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Commodities: Last week's markets a preview of eclipse for some brands

It might have seemed to some last week that today's total eclipse was coming early, as stock prices fell or flattened for the majority of brands monitored here in trading.

August 21, 2017 by S.A. Whitehead — Food Editor, Net World Media Group

It might have seemed to some last week that today's total eclipse was coming early, as stock prices fell or flattened for the majority of brands monitored here in trading.

Vehicle fuel and natural gas prices did little to brighten the outlook, but stabilizing cheese prices and lower wheat costs at least brought a glimmer of sunshine. 

Cheese

Over full five days of selling on the cheese markets last week, prices managed to stay exactly where they were a week earlier, closing Friday at $1.76.  

Wheat

Compared with last week, wheat was 6 to 39 cents lower. In fact, USDA market reporting suggests that in the future winter wheat could see light buying interest as the U.S. dollar index is lower. The reporting service said that the  long-term view of winter wheat supply and demand looks to remain extremely bearish.  

Last week, Kansas City U.S. No. 1 Hard Red Winter, ordinary protein rail bid was 6 to 39 cents lower from $4.16 1/4 to $5.19 1/4 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 30 to 32 cents lower from $4.09 to $4.15 per bushel. Minneapolis and Duluth U.S. No. 1 Dark Northern Spring, 14 to 14.5 percent protein rail, was 23 to 28 cents lower at $7.55 1/4 per bushel. Portland U.S. Soft White wheat rail was 26 1/4 to 35 cents lower from $4.89 to $5.25 per bushel.

Natural gas

Natural gas spot prices rose at most locations this report week (Wednesday, Aug. 9 to Wednesday, Aug. 16). The Henry Hub spot price rose from $2.85 per million British thermal units last Wednesday to $2.89 per MMBtu yesterday.

At the New York Mercantile Exchange, the September 2017 contract price rose 1 cent from $2.883 per MMBtu last Wednesday to $2.890 per MMBtu yesterday.

Net injections to working gas totaled 53 billion cubic feet for the week ending Aug. 11. Working natural gas stocks are 3,082 Bcf, which is 8 percent less than the year-ago level and 2 percent more than the five-year (2012–16) average for the week.

The natural gas plant liquids composite price at Mont Belvieu, Texas, rose 16 cents, averaging $6.95 per MMBtu for the week ending Aug. 16. The price of natural gasoline fell 3 percent, while the price of ethane, propane, butane, and isobutane rose 4, 3, 3 and 5 percent, respectively.

According to Baker Hughes, for the week ending Friday, August 11, the natural gas rig count decreased by 8 to 181. The number of oil-directed rigs rose by 3 to 768. The total rig count decreased by 5, and it now stands at 949.

Overall demand remains flat. Total U.S. consumption of natural gas was unchanged from last week, averaging 59.9 Bcf/d, according to data from PointLogic Energy. Natural gas consumed for power generation climbed 1 percent week over week. Industrial sector consumption decreased 1 percent week over week. In the residential and commercial sectors, consumption declined 4 percent, while natural gas exports to Mexico decreased 3 percent. 

Pizza company stocks

During a relatively rough week for big-name pizza stocks, Domino's was the hardest hit, falling from its $193.40 price a week ago, to $188.66 last Friday, continuing the recent price decline begun several weeks ago. 

Meanwhile, Pizza Hut parent, Yum Brands took a slightly less pronounced value tumble, falling to $75.41 Friday, down 11 cents from a week earlier when the stock closed at $75.52. Fellow Louisville-based brand, Papa John's remained flat at $78.54 Friday. 

And finally, Papa Murphy's increased slightly in value from $4.46 on Aug. 10 to $4.53 last Friday at the close. 

Photo: iStock

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.