Milling & Baking News - April 7, 2009 - 4

Contents

April 7, 2009 Vol. 87, No. 29

SPECIAL FEATURE

NEWS Comment

Story on Page 27

Wheat leads
commodity surge as
attitudes change

Baking Hall
of Fame

10

CME launching
over-the-counter swaps

CME Group in Chicago starts trading on a
series of over-the-counter swaps for corn,
soybeans and wheat. The O.T.C. swaps are
privately negotiated contracts between buyers
and sellers of a physical contract.

Varied ideas about
soybeans, corn and wheat
prices, key in weather
Story on Page 1

DEPARTMENTS
7 Editorial
9 Business
14 Data
26 Regulatory Affairs
57, 61 Industry Activities
60 Nutrition and Health
62 Merchandising
63 Ingredient Week Trends
72 Supplier Innovations
78 Archive

14

Millers forecast soft red
crop at 408 million bus

The projected U.S. soft red winter wheat
production in 2009 would be 33% below the
2008 production, which saw record yields.
The steep decline reflects lower forecasts for
yields and acreage.

18

All-wheat planted
area may fall 7%

The projected area planted to all-wheat for
harvest in 2009 of 58.6 million acres would be a
7% drop from the year before, according to the
U.S. Department of Agriculture.

57

Grain Foods Foundation
launches bread art

The Bread Art Project allows consumers to
create a personalized piece of bread art. Money
raised will be used to combat domestic hunger.

60

C.D.C. pushes for daily
limit for sodium

More than two of three adults are in population
groups that should consume no more than
1,500 mg of sodium per day, according to a new
study from the Centers for Disease Control and
Prevention.

In a week that saw a pledge by the Group
of 20 to provide more than $1 trillion of
aid to counter the negative impacts of
the global recession, the role of wheat
in joining energy as the main cause of a
climb in commodity prices seemed unlikely.
Major indexes of commodity prices scored
advances that paralleled the enthusiasm of
equity markets in reaction to the London
conference of the leaders of the major
developed nations. It was crude oil and
wheat that led the way, purportedly in
response to a belief that such mammoth
spending will spur worldwide consumer
demand for these and other commodities.
While it's not difficult to attribute
strength in crude oil to steps being taken
to revive the global economy and to spur
trade, the direct tie to wheat is less sure,
particularly in light of the large carryover
expected at the end of 2008-09. Crop
forecasting for 2009 had to include the
new report that acreage planted to spring
wheat and durum will fall 6% and 10%,
respectively, leaving all wheat seedings
down 7% from 2008. After last year's
surge in plantings and subsequent price
declines, this cutback largely matches
trade estimates.
Starkly apparent from last week's
price swings is the way commodities are
being bullishly impacted by the mounting
perception that the worst of the economic
crisis may have passed. Whether that
happy assessment is right or wrong is less
important for the moment than realizing
that wheat market volatility is intensifying
in response even to that possibility. MBN

COMPANIES IN THIS ISSUE
Archway Cookies L.L.C.................... 10
BakeMark USA ................................ 72
Banner-Day ..................................... 72
Bimbo Bakeries USA ....................... 57
Campbell Soup Co....................1, 9, 62
CME Group ..................................... 10
The Coca-Cola Co............................ 62
ConAgra Foods, Inc. .......................... 8
Cooperstown Cookie Co.................. 62
East Balt Commissary ................30, 32
Ecce Panis, Inc. .................................. 1
8th Continent.................................. 62
4 / April 7, 2009

Milling & Baking News

Fritsch ............................................. 72
General Mills, Inc. ........................9, 62
Grupo Bimbo .................................... 8
Kashi Co. ........................................... 9
King Milling Co. ................................ 9
Kroger Co. ....................................... 57
Lance Inc......................................... 10
LeMatic, Inc..................................... 30
Mary Ann ...................................30, 32
McDonald's Corp........................30, 32
Ocean Spray's Ingredient
Technology Group ........................ 72

Quaker Oats Co. .............................. 62
Ralcorp Holdings, Inc....................... 12
Rondo, Inc. ...................................... 61
Sara Lee Corp. ..............................1, 62
Schwebel's Baking Co. ...............30, 44
Snyder's of Hanover ........................ 62
Stone Ground Flour Mills ................ 12
Tate & Lyle P.L.C. ..........................8, 72
Taylor-Made Systems, Inc. ............... 61
Unilever .......................................... 12
W.E. Long Co................................... 40

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Milling & Baking News - April 7, 2009

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