Milling & Baking News - February 15, 2005 - 37

I N G R E D I E N T

W E E K

were 25c over March. Michigan bids on
white wheat with 1 p.p.m. vomitoxin or
less were 80c over Chicago March.
Soft wheat millers in the Central states
have had to "import" wheat from as far
west as Idaho to compensate for tight
regional milling supply; western white
at Chicago was offered at about 150c
over March.
Illinois wheat at the end of January
was rated 49% good to excellent, 32% fair,
with some low-lying areas suffering from
standing water from recent heavy rains.
While there have been no L.D.P.s on
soft red winter wheat this marketing year,
Central states producers have collected
$1,118 million in L.D.P.s on fall crops.
DURUM. The price of choice milling
hard amber durum at Minneapolis
held at $5.25 a bu last week. Some mills
forced to scramble for supply because
of rail logistical problems sometimes
had to pay more. But most mills bid
$5.25 or even less. The Canadian Wheat
Board continued to offer durum at the
equivalent of $5.35 a bu, Thunder Bay.
Durum mill grind was a solid five to
six days last week. One miller said he
would have run his plant seven days but
he hadn't ordered enough airslide cars
to move the extra semolina. MBN

 Millfeed

Prices in most regions continued to
decline last week, with losses ranging
from $4@7 a ton through March in all areas

except California. Discounts up to $10 a ton
were reported on weekend production.
While some traders predicted prices were
at or near bottom, most held out little hope
for any significant rebound soon because
of large stocks of low-priced competitive
feeds and flat prices in forward positions.
Millfeed prices were at multi-year
lows in most markets. Nearby prices in
Minneapolis were the lowest since July
1999, Buffalo since March 2001, Central
states May 2001, California July 2001,
Pacific Northwest September 2001 and
Kansas City July 2004. And every market
except the Pacific Northwest was at least
$30 a ton under year-ago prices.
By midweek, flour mills were accepting
bids below the market to clear millfeed to
keep flour mills running. Trades in the midto low-$20-a-ton range were reported in
several regions but not confirmed. Heavierthan-expected flour mill grind for a second
consecutive week kept millfeed supplies
growing. Ideas were that early-month
flour export business prompted the heavier
grind. While grind decreased slightly last
week, there was talk of weekend discounts
from $2@10 a ton in some regions.
Meanwhile, demand continued to
languish. Some called it the "February
swoon," when millfeed on hand is used
up as spring approaches. Additionally, a
generally mild winter in many areas has
kept a lid on demand. In the West, grass
already was beginning to green in some
areas, signaling even less demand soon.
Some saw a glimmer of hope from

Bulk Middlings

Bulk Middlings

30-day shipment, Kansas City, $ per ton

30-day shipment, Chicago West, $ per ton

Bulk Middlings

Nationally Advertised Family Flour

Feb. 11 close, $ per ton, for following shipping periods
February March
April-June July-Sep.
Kansas City
45 @ 48 45 @ 48 41 @ 44 44 @ 47
Chicago West
49 @ 52 50 @ 55 50 @ 55 59 @ 64
Buffalo
30 @ 35 30 @ 35 30 @ 35 30 @ 35
South. California 63 @ 67 64 @ 68 63 @ 67 62 @ 66
North. California 63 @ 67 64 @ 68 63 @ 67 62 @ 66
Pacific Northwest 60 @ 65 60 @ 65 65 @ 70 65 @ 70
California and Pacific Northwest prices, delivered rail

Dollars

38 / Milling & Baking News, February 15, 2005

8-5s

Feb. 11
13.36

Year ago
12.16

Semolina
f.o.b. Minneapolis, $ per cwt
Week's
Year
Feb. 11
change
ago
14.15 @ 14.25
+.15
13.40 @ 13.50

higher corn futures prices, which
responded to strong export sales. Others
noted that millfeed was about half the
price of corn in most areas, which also
could spur demand.
Wheat germ declined another $15 a
ton, down $50 in three weeks.
Bulk middlings at $45 a ton in Kansas
City and $36 in Minneapolis compared
with yellow corn at $64.25 and sorghum
at $61.75 a ton K.C. Corn gluten feed
gained $5, to $60 a ton. Dehydrated
alfalfa held at $128 a ton. MBN

 Semolina

Bookings of semolina, granulars and
durum flour were light last week. Prices
registered moderate advances.
Most pasta makers already had covered
most, if not all, of their needs through
March. There was limited fill-in business
to be done through that month, and more
of that business was completed last week.
Pasta makers remained reluctant to book
beyond the first quarter.
The price of choice milling hard amber
durum at Minneapolis was pegged at about
$5.25 a bu, unchanged from the previous
week but up 20c a bu from a month ago.
The recent rise was attributed to rail
logistical problems that have forced some
smaller mills to scramble for supply. Most
larger mills have been able to stand aside.
The Canadian Wheat Board continued to
offer durum at $5.35 a bu, Thunder Bay.
Durum mill grind remained fairly
strong, with some units running up to
six days last week. MBN

 Family Flour

Sales of national and regional brands
of family flour were seasonally sluggish
last week. There were no changes in
carlot list prices.
Sales and shipments were expected
to pick up shortly before Easter, an
occasion for increased home baking. But
these failed to develop last week.
Recent market data for the category
indicated that in the last nine months,
sales volume was off about 4% from the
same span a year earlier. This seemed
to mark a return to the rate of decline
normal for the category. In the previous
marketing year, category volume had
declined 7% from 2002-03.
It was hoped a larger wheat crop
this year could translate into lower
wheat prices, improved margins and
more opportunity for stronger product
promotion initiatives during the fall
baking season. MBN

 Bakery Shortening

Bookings of bakery shortening were light
last week. Price changes were mixed.

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Milling & Baking News - February 15, 2005

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