
and there seemed to be little cause to be
more aggressive.
Durum mill running times ranged
from 5½ to six days last week.MBN

Family Flour
Sales of national and regional brands
of family flour expanded last week. There
were no changes in carlot list prices.
Orders and shipments picked up as
grocers and other outlets began to build
inventories ahead of Easter, a holiday
that encourages an increase in home baking. Shipments were particularly brisk to
grocery outlets on the West coast that recently had resolved a labor dispute.
bakingbusiness.com / world-grain.com

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

Milling & Baking News - March 16, 2004

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