Milling & Baking News - June 22, 2004 - 38

I N G R E D I E N T

W E E K

gia, 80% in Mississippi, 92% in Louisiana,
61% in Arkansas, 13% in Missouri, 8% in
Illinois, 6% in Indiana, 10% in Kentucky
and 25% in Tennessee. Increased incidence of high vomitoxin levels, scab and
mold were reported in several areas because of excessive wet conditions raised
quality concerns. Although harvest of
white wheat in Michigan had not started,
similar quality concerns existed.
DURUM. The price of choice milling
hard amber durum at Minneapolis was
unchanged at $5.15@5.20 a bu, although
lightly tested as trade was thin all week.
Despite the quiet market, mills continued
to run five to six days.
Wet conditions in North Dakota and
Montana were becoming a concern as
fieldwork was further delayed. As of June
13, seeding was 84% complete compared
with 99% last year in North Dakota and
83% in Montana (95%). Emergence was
77% in North Dakota (91%) and 59% in
Montana (79%). Rated good to excellent
was 68% of the crop in North Dakota (26%
fair) and 72% in Montana (22% fair). MBN

Millfeed
Pricing across much of the country
demonstrated a confusing but distinctly
downward trend last week. The Southwest market again was the bellwether, although Buffalo and adjacent eastern areas closely matched the Southwest with
respect to losses. Central states evidenced some slight softness before rallying at weekend. California sagged

slightly with the Pacific Northwest unchanged. Upper Midwest was mixed.
A number of markets encountered seasonal changes in demand spurring mills
and merchandisers to look for new outlets. Because of the shifts in formula business, Southwest mixers were canceling
orders at the start of the week prompting
a flurry of activity. In addition, the Southwest was the scene of aggressive selling
after midweek when prices plunged
$3@4 a ton within a few hours. Market
subsequently recovered part of this loss
but the action underscored the vulnerability of the current market. Eastern
prices also sagged with most participants
adopting an extremely cautious stance.
California became chaotic. While individual traders professed to see increased
stability, wide swings in pricing there
underscored an ongoing imbalance between supplies and demand. Local feed
manufacturers and feeders had eliminated millrun from rations during recent
peak prices. Lower numbers appeared to
reverse the situation, but merchandisers
became aggressive sellers toward weekend. Some also continued to report
nearby tightness as trades ranged from
$85 to $100 within a single day.
Flour mill grind again was brisk and a
number of mills operated six to seven
days. Weekend grind again exerted pressure at a number of points.
Formula business was seasonal. Lower
levels in some markets suggested integrated hog feeders might become buyers
over the near term.

Bulk Middlings

30-day shipment, Kansas City, $ per ton

30-day shipment, Chicago West, $ per ton

Wheat germ was down $10 a ton. Supplies were more plentiful at some points,
although users continued to press for
specific material.
Bulk middlings at $56 a ton in Kansas
City and $75 in Minneapolis compared
with yellow corn at $94 K.C., and sorghum at $89. Corn gluten feed was up $2
at $70 ton. Dehydrated alfalfa was steady
at $119 a ton. MBN

Semolina
Bookings of semolina, granulars and
durum flour were quiet last week. Prices
were slightly weaker.
Most pasta manufacturers appeared
comfortable with coverage extending
through mid July. Some fill-in coverage
through early August was noted, but
there was no interest in forward booking.
The price of choice milling hard amber
durum held at $5.15 to $5.20 a bu, although it was thinly tested due to a lack
of trading. Continued wet conditions began to create concern about the 2004 crop
in North Dakota.
Mill grind was strong at five to six
days. Pipeline supply was adequate. MBN

Family Flour
Sales of national and regional brands
of family flour were seasonally slow last
week. Carlot list prices were unchanged.
Orders against contracts also slowed
last week, as with other types of flour, although grocery chains have begun to fill
warehouses in anticipation of fall baking
season consumer demand. Flour packaging lines ran five to six days last week, but
were expected to pick up again after Independence Day and even more in lasthalf July and August. MBN

Bakery Shortening

Bulk Middlings
June 18 close, $ per ton, for following shipping periods
June
July
July-Sep.
Kansas City
56 @ 61 62 @ 66 67 @ 71
Chicago West
86 @ 92 86 @ 92 89 @ 92
Buffalo
58 @ 63 58 @ 63 63 @ 68
South. California 92 @ 97 92 @ 96 92 @ 94
North. California 92 @ 97 92 @ 96 92 @ 94
Pacific Northwest 73 @ 80 73 @ 80 75 @ 82
California and Pacific Northwest prices, delivered rail

38 / Milling & Baking News, June 22, 2004

Nationally Advertised Family Flour
Dollars
Oct-Dec
80 @ 83
91 @ 95
75 @ 80
96 @ 99
96 @ 99
78 @ 83

8-5s

June 18
12.16

Year ago
12.16

Semolina
f.o.b. Minneapolis, $ per cwt
Week's
Year
June 18
change
ago
13.35 @ 13.45 -.05
14.00@ 14.10

Bookings of bakery shortening were
limited last week. Prices of most ingredients declined along with soybean oil futures.
Soybean oil futures prices started the
week higher, following a sharp gain in
soybean futures after the National Oilseed Processors Association report
showed May soybean crush at
109,916,000 bus, up 4,543,000 bus from
April and above analysts' expectations.
Soybean oil stocks, at 1,193,665,000 lbs for
May, also were above analysts' expectations but below April and year-ago numbers. But futures slid as the week progressed. While the NOPA report indicated already tight old crop soybean
stocks were being drawn down faster
than expected, much of the concern
about "running out" of soybeans to crush
before new crop harvest has subsided.
Ideas that sufficient product will be imported from South America, along with
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Milling & Baking News - June 22, 2004

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