Food Business News - July 10, 2018 - 92
INGREDIENT MARKETS Bakery Flour Bookings of bakery flour were limited last week. Prices were raised in consideration of stronger wheat futures and firm cash wheat markets. Bakers entered the holiday-shortened workweek mostly comfortable with their flour coverage and may reassess their ownership positions in the next week. Early last week, individual bakers, particularly spring grade users, extended coverage of the futures component of flour contracts into the fourth quarter of 2018 and even the first quarter of 2019. This activity shut off quickly, though, once futures began the advance. Millers indicated some surprise that the recent slump in wheat futures hadn't translated into even heavier flour coverage in the current and fourth quarters. The principal stumbling block to bread bakers taking a more active stance was the stubbornly strong cash hard red winter wheat basis. Bakers awaited what has proved to be an elusive break in the cash wheat basis. They reasoned that with the hard winter wheat harvest making great strides, the cash wheat market should begin to show weakness. Bread bakers have covered 60% to 75% of their flour needs for July-September, according to one miller. Coverage for cookie-cracker and specialty bakers was similar. Specialty bread bakers and other spring grade users held more extensive coverage estimated at 85% to 90% through September. Unlike the cash hard red winter wheat basis, spring wheat premiums have held at levels more in line with the five-year average. Mill grind averaged about four to five days last week with most mills taking downtime on Independence Day. FBN Family Flour Sales of national and regional brands of family flour were seasonally sluggish last week. Carlot list prices were unchanged. No. 1 hard amber durum Bakery flour Bulk, f.o.b. car, $ per cwt Kansas City Bakers short patent Bakers standard patent 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 - Change from - Year July 6 June 29 June 22 ago 16.75 16.65 0.55 0.55 0.20 0.20 18.00 17.90 16.35 16.25 19.25 16.25 16.60 16.10 16.00 14.60 0.25 0.25 0.25 0.25 0.25 0.25 0.25 - -0.05 -0.05 -0.05 -0.05 -0.05 -0.05 -0.05 -0.05 20.65 20.55 23.55 20.55 20.90 20.40 20.30 14.55 14.25 15.75 0.30 0.30 0.50 0.50 14.20 15.7 0 19.15 18.80 21.80 17.75 17.10 0.55 0.50 0.50 0.30 - 0.20 0.25 0.25 0.50 -0.05 20.40 23.00 26.00 17.70 17.05 21.55 21.60 0.55 0.55 0.20 0.20 23.00 23.05 Track, Chicago $ per bu Choice milling 13% - Change from - Year June 29 June 22 ago - - 9.50 Bakers standard, Kansas City Bulk, f.o.b. car, $ per cwt $19.00 $17.00 $15.00 $13.00 $11.00 J O J A Spring standard, Minneapolis $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 J O J A Cracker flour, Chicago Semolina Bulk, f.o.b. Minneapolis, - Change from - $ per cwt July 6 June 29 June 22 Semolina 19.95 - -.05 Granulars 19.75 - -.05 Flour 19.65 - -.05 Semolina - N.Y. 23.15 - -.05 July 6 8.10 $15.50 Year ago 24.65 24.45 24.35 27.85 $13.50 $11.50 Nationally advertised family flour Dollars 8-5s 92 July 6 18.52 Food Business News Year ago 18.52 $9.50 J O J Previous Year A Current Year Late spring/early summer marks the nadir for family flour sales. Shipments will begin to pick up with the beginning of the 2018-19 school year and the approach of the fall baking season. Manufacturers with warehousing capacity have begun to package 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%. FBN Semolina Bookings of semolina, durum flour and granulars were light last week. Price adjustments were slim. The price of choice milling hard amber durum as quoted at the Chicago rail gateway for delivery beyond was unchanged at $8.10 a bu. The Minneapolis price was $7.80. The principal constraint on new business last week was the well covered status of most pasta manufacturers. One durum mill estimated July-September semolina coverage at 95% completed, and October-December ownership was estimated at 80%. Coverage was extensive by historical measures. The Arizona durum harvest was 85% completed by July 1 compared with 75% a week earlier and 82% last year, according to the U.S. Department of Agriculture. North Dakota durum was 42% headed as of July 1 compared with 46% last year. The state's crop was rated 76% good to excellent, 22% fair and 2% poor. Montana durum was 25% headed by July 1 compared with 27% a year ago and 15% as the five-year average for the date. The Montana crop was rated 54% good to excellent (54% a week earlier and 49% as the five-year average for the date), 43% fair and 3% poor. In its latest Grain Market report, the International Grains Council on July 2 estimated the European Union crop unchanged at 9 million tonnes. At the same time, merchandisers pointed out there was rain during harvest in some areas that may have exacted a toll on quality and increased European demand for North American supply in 2018-19. FBN July 10, 2018