Milling & Baking News - July 17, 2018 - 48

Ingredient Week

Bakery Flour
Bookings of bakery flour expanded last
week. Prices were lowered mostly in consideration of slumping wheat futures.
Bakers took advantage of the drop in
wheat futures through midweek to add
to flour coverage in both the third and
fourth quarters of 2018 with some extending contract balances or at least coverage of the futures component of flour
contracts into the first or even second
quarter of 2019.
Bread bakers have covered 70% to
75% of their flour needs through September. The chief obstacle to completing
coverage for the third quarter was the
stubbornly strong cash hard red winter
wheat basis. Millers and bakers awaited
an elusive break in the basis under harvest pressure. The basis showed hints of
weakness at the higher protein levels at
midweek, but premiums later bounced
back to recoup most of their losses.
Flour coverage for cookie-cracker and
specialty bakers was similar to that held
by pan bread bakers. Specialty bread
bakers and other users of spring grades
held more extensive coverage estimated
at about 90% through September. The
cash spring wheat basis was at levels
near the five-year average and posed no
obstacle to contracting.
The average protein of the 2018 hard
red winter wheat crop will be well above
levels of the previous two years. But with
heavy supplies of low-protein wheat
in storage from the last two harvests, it
was expected elevators will blend their

low-protein inventory with the higherprotein wheat harvested this year. This
made it difficult to assess the average
protein level millers and bakers may be
confident of accessing for the year.
Mill grind ranged between five and
six days across most of the country. MBN

Family Flour
Sales of national and regional brands
of family flour were seasonally sluggish.
Carlot list prices were unchanged.
Sales and shipments weren't expected
to break out above routine until the approach of the fall baking season.
Manufacturers with warehousing
capacity continued to pack supply and
build inventories for the fall.
Nearly all private label buyers have
covered their flour needs through September, and October-December coverage
was estimated at about 20%.
The private equity firm Brynwood
Partners entered into an agreement to
purchase the U.S. baking business of The
J.M. Smucker Co. Brands included in the
transaction are Pillsbury, Martha White,
Hungry Jack, White Lily and Jim Dandy. MBN

Semolina
Bookings of semolina, granulars and
durum flour were limited last week with
the well covered status of most pasta
manufacturers the principal constraint
on new business. Prices were soft.
The price of choice milling hard amber durum as quoted at the Chicago rail
gateway for delivery beyond was $8 a

bu, down 10c from the previous week.
The Minneapolis price was $7.70 a bu.
Semolina coverage was extensive.
One durum miller estimated July-September coverage was 95%, and OctoberDecember ownership was about 80%.
The U.S. Department of Agriculture
on July 12 issued its first survey-based
production forecasts for durum and
other-spring wheat. The U.S.D.A. forecast
durum production this year at 75 million
bus, up 36% from 55 million bus in 2017.
The U.S.D.A. office in Arizona indicated
the durum harvest there was 95% completed by July 8 compared with 86% as the
recent five-year average for the date.
The U.S.D.A. indicated North Dakota durum was 81% headed by July 8
compared with 53% a year ago and well
ahead of the recent five-year average for
the date at 43%. Durum turning color
was 2% compared with 9% a year ago.
North Dakota durum was rated strongly
at 81% good to excellent, 16% fair and
3% poor to very poor. The U.S.D.A. indicated the Montana durum crop was 56%
headed by July 8 compared with 56% a
year ago and 37% as the five-year average for the date. Two per cent of the crop
was turning color. Montana durum was
rated 63% good to excellent (54% a week
earlier), 33% fair and 4% poor. 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
July 13 July 6
June 29 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 17, 2018

Track, Chicago
$ per bu
July 13
Choice milling 13% 8.00

- Change from - Year
July 6 June 29 ago
-.10
-.10 10.90

$11.00
J

J
Previous Year

16.10
16.00
8.85
...

-0.65
-0.65
-
...

-0.10
-0.10
-
...

16.25 Track, Minneapolis
16.15 $ per bu
8.85 Choice milling 13% 7.70
...

15.45
15.35
18.35
15.35
15.70
15.20
15.10
14.45

-0.90
-0.90
-0.90
-0.90
-0.90
-0.90
-0.90
-0.15

-0.65
-0.65
-0.65
-0.65
-0.65
-0.65
-0.65
-0.15

13.70
15.20

-0.55
-0.55

-0.25
-0.25

18.50
17.80
20.80
17.20
16.95

-0.65
-1.00
-1.00
-0.55
-0.15

-0.10
-0.50
-0.50
-0.25
-0.15

20.15 Bulk, f.o.b. Minneapolis, $ per cwt
- Change from - Year
20.05
July 13
July 6 June 29
ago
23.05
19.60
-.35
-.35
26.90
20.05 Semolina
19.40
-.35
-.35
26.70
20.40 Granulars
19.30
-.35
-.35
26.60
19.90 Flour
15.50
-
-
16.00
19.80 First clear
8.50
-
-
12.00
14.55 Second clear
Semolina - N.Y. 22.80
-.35
-.35
30.10
13.65
Nationally advertised family ﬂour
15.15
Dollars
July 13
Year ago
18.65
Family patent, 2-25s papers 24.12
24.12
22.50
4-10s
n.a.
n.a.
25.50
8-5s
18.52
18.52
17.15
18-2s
20.64
20.64
17.05
Self-rising
n.a.
n.a.

20.90
20.95

-0.65
-0.65

-0.10
-0.10

Milling & Baking News

$13.00

A
Current Year

Spring standard, Minneapolis
-.10

-.10

10.60

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

Semolina

21.25
21.30

$20.00
$18.00
$16.00
$14.00
$12.00
J

J
Previous Year

A
Current Year

Cracker ﬂour, Chicago
Bulk, f.o.b. car, $ per cwt
$15.50
$13.50
$11.50
$9.50
J

J
Previous Year

A
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - July 17, 2018

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