Milling & Baking News - August 10, 2004 - 69

I N G R E D I E N T

W E E K

porary free storage offered by some country elevators or stored wheat on farm.
Spring wheat condition in the six key
states was 65% good to excellent, compared with 70% a week earlier and 57% at
the same time last year.
SOFT RED. Mill bids on soft red winter
wheat last week remained strong. Some
mills posted standard bids for soft red
winter wheat but paid wide edges above
those bids to secure supply of wheat with
low or no vomitoxin. For instance, some
Michigan mills bid 35c under September
for soft white wheat. But if a grower were
to deliver wheat with 1 part per million
vomitoxin or less, the mills likely would
pay up to 50c over. Other mills bid on the
basis of maximum vomitoxin content
and minimum falling number. Regardless of how mills bid on soft red, the cash
market remained exceptionally strong
and was expected to remain so for the
marketing year.
In Kansas City, No. 1 soft red bids held
at 7@32c over K.C. September. Gulf bids
on nearby moved up 1c, to 35c over Chicago September. Egypt bought 60,000
tonnes of soft red winter. St. Louis mill
bids declined 3c a bu, to 33c over Chicago
September for less than 2 p.p.m. vomitoxin
and minimum 300 falling number. The
Chicago mill basis held at 40c over Chicago September. Mill bids in Toledo held
at 3c under Chicago September. Elevator
bids were 9c under Sept. The Cincinnati
mill basis declined 5c, to Chicago September price. Elevator bids were 23c under

Sept. Michigan white wheat with 1 p.p.m.
vomitoxin or less held at about 50c over
Chicago September. The wheat harvest in
Michigan was 89% done on Aug. 1.
DURUM. The price of choice milling
hard amber durum at Minneapolis held
at $4.90@5 a bu. Mill demand was just
steady, with most needs filled by durum
already purchased under contract.
The harvest was just under way in
North Dakota, with 1% combined as of
Aug. 1. Crop progress in the state pushed
ahead of the recent five-year average for
first time this season, with 31% turning
color versus 27% as the average. Rated
good to excellent was 55% of the crop
compared with 65% the week before.
Montana durum progress still lagged
average because of late planting. Rated
good to excellent was 44% of the crop. MBN

Millfeed
Strong nearby demand, slightly lighter
grind and modestly higher corn futures
prices supported millfeed prices in all regions except the West coast last week.
Gains of $5@6 a ton for spot prices occurred in the Southwest, Upper Midwest,
Chicago and Southeast last week. Buffalo
and the Central states held about steady.
Weakness prevailed in California and the
Pacific Northwest. For deferred months,
gains were more modest, and even some
weakness was evident, as feed manufacturers were reluctant to buy too far ahead
with the likelihood of a record corn crop
in the fall.

Bulk Middlings

Bulk Middlings

30-day shipment, Kansas City, $ per ton

30-day shipment, Chicago West, $ per ton

Good nearby demand in the Southwest,
Upper Midwest, Central states and Southeast continued to surprise many traders,
who expected greener-than-normal pastures to provide cattle feed longer than in
recent summers. But creep feeding already
had begun, and millfeed, considered a
good value at current price levels, was
solidly included in feed formulations in
those areas.
Interest also was sparked by reduced
flour mill operations in some areas last
week. In the Kansas City area, at least two
mills that had run the previous weekend
were down in the most recent weekend.
And added supply from the reopening of
another mill in the area appeared to be
readily taken by mixers and resellers.
Prices in California remained on the
defensive as demand was lacking.
Wheat germ prices held steady.
Bulk middlings at $61 a ton in Kansas
City and $66 in Minneapolis compared
with yellow corn at $76.50 K.C., and sorghum at $75. Corn gluten feed was $1
lower at $67 a ton. Dehydrated alfalfa
was steady at $119 a ton. MBN

Semolina
Bookings of semolina, granulars and
durum flour were limited last week. Price
changes were narrow.
Individual pasta makers extended
contract balances by a couple of weeks or
a month. But there was no rush in activity.
Prices were relatively weak, and there
were no indications of an upswing occurring anytime soon. The market stability
allowed pasta makers to add coverage at
their own pace.
The cash price of choice milling hard
amber durum at Minneapolis remained
$4.90@5 a bu, with the upper end of the
range a bit shaky. MBN

Family Flour

Bulk Middlings
Aug. 6 close, $ per ton, for following shipping periods
August September October
Kansas City
61 @ 64 62 @ 66 62 @ 66
Chicago West
79 @ 84 79 @ 84 77 @ 82
Buffalo
56 @ 62 56 @ 62 57 @ 62
South. California 76 @ 80 74 @ 79 76 @ 80
North. California 76 @ 80 74 @ 79 76 @ 80
Pacific Northwest 75 @ 79 75 @ 79 79 @ 83
California and Pacific Northwest prices, delivered rail

Nationally Advertised Family Flour
Dollars
Oct-Dec
69 @ 73
77 @ 82
61 @ 67
79 @ 84
79 @ 84
82 @ 86

8-5s

Aug. 6
13.36

Year ago
12.16

Semolina
f.o.b. Minneapolis, $ per cwt
Week's
Year
Aug. 6
change
ago
13.00 @ 13.10 -.10
14.05@ 14.15

Sales of national and regional brands
of family flour were seasonally light last
week. There were no changes in carlot list
prices reported.
Orders have slackened somewhat from
the previous few weeks. The bulk of initial
inventory-building for the fall baking season seemed to have been accomplished.
At the same time, the pace of shipments
was expected to pick up again in a couple
of weeks, partly in response to expanded
demand that typically occurs with the start
of a new school year. But last week, lead
times required by manufacturers to fill
orders narrowed to about 10 days from 14.
Private label manufacturers indicated
that most of their trade had contracted for
all of their needs through December. MBN

Bakery Shortening
Bookings of bakery shortening were

70 / Milling & Baking News, August 10, 2004

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