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Commodities: Gas prices stabilize, Papa Murphy's takes hit

It was mostly good news for pizza restaurateurs on the markets last week, unless you operate under the Papa Murphy's sign, where stock values took a tumble last week.

May 1, 2017 by S.A. Whitehead — Food Editor, Net World Media Group

It was mostly good news for pizza restaurateurs on the markets last week, unless you operate under the Papa Murphy's sign, where stock value took a tumble last week. Likewise, wheat was trading higher than it has for a while last week, though that is balanced somewhat by the waning values cheese is bringing at market. 

Cheese
That bump in cheese values last week did not last long, as the price for the commodity on Friday returned to a very familiar $1.48. Last week, and in early April, the product was trading as high as $1.55. 

Wheat
Compared to last week, grain bids were higher, with news that the U.S. plans to remain in the North American Free Trade Agreement giving some support to grain prices.  

Kansas City U.S. No. 1 Hard Red Winter, ordinary protein rail bid was 33 to 35 cents higher, from $4.18 3/4-$4.84 3/4 per bushel. Kansas City U.S. No. 2 Soft Red winter rail bid was not quoted.  

St. Louis truck U.S. No. 2 Soft Red Winter terminal bid was 9 to 36 cents higher, at $4.22 per bushel. Minneapolis and Duluth U.S. No. 1 Dark Northern Spring, 14.0 to 14.5 percent protein rail, was 46 1/4 to 53 1/4 cents higher from $6.68 1/4-$6.75 1/4 per bushel. Portland U.S. Soft White wheat rail was steady to 32 1/4 cents higher from $4.58 1/2-$4.70 per bushel.

Gasoline and diesel fuel
After a long period of slowly rising prices, gas and diesel fuel rates last week began falling. And though still higher overall than last month and last year, the downturn in price is a welcome development, though it's likely to fade over the next few weeks as we approach the Memorial Day start of the summer travel season. 

This morning, the price of regular was $2.39, down 3 cents from last week, but still up 7 cents from last month and 18 cents from the price last year. That was the trend for the two higher grades of gas and diesel which all dropped 2 or 3 cents in cost from last week, though still up about 7 cents from a month ago. Diesel's fluctuations have been less substantial over the last month than other gasoline grades. 

Natural gas
Natural gas spot prices fell at most locations for the report week ending last Wednesday. The Henry Hub spot price fell from $3.12 per million British thermal units (MMBtu) last Wednesday to $3.02/MMBtu a week later.

At the New York Mercantile Exchange (Nymex), the May 2017 contract price fell to $3.142/MMBtu, down 4 cents on the week. Working natural gas stocks are 2,189 Bcf, which is 14 percent less than the year-ago level and 16 percent more than the five-year (2012–16) average for this week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 30 cents, averaging $6.19/MMBtu for the week ending April 26. The spot prices of natural gasoline, ethane, propane, butane, and isobutane all fell by 4, 2, 6, 7  and 5 percent respectively.

Between Wednesday, April 19 and Wednesday, April 26, the Henry Hub spot price fell 10 cents, from $3.12/MMBtu last Wednesday to $3.02/MMBtu yesterday. The southern half of the country experienced mild shoulder season weather for the report week, with relatively low air conditioning load and demand for home heating.

Pizza company stocks
Among pizza stocks monitored by this site, the only real problems involved take-and-bake chain, Papa Murphy's, which incidentally also began testing delivery in select markets with an eye toward chain-wide institution of the service.

Meanwhile, for powerhouse Domino's Pizza, values rose over the week's trading, from $179.30 on Friday, April 21, to $181.39 last Friday, a healthy $2.09 spike in value. Pizza Hut parent, Yum Brands also got a lift last week from $64.82 on April 21 to $65.75 at the close of trading Friday.

Fellow Louisville-based brand, Papa John's Pizza, had a slight punch up in value over the week, rising from $78.83 on April 21 to $79.06 at the close on April 27. But Papa Murphy's value took a substantial hit in last week's trading, dropping to $4.88 at the close Friday, down 60 cents from its value a week earlier of $5.48. 

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.