Milling & Baking News - January 30, 2018 - 40

Ingredient Week

Bakery Flour
Sales of bakery flour were limited last
week. Prices were mixed, and the underlying wheat markets roiled with volatility.
Interest in contract extensions was lukewarm at the week's outset and chilled
further at mid-week when Chicago and
Kansas City futures prices surged. Sales
activity was limited to routine 30-day contract extensions or a scattering of business
with the minority of bakers yet to complete
coverage for January-March. The wheat
futures advance largely eliminated interest
in further contract extensions. Specifically,
millers noted that prior to the rally, ongoing discussions were underway (if not very
serious) with customers about coverage not
only through April-June, but even through
July-September and October-December.
Holding back buyers from adding coverage to the spring months has been the
persistently high cash basis levels together with seasonally depressed millfeed
quotes. Nearby basis levels for hard winter wheat were under pressure last week,
but the deferred basis largely held steady.
Mills speculated that that if forward premiums begin moving downward, bakers
may be more inclined to fill out coverage
for the April-June quarter. Coverage for
those three months were believed to average about 30%, though a significantly
larger number of buyers may already
have booked wheat futures for that period. Absent a break in the cash basis,
millers conjectured that serious renewed
discussions about April-June coverage
may not resume until late February with

some users holding off until early March.
While in most years average forward
coverage varies somewhat between
buyers of hard winter-spring blends,
high-gluten and soft wheat flour, millers
noted that the different groups of buyers
were more closely aligned this year.
In the absence of business, buyers and
sellers once again were somewhat preoccupied by serious logistical challenges.
Trailer van availability began to become an
issue in 2017 when many drivers went to
Texas for jobs following Hurricane Harvey.
The situation worsened later with trucks
heading to Florida in the aftermath of Hurricane Irma. The diminished availability of
trailer vans worsened still further in early
2018 because of the effects of new federal
rules affecting trucking, including electronic log requirements. While concerns
were greatest for trucks that haul bagged
flour and ingredients, millers noted that
bulk shipment carriers have not been immune from availability tightness as well.
While no forced shutdowns were indicated because of the problems, the ability to
quickly find a truck to cover a last-minute
need has been seriously impaired. MBN

Family Flour
Scant business was recorded last week
in the national and regional markets for
family flour. Carlot list prices were steady.
A lull in business that invariably occurs following the key home baking season each year was fully evident in 2018.
Interest in private label contract extensions was limited, too. Indeed, a mid-

week surge in wheat futures prices effectively extinguished inquiry among retailers who have yet to cover their requirements for April-June. February-March
coverage was nearly complete, and AprilJune was thought to be about 50%. MBN

Semolina
Bookings of semolina, granulars and
durum flour were limited last week. Price
adjustments once again were limited.
Forward semolina coverage among
pasta makers remained unusually extensive. Bookings through March were
nearly complete and have been for some
time. The only nearby business being
completed for the most part was fill-in
transactions with users operating at a
heavier pace than anticipated.
The price of choice milling hard amber
durum as quoted at the Chicago gateway
for delivery beyond remained $8.60 a bu
with a Minneapolis price at $8.30. While
a week earlier the $8.60 quote appeared
somewhat shaky, the market seemed
more firm last week. The altered tenor
reflected strong wheat futures prices.
The recent weakening of the U.S. dollar
measured against foreign currencies and
an upward blip in export durum sales.
Cash trade in durum was very limited.
Farmer selling was nearly at a standstill. MBN

Bakers standard, Kansas City
Bulk, f.o.b. car, $ per cwt
$19.00
$17.00
$15.00

Bakery ﬂour

No. 1 hard amber durum

Bulk, f.o.b. car, $ per cwt
Jan. 26
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
40 / January 30, 2018

- Change from - Year
Jan. 19 Jan. 12 ago

Track, Chicago
$ per bu
Jan. 26
Choice milling 13% 8.30

- Change from - Year
Jan. 19 Jan. 12 ago
-
-.15
8.50

-
-
-
...

0.20
0.20
-
...

13.85
13.75
8.85
...

Track, Minneapolis
$ per bu

16.50
16.40
19.40
16.40
16.75
16.25
16.15
13.65

-0.35
-0.35
-0.35
-0.35
-0.35
-0.35
-0.35
-

0.35
0.35
0.35
0.35
0.35
0.35
0.35
-

15.55
15.45
18.45
15.45
15.80
15.30
15.20
14.65

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Jan. 26
Jan. 19 Jan. 12
Semolina
20.55
-
-
Granulars
20.35
-
-
Flour
20.25
-
-
First clear
15.50
-
-
Second clear
8.50
-
-
Semolina - N.Y. 23.75
-
-

11.60
13.10

0.40
0.40

0.50
0.50

12.35
13.85

17.95
19.05
22.05
15.10
16.15

-
-0.25
-0.25
0.40
-

0.20
0.60
0.60
0.50
-

16.25
17.50
20.50
15.85
17.15

20.55
20.60

-
-

0.20
0.20

18.95
19.00

Milling & Baking News

$11.00
J

J
Previous Year

15.55
15.45
8.85
...

Choice milling 13% 8.60

$13.00

O
Current Year

Spring standard, Minneapolis
-

-.15

8.20

Bulk, f.o.b. car, $ per cwt
$22.00

Semolina

$20.00

Year
ago
21.00
20.80
20.70
16.00
12.00
24.20

Nationally advertised family ﬂour

$18.00
$16.00
$14.00
$12.00
J

J
Previous Year

O
Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$15.50

Dollars
Jan. 26
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.

$13.50
$11.50
$9.50
J

J
Previous Year

O
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - January 30, 2018

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