Milling & Baking News - August 28, 2007 - 36

Ingredient Week

Bakery Flour

Bookings of bakery flour were limited
last week. Prices advanced strongly.
Surging wheat futures prices kept
most bakers at bay. Chicago wheat futures prices set 11-year highs with individual contracts at all-time highs. Heavy
foreign demand for U.S. wheat continued
to be the principal market mover. The
demand and its impact on prices frustrated domestic flour users who hoped
for a harvest-related break in prices.
Flour buyers continued to fill gaps in
September coverage and make minor
additions to October-December coverage. Fourth-quarter flour coverage varied widely. Estimates ranged from 25%
to 50%, with most coverage frontloaded
into October. Cookie-cracker and specialty bakers held more extensive contract balances than the bread bakers.
There was additional basis-only coverage taken by pan bread bakers for October-December. A few booked basis only
into the first quarter of 2008. Millfeed
prices discouraged component buyers
from booking millfeed credits only.
Mills in the Southwest ran six to seven days, while the Upper Midwest and
Central states averaged six. Grind in the
Northeast and Southeast was just over
five days. Pacific Northwest mills ran 6½
days and California mills 6½ to seven. MBN

Family Flour

Sales of national and regional brands
family flour were limited last week. Carlot list prices were unchanged.

Bakery flour

The sales pace was slow to pick up
even as schools began to reopen in certain parts of the nation. Hot temperatures
were said to be discouraging home baking at a time of year that typically sees
an increase. With the key home baking
season just ahead, it was expected sales
will begin to rise in the next few weeks.
Manufacturers' promotions for the fall
soon will be under way. But promotions
were expected to be modest this year
compared with most, given the highest
wheat prices in more than a decade.
General Mills raised its carlot list prices by about 5% a few weeks ago. There
were no new announced adjustments to
list prices since.
In the market for private label flour,
buyers who had been holding back finally completed coverage through October.
Major chain grocers earlier contracted
for all of their prospective needs through
the end of the crop year. MBN

Semolina

Bookings of semolina, granulars and
durum flour were limited last week.
Prices registered wide gains. At $24.20 a
cwt, the price of semolina at Minneapolis was the second highest on record. The
semolina price was $24.45 a cwt in midJuly. The last time semolina prices were
as high as $24 a cwt was in July 1988, a
drought year.
The cash price of choice milling hard
amber durum at Minneapolis was $9.50
a bu. The run-up in the durum market
was fueled by heavy foreign demand

for U.S. supply. The European crop was
disappointing both in terms of yield and
quality, which required an increase in
imports for blending purposes. The U.S.
was the only origin with exportable supply, with Canadian carry-in stocks historically low and the Canadian harvest
just under way. The Canadian Wheat
Board offered milling durum held in
store at Thunder Bay at the equivalent of
$9.70@10, which was to say they sought
to discourage inquiry.
Pasta manufacturers' needs through
September were covered. Coverage for
October-December varied widely, with
some buyers owning all of their prospective needs through December, while others held no ownership beyond September. A suggested average for OctoberDecember ownership was 35% to 40%,
with most of the coverage front loaded
into October.
Statistics Canada reduced its estimate of 2007 Canadian durum production to 3,549,000 tonnes from 3,900,000
tonnes as the previous forecast. If the
revised projection is realized, the crop
this year would be 6.1% larger than
that of 2006, at 3,346,000 tonnes, but
would compare unfavorably with the
recent 10-year average of 4.6 million
tonnes. MBN

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

No. 1 hard amber durum

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

Track, Minneapolis
- Change from - Year
- Change from - Year $ per bu
Aug. 24 Aug. 17 Aug. 10 ago
Aug. 24 Aug. 17 Aug. 10 ago Choice milling 13% 9.50
+.60
+.95
5.45
Kansas City
cents per bu
Bakers short patent
17.80
1.10
0.90 13.15 Amber discount
10
-
-
10
Bakers standard patent 17.70
1.10
0.90 13.05 Durum discount
10@40
-
- 10@40
Second clear
7.00
-
-
6.20 Puffing premium
0
-
-
0
Third clear
5.80
-
-
5.00
Semolina
Minneapolis
Spring short patent
16.65
0.50
0.10 12.15 Bulk, f.o.b. Minneapolis, $ per cwt
- Change from - Year
Spring standard patent 16.55
0.50
0.10 12.05
Aug. 24 Aug. 17 Aug. 10
ago
High gluten
17.55
0.50
0.10 15.05
24.20
+1.45
+2.25
14.40
Whole wheat
16.55
0.50
0.10 12.05 Semolina
24.00
+1.45
+2.25
14.20
Specialty whole wheat 16.90
0.50
0.10 12.40 Granulars
23.90
+1.45
+2.25
14.10
Fancy spring clear
16.40
0.50
0.10 11.90 Flour
18.15
-1.05
-.25
11.20
First spring clear
16.30
0.50
0.10 11.80 First clear
8.55
-
-
7.30
Rye, white
11.40
-
-0.20 10.20 Second clear
Semolina - N.Y. 26.70
+1.45
+2.25
16.70
Chicago
Cracker
17.15
1.20
1.20
9.90
Nationally advertised family flour
Fancy cake
18.65
1.20
1.20 11.40
Dollars
New York
Aug. 24
Year ago
Winter/spring blend
20.20
1.10
0.90 15.55
Family patent, 2-25s papers 16.05
15.36
Spring standard patent 19.10
0.60
0.30 14.80
4-10s
13.78
13.00
High gluten
20.10
0.60
0.30 17.80
8-5s
13.96
13.36
Fancy cake
20.65
1.20
1.20 13.40
18-2s
15.66
15.66
Rye, white
13.90
-
-0.20 12.70
Self-rising
+88c per bale +80c per bale
Los Angeles
Bakers standard patent 19.70
1.05
0.95 15.65
Pastry
20.15
0.50
0.60 13.55
36 / August 28, 2007

Milling & Baking News

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

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

bakingbusiness.com / world-grain.com

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

Milling & Baking News - August 28, 2007

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