Milling & Baking News - March 26, 2019 - 48

Ingredient Week
Bakery Flour

Bookings of bakery flour were limited
last week. Millers suggested the pace of
business has slowed from the previous
few weeks. Prices were raised.
Most of the week's business transpired early in the week. Flat booking of
flour largely was lacking, but a number
of bakers pulled together components
- futures, basis and millfeed - to complete additional contracts for the second
quarter and to a lesser extent the third.
Wheat futures were on the rise after
posting contract lows a week earlier.
The widest gains were in Minneapolis
futures. At the same time, many bakers
were not terribly affected by the advance
having earlier covered the futures component of forward flour contracts well
into or even through the second quarter.
Escalating cash hard red winter wheat
premiums discouraged pan bread bakers
from adopting a more aggressive stance.
Bakers were hopeful the cash basis will
weaken, but millers cautioned that flour
buyers should not expect significant relief
on that front. While poor railroad logistics
helped prop up the spot cash wheat basis,
it was expected, even should they decline
from current levels, premiums may remain firm perhaps through old crop. Cash
hard red spring wheat premiums were
firm through Thursday, when they buckled despite the lack of spot offers.
Flour distributors, particularly those
in the Northeast, continued to buy virtually hand to mouth. It was uncertain
whether the late-week break in the

Bakery flour

Family Flour

Sales of national and regional brands
of family flour were seasonally routine.
Carlot list prices were unchanged.
Manufacturers awaited a bump up in
demand that typically takes place in the
weeks before Easter. The holiday falls
late this year, on April 21. At the same
time, the Easter bump in recent years
was not viewed as all that significant.
Family flour was deeply discounted in
the Carolinas in the past couple of weeks,
as low as $1.15 per 5-lb bag. The discounts
were unveiled by Lidl, a discount supermarket chain, and subsequently were
matched by Aldi and Walmart.
It was uncertain how long the discounts will be in effect. Manufacturers
indicated no such severely discounted
product was available in other regions.
It was expected that during the leadup
to Easter, most promotions will be on the

No. 1 hard amber durum

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
48 / March 26, 2019

spring wheat cash basis would be sustained, providing an opportunity to give
some extension to their backlogs, which
were at about two weeks.
One miller indicated that pan bread
bakers and cookie-cracker and specialty bakers have booked nearly all their
flour requirements through June while
spring grade users still had gaps to fill.
Their coverage was estimated at 70%.
July-September flour coverage was estimated at 45% for pan bread flour, 35%
for spring grades and 30% for soft flour.
Mill grind last week mostly ranged
from five to 5½ days. MBN

- Change from - Year
Mar. 22 Mar. 15 Mar. 8 ago

Track, Chicago
- Change from - Year
$ per bu
Mar. 22 Mar. 15 Mar. 8 ago
Choice milling 13% 7.50
+.20
+.20 8.35

15.65
15.55
8.85
...

0.40
0.40
-
...

0.85
0.85
-
...

15.50
15.40
8.85
...

Track, Minneapolis
$ per bu

17.40
17.30
18.30
17.30
17.65
17.15
17.05
21.80

0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.10

1.05
1.05
1.05
1.05
1.05
1.05
1.05
0.10

17.95
17.85
20.85
17.85
18.20
17.70
17.60
14.55

Bulk, f.o.b. Minneapolis, $ per cwt
- Change from -
Mar. 22 Mar. 15 Mar. 8
Semolina
18.05
+.55
+.55
Granulars
17.85
+.55
+.55
Flour
17.75
+.55
+.55
First clear
13.00
-
-.50
Second clear
7.50
-
-
Semolina - N.Y. 21.25
+.55
+.55

12.55
14.05

0.15
0.15

0.70
0.70

12.70
14.20

18.05
19.45
20.45
16.05
24.30

0.40
0.50
0.50
0.15
0.10

0.85
0.95
0.95
0.70
0.10

17.90
19.80
22.80
16.20
17.05

20.25
20.30

0.40
0.40

0.85
0.85

20.50
20.55

Milling & Baking News

Choice milling 13% 7.00

Semolina

Bookings of semolina, granulars and
durum flour were limited last week.
Prices were raised.
The price of choice milling hard amber
durum as quoted at the Chicago gateway
for delivery beyond was a nominal $7.50
a bu, up 20c. The stronger tone of the
market was tied to worsening rail logistics and may be short lived. Grain merchandisers noted isolated trains traded as
high as $8 a bu. These few transactions involved mills buying supply to fill gaps in
pipelines that opened because of delayed
shipments of contracted durum. It was
thought once the logistical situation was
righted, prices may decline once again.
Pasta manufacturers largely were unaffected by what may prove to be temporary strength in the cash durum market
as they much earlier entered into contracts with millers for extensive forward
coverage at lower price levels.
One miller estimated April-June semolina coverage at 85%, and July-September coverage also was estimated at about
85%. Fourth-quarter 2019 coverage was
estimated as high as 45%.
Durum mill grind ranged between
five and six days. MBN

Bakers standard, Kansas City

Bulk, f.o.b. car, $ per cwt
$19.00
$17.00
$15.00
$13.00
$11.00
M

Previous Year

D
Current Year

Spring standard, Minneapolis
-

8.05

Semolina

Mar. 22
Family patent, 2-25s papers 24.12
4-10s
n.a.
8-5s
18.52
18-2s
20.64
Self-rising
n.a.

Bulk, f.o.b. car, $ per cwt
$22.00
$20.00

Year
ago
20.55
20.35
20.25
15.50
8.50
23.75

Nationally advertised family flour
Dollars

order of two 5-lb bags for $5 or even $4. MBN

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

$18.00
$16.00
$14.00
$12.00
M

S
Previous Year

D
Current Year

Cracker flour, Chicago

Bulk, f.o.b. car, $ per cwt
$15.00
$13.50
$12.00
$10.50
M

J
Previous Year

D
Current Year

bakingbusiness.com / world-grain.com

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

Milling & Baking News - March 26, 2019

Table of Contents for the Digital Edition of Milling & Baking News - March 26, 2019