Article

Commodities: Prices on the rise

The price of commodities were mostly on the rise last week, while the value of pizza stocks fell, making the holiday week less than happy one for those in the pizza business.

September 12, 2016 by S.A. Whitehead — Food Editor, Net World Media Group

The first full trading week of September was not a kind one for pizza restaurateurs with pizza stocks falling and tmost commodities edging up in price for the week. 

Cheese: 
After a plummet in cheese prices over the last several weeks, the prices began to rise again, closing Friday at $1.71, up from $1.68 a week earlier. This week's Global Dairy Trade auction also showed higher average prices for all commodities traded on the platform. 

Wheat: 
U.S. wheat futures climbed slightly this week on the hope that a shortage of worldwide quality wheat will soon bring overseas buyers to the U.S.  In Chicago, futures rose 3 cents a bushel and Kansas City futures rose 7 cents a bushel. Number 1 Hard Red Winter wheat was priced at $3.935 per bushel as of Friday's close, according to the U.S. Department of Agriculture. 

Gasoline and diesel fuel
Prices for auto fuel were choppy, with regular this morning going for $2.18 a gallon, down 2 cents from last week, but up 5 cents from a month ago. That price was still lower, of course, than last year at this time when we paid $2.35 a gallon for regular. 

Mid-grade and premium gas were both pricier at the pump than a week ago, with prices this morning about a nickel higher for each from last month at $2.45 for mid-grade and $2.69 for premium. Both grades, however were still down substantially from last year at this time when we paid $2.64 for mid-grade and $2.86 for premium. Diesel fuel was also up to $2.36 this morning, from $2.29 a month ago, but down substantially from the $2.54 we paid for a gallon of diesel last year at this time. 

Natural gas 
Natural gas spot prices were mixed this report week (Aug. 31 to Sept. 7). The Henry Hub spot price fell from $2.94/MMBtu last Wednesday to $2.82/MMBtu yesterday. At the New York Mercantile Exchange, the October 2016 contract fell 21 cents, from $2.887/MMBtu last Wednesday to $2.676/MMBtu yesterday.

Net injections to working gas totaled 36 Bcf for the week ending Sept. 2. Working gas stocks are 3,437 Bcf, which is 6 percent greater than the year-ago level and 10 percent greater than the five-year (2011-15) average for this week. The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 20 cents, closing at $4.71/MMBtu for the week ending Sept. 2. The price of natural gasoline, propane, butane, and isobutane fell by 13, 1, 3 and 5 percent, respectively. The price of ethane rose by 2 percent.

According to Baker Hughes, for the week ending Friday, Sept. 2, the natural gas rig count increased by 7 to 88, the largest weekly increase since April 2015. The number of oil-directed rigs rose by 1 to 407. The total rig count climbed by 8, and now stands at 497.

Pizza company stocks
It was not a good week for pizza stocks with all the mega-chains losing value on the week. Domino's closed at $146.13, down from $151 the previous Friday. Pizza Hut parent, Yum Brands, closed at $86.97, down from $91.26 at the previous week's close, while Papa John's ended the trading week at $74, down $1.75 from the previous Friday's close of $75.75. 

In fact, the only winner in this area of trading last week was take-and-bake chain, Papa Murphy's, which closed the week up about a dime from the previous Friday at $5.86. 

About S.A. Whitehead

---

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.