Milling & Baking News - November 7, 2006 - 40

I N G R E D I E N T

W E E K

Bakery Flour

Bookings of bakery flour were paltry
last week. Price changes were irregular.
The primary impediment to completing additional flour bookings were wheat
futures prices. Through all their gyrations,
wheat futures prices remained sharply
above year-ago levels. While hard wheat
supplies in the U.S. and overall global
wheat supplies were tight, bakers viewed
current futures prices with skepticism.
Participation of commodity and index
funds has amplified the market effect of
supportive fundamental features, leaving the bakers and other flour buyers, as
well as millers and wheat merchants, uncertain whether current prices reflect the
value of wheat, or if prices could spike or
dive from current levels.
Most bakers owned flour coverage
through December. Most business last
week was limited to filling gaps in November and December coverage. No
new business into January-March was
indicated. January-March coverage was
estimated to be about 30%.
Individual bakers inquired about
April-June futures coverage, given wide
inverses in Chicago and Kansas City
wheat futures. Some bakers took advantage of an upturn in millfeed prices to
lock in the millfeed credit component of
prospective flour bookings into the first
quarter of 2007. There also was some basis-only booking indicated while bakers
awaited lower futures prices.
Southwest mills operated six to 6½
days last week, Upper Midwest units 5½.

Bakery flour

Family Flour

Sales of national and regional
brands of family flour were seasonally strong last week. Carlot list prices
were unchanged.
Changes in list prices of the national
and major regional brands weren't expected until after the baking season.
Private label manufacturers indicated
success in keeping lead times required to
fill orders to less than 14 days, in instances, only 10 days. This reflected increased
efficiencies in logistics but also continuation of the long-standing trend toward
lower sales of family flour on a year-toyear basis. Some manufacturers suggested this baking season, volume was running about 4% lower than a year ago.
Product promotions weren't aggressive. Occasional end-of-aisle displays
were indicated. National brands were
offered at $1.29 per 5-lb bag in supermarkets in the Upper Midwest, with some
store brands pricing a shade lower.
Packaging lines operated at full tilt.
The pace was expected to slow seasonally after Thanksgiving. MBN

Prices declined 15c a cwt.
The cash durum market was said to
have weakened, but only slightly. The
price of choice milling hard amber durum for spot-quick delivery was pegged
at $5.95 a bu, down 5c from the previous
week. But very little durum was trading
on the spot market, which made pegging
prices difficult. Volatility in spring wheat
futures in recent weeks has exerted tugs
and pulls on cash durum, with durum
market participants thinking durum
should maintain at least some premium
to hard spring wheat, as would be normal and even required in order for durum to compete with spring wheat for
acres. There remained a carry in the cash
market, but it has narrowed.
The Canadian Wheat Board continued
to offer durum at slight premiums to the
U.S. cash market. Durum buyers noted
the C.W.B. has been more approachable
with regard to contracting wheat for deferred delivery, while the spot market remained dominated by U.S. producers.
Still, pasta manufacturers were content with coverage for most extending
comfortably through December. Recent bookings have been to fill gaps in
November-December coverage. There
remained little interest in extending contract balances beyond December. MBN

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

Semolina

Bookings of semolina, granulars
and durum flour were light last week.

No. 1 hard amber durum

Bulk, f.o.b. car, $ per cwt
Nov. 3
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

Central states mills averaged five days,
though some ran six. Northeast mills
averaged six days, although some units
struggled to reach five. Southeast grind
was close to six, and California and Pacific Northwest mills ran close to 6½. MBN

13.90
13.80
6.20
5.00

Track, Minneapolis
- Change from - Year $ per bu
Nov. 3
Oct. 27 Oct. 20 ago Choice milling 13% 5.95
cents per bu
-0.20
-0.10 12.30 Amber discount
10
-0.20
-0.10 12.20 Durum discount
10@40
-
-
6.50 Puffing premium
0
-
-
5.50

- Change from - Year
Oct. 27 Oct. 20 ago
-.05
+.10
4.70
-
-
-

-
-
-

1
10@40
0

Spring standard, Minneapolis
Bulk, f.o.b. car, $ per cwt

Semolina

13.30
13.20
16.20
13.20
13.55
13.05
12.95
9.50

0.10
0.10
0.10
0.10
0.10
0.10
0.10
-0.10

0.30
0.30
0.30
0.30
0.30
0.30
0.30
-0.25

13.55
13.45
16.45
13.45
13.80
13.30
13.20
9.85

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Nov. 3
Oct. 27 Oct. 20
Semolina
15.40
-.15
+.25
Granulars
15.20
-.15
+.25
Flour
15.10
-.15
+.25
First clear
11.85
-.15
+.25
Second clear
7.30
-
-
Semolina - N.Y. 17.70
-.15
+.25

12.65
14.15

-0.10
-0.10

0.05
0.05

9.95
11.45

Nationally advertised family flour

16.30
15.40
18.40
16.15
12.00

-0.20
-
-
-0.10
-0.10

-0.10
0.25
0.25
0.05
-0.25

14.70
15.80
18.80
13.45
12.35

15.90
14.35

-0.10
-0.25

-0.45
-0.40

12.95
12.45

40 / Milling & Baking News, November 7, 2006

Year
ago
12.75
12.55
12.45
9.70
6.50
15.05

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

Dollars
Nov. 3
Family patent, 2-25s papers 15.36
4-10s
13.00
8-5s
13.36
18-2s
15.66
Self-rising
+88c per bale

Year ago
15.36
13.00
13.36
15.66
+56c per bale

bakingbusiness.com/world-grain.com

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

Milling & Baking News - November 7, 2006

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