Milling & Baking News - July 3, 2018 - 48

Ingredient Week

Bakery Flour
Bookings of bakery flour continued at
a fairly crisp pace last week following the
broad expansion in activity seen a week
earlier. Prices were lowered largely in response to the ongoing break in wheat futures for hard winter and spring grades
but were raised for soft flour with only
minor changes in soft red winter futures.
Tumbling wheat futures early last
week continued to encourage mediumsize and smaller baking companies,
some of which had failed to take extensive flour or even futures coverage
earlier, to aggressively fill gaps in thirdquarter coverage. One miller said the
slump in wheat futures was a gift to such
bakers. Some still held back to see how
much lower futures might decline.
The advancing cash hard red winter
wheat basis gave pause to some pan
bread bakers, but millers pointed out the
effect of the escalating cash wheat basis
on flour pricing was more than offset by
that of declining wheat futures. Millers
also pointed out cash wheat premiums
may remain firm to overcome farmer
and elevator reluctance to sell wheat
given the tailspin in futures.
Bread bakers have covered 60% to 75%
of their flour needs for July-September,
according to one miller, who voiced some
surprise coverage wasn't even more extensive given the futures slump. Cookiecracker and specialty bakers held slightly
less extensive coverage of soft flour.
Specialty bread and other spring grade
users held more extensive coverage,

estimated at 85% to 90% for July-September. Unlike the cash hard red winter wheat
basis, spring wheat premiums have held at
levels more in line with five-year averages.
Bread flour coverage for October-December was estimated at about 20%.
Mill grind ranged from five to six days
in most regions last week. MBN

Family Flour
Sales of national and regional brands
of family flour were seasonally sluggish.
Carlot list prices were unchanged.
Home bakers weren't expected to provide a boost to sales until the approach
of the 2018-19 school year and the key
fall baking season.
Manufacturers were preparing for the
baking season. Those with warehousing
capacity began to package supply and
build inventory for the fall.
With the Kansas wheat harvest past
the halfway mark, buyers of private
label flour began to extend coverage.
Nearly all private label buyers have covered their flour needs through September, and October-December coverage
was estimated at about 20%. MBN

Semolina
Bookings of semolina, granulars and
durum flour continued at a fairly active
pace last week. Price adjustments were
minor, reflecting changes in millfeed.
The price of choice milling hard amber
durum as quoted at the Chicago rail gateway for delivery beyond held at $8.10 a
bu. The Minneapolis price was $7.80 a bu.

The spot cash durum market was thin
to nonexistent, with most durum being
shipped against contract. Mills were
buying durum for August and September. This they were able to do at price
levels not far above the spot market. The
premiums asked for deferred shipment
have narrowed as confidence in the new
crop's prospects has risen.
With third-quarter semolina coverage
nearly completed and fourth-quarter coverage approaching 90%, individual pasta
manufacturers last week began to extend
contract balances into January-March 2019.
Durum mill grind averaged about
six days, and downtime was scheduled
around Independence Day.
The U.S. Department of Agriculture
rated the condition of the North Dakota
durum crop as of June 24 at 77% good
to excellent (75% a week earlier), 20%
fair and 3% poor. Montana's durum was
rated 54% good to excellent (50% a week
earlier), 41% fair and 5% poor.
The U.S.D.A. in its annual Acreage report issued June 29 indicated 1,887,000
acres were planted to durum for harvest
this year. The estimate was 6% below the
forecast contained in the Prospective Plantings report issued on March 29 and was
down 420,000 acres, or 18%, from 2,307
million acres planted in 2017. 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
- Change from - Year
June 29 June 22 June 15 ago
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
48 / July 3, 2018

Track, Chicago
- Change from - Year
$ per bu
June 29 June 22 June 15 ago
Choice milling 13% 8.10
-
-
9.50

-0.35
-0.35
-
...

-0.50
-0.50
-
...

18.05
17.95
8.85
...

Track, Minneapolis
$ per bu

16.10
16.00
19.00
16.00
16.35
15.85
15.75
14.60

-0.30
-0.30
-0.30
-0.30
-0.30
-0.30
-0.30
-0.05

-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
-0.50
0.05

20.50
20.40
23.40
20.40
20.75
20.25
20.15
14.60

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
June 29 June 22 June 15
Semolina
19.95
-.05
+.05
Granulars
19.75
-.05
+.05
Flour
19.65
-.05
+.05
First clear
15.50
-
-
Second clear
8.50
-
-
Semolina - N.Y. 23.15
-.05
+.05

13.95
15.45

0.20
0.20

0.25
0.25

14.00
15.50

18.60
18.30
21.30
17.45
17.10

-0.35
-0.25
-0.25
0.20
-0.05

-0.50
-0.50
-0.50
0.25
0.05

20.45
22.75
25.75
17.50
17.10

21.00
21.05

-0.35
-0.35

-0.50
-0.50

23.05
23.10

Milling & Baking News

$11.00
J

D
Previous Year

16.20
16.10
8.85
...

Choice milling 13% 7.80

$13.00

M
Current Year

Spring standard, Minneapolis
-

9.20

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

Semolina

$20.00

Year
ago
23.45
23.25
23.15
16.00
12.00
26.75

Nationally advertised family ﬂour

$18.00
$16.00
$14.00
$12.00
J

D
Previous Year

M
Current Year

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

Dollars
June 29
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

D
Previous Year

M
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - July 3, 2018

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