Milling & Baking News - August 16, 2016 - 40

Ingredient Week X

Bakery Flour
Bookings of bakery flour were limited
last week. Prices were raised with the
widest adjustment in spring standard
patent, where a firmer cash spring wheat
basis helped give a boost.
The pace of business was slow ahead
of the release on Friday, Aug. 12, of the
U.S. Department of Agriculture's August Crop Production and World Agricultural Supply and Demand Estimates
reports, which may help set market direction for the next several weeks. At the
same time, the principal constraint on
new flour business was not the reports
but the well covered status of most bakers. Flour coverage through September
was solid, and coverage for October-December remained at about 50%. This reflected completed flour contracts. When
component positions, primarily futures
coverage, were taken into account, bakers' commitments to contracts with specific suppliers were much more extensive. Some bakers on their own account
earlier extended their futures coverage
well into the first half of 2017.
Bread bakers and millers were managing the transition to working with flour
milled from new crop supply. In many instances, this required increased utilization
of hard winter-spring blends because average protein of the hard red winter wheat
crop was so low. This was more costly
than working with flour milled exclusively from hard red winter wheat, but with
wheat prices the lowest in a decade, bakers
found the higher costs well within reason.

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

Flour coverage of cookie-cracker and
specialty bakers continued to lag that of
the bread bakers, but not by much.
Mill grind averaged six days across
much of the country. MBN

Family Flour
Sales and shipments of national and
regional brands of family flour were
seasonally sluggish, but manufacturers
were preparing for the fall baking season. Carlot list prices were unchanged.
Schools were beginning to open
for the 2016-17 school year. All public
schools should be open by or just after
Labor Day. Typically, family flour sales
begin to increase around this time.
Indications were some private label users will begin limited store shelf promotions in mid-September, which would mark
an early start to trade activation initiatives
for the fall baking season. Because of low
wheat prices, family flour promotions may
be more aggressive this year than last.
In the market for private label flour,
grocery chains, club stores, mass merchandisers and other outlets have covered all of their flour needs through the
baking season. Individual buyers have
completed coverage through March,
which would bring them through most
Easter-related demand.
Some manufacturers operated their
packaging lines seven days in order to
build inventory ahead of fall demand. MBN

durum flour expanded last week. Semolina price adjustments were minor.
The price of choice milling hard amber
durum as quoted at the Chicago gateway for delivery beyond held at $7.75 a
bu, the lowest since September 2010.
Individual pasta manufacturers added
to their October-December contract balances. Millers estimated fourth-quarter
2016 coverage expanded to about 70%.
Durum mill grind was about 5½ days.
The market expected a large crop with
strong yields. At the same time, until the
crop is in the bin, there will be concerns
over quality. There's been too much rain
across some durum areas in the northern Plains in the past few weeks. It was
hoped the areas would be warm and dry
in the next few weeks as harvesting gets
under way in North Dakota.
North Dakota durum was 70% turning color by Aug. 8 compared with 75%
a year ago and the recent five-year average of 52%, according to the U.S. Department of Agriculture. The crop was
rated 87% good to excellent, 10% fair
and 3% poor to very poor. The durum
harvest in Montana was under way
with 6% of the crop combined by Aug.
8. Crop condition ratings were stable at
51% good to excellent, 44% fair and 5%
poor to very poor. MBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$20.00

Semolina

$18.00

Bookings of semolina, granulars and

$16.00

No. 1 hard amber durum
Track, Chicago
- Change from - Year $ per bu
Aug. 12
Aug. 12 Aug. 5
July 29 ago Choice milling 13% 7.75
12.65
12.55
12.00
...

0.55
0.55
-
...

0.30
0.30
-
...

14.25 Track, Minneapolis
14.15 $ per bu
12.00 Choice milling 13% 7.45
...

14.30
14.20
17.20
14.20
14.55
14.05
13.95
16.50

1.05
1.05
1.05
1.05
1.05
1.05
1.05
0.10

1.40
1.40
1.40
1.40
1.40
1.40
1.40
0.20

13.50
13.40
16.40
13.40
13.75
13.25
13.15
22.70

10.95
12.45

0.15
0.15

-0.20
-0.20

13.95
15.45

15.05
16.45
19.45
14.45
19.00

0.55
1.00
1.00
0.15
0.10

0.30
1.30
1.30
-0.20
0.20

16.65
16.05
19.05
17.45
25.20

17.75
17.80

0.55
0.55

0.30
0.30

19.15
19.20

40 / August 16, 2016 XMilling & Baking News

- Change from - Year
Aug. 5 July 29 ago
-
-.25 10.00

$14.00
$12.00
A

F
Previous Year

M
Current Year

Spring standard, Minneapolis
-

-.25

11.70

Bulk, f.o.b. car, $ per cwt
$28.00

Semolina

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Aug. 12 Aug. 5 July 29
Semolina
19.05
+.10
-.45
Granulars
18.85
+.10
-.45
Flour
18.75
+.10
-.45
First clear
...
...
Second clear
...
...
Semolina - N.Y. 21.85
+.10
-.45

$24.00

Year
ago
24.10
23.90
23.80

$20.00
$16.00
$12.00
A

F
Previous Year

26.90

Nationally advertised family ﬂour

M
Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$18.00

Dollars
Aug. 12
Family patent, 2-25s papers 24.12
4-10s
n.a.
8-5s
18.52
18-2s
20.64
Self-rising
n.a.

Year ago
24.12
n.a.
18.52
20.64
n.a.

$16.00
$14.00
$12.00
$10.00
A

F
Previous Year

M
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - August 16, 2016

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