Food Business News - June 7, 2011 - 82

Ingredient Markets
Market commentary for one-week period ended June 3, 2011

Sweeteners
Sweetener markets remained in their spring doldrums last week. Cash trading was slow, and prices were unchanged. New York raw sugar futures jumped as slow shipments of new crop out of Brazil kept the world supply tight. Domestic bulk reﬁned beet and cane sugar for spot through Sept. 30, 2012, was offered at 57c a lb f.o.b. Although price discovery was difﬁcult based on slow trading, bulk reﬁned sugar was found below that level. A limited amount of supply was available from the few beet processors that still had old crop inventory. Most beet processors were sold out for 2010-11, and most had more than usual booked for the next marketing year with estimates ranging from “more than 50%” to about 80% on an individual basis for 2011-12. Inquiry for next year was noted, and some interest was shown for 2012-13, but few new sales were evident. There were indications strong shipments from Mexico were beginning to wane, which may further tighten supply in the United States in July-September, the ﬁnal quarter of 2010-11. One trader noted he was getting inquiry from users who had been buying Mexican sugar, and he suggested only ﬁrmly committed supply would be available going forward as Mexico’s cane processing season winds down and domestic supply there tightens. Production of sugar in Mexico from the start of the season through May 28 was

5.13 million tonnes, up 8.4% from the same period a year ago, according to the national cane workers’ union, and was forecast at 5.25 million tonnes for the year. Mexico’s Economy Ministry opened a 150,000-tonne import quota in late May, seen as needed to partly replace strong shipments to the United States. U.S. sugar beet planting as of May 29 stalled in Michigan at 96% but moved ahead in Minnesota to 90% (80% a week earlier) and North Dakota to 88% (also 80%), the U.S. Department of Agriculture said in its latest Crop Progress report. Planting in the four major states, including Idaho, which ﬁnished planting a couple of weeks ago, stood at 92% compared with 99% as the 2006-10 average for the date. The slow progress in the Red River Valley will require a good growing season and a late frost for the crop to reach its potential, traders said. Although a global sugar surplus was expected in coming months, weatherdelayed new crop harvesting in Brazil coupled with increased demand from the Middle East to build white sugar stocks ahead of the Ramadan holiday in August resulted in a supply squeeze. New York world raw futures and London white sugar futures hit six-week highs with New York domestic raws following. FBN

Edible of edible oil were limited last Oils Bookings
week. Price changes were mixed.

Soybean oil prices were unchanged. Soybean oil futures prices advanced with the rest of the soy complex, where gains reﬂected concerns about the pace of soybean planting, which remained well behind the average for the date because of excessively wet conditions in the eastern Corn Belt. Futures prices weakened early in the week but recovered in subsequent trading. The cash basis on soybean oil weakened. With stocks heavy, reﬁners were more assertive in seeking outlets. The U.S. Bureau of the Census estimated soybean oil stocks in the United States at the end of April at 3,353 million lbs, down from 3,410 million lbs at the end of March and compared with 3,354 million lbs in April 2010. Net sales of U.S. export soybean oil during the week ended May 26 totaled 29,200 tonnes, “up appreciably” from the previous week, according to the U.S. Department of Agriculture. Morocco was the principal buyer with 29,100 tonnes. Palm oil prices moved up after futures prices set seven-week highs late the previous week. The stronger palm oil market reﬂected increased demand from China, which sought a larger supply to support its biodiesel manufacturing. Cottonseed oil pricing was restrained in view of ample supply. The premium to soybean oil asked for canola oil narrowed. At the same time, there were concerns about the slow pace of planting in Manitoba. FBN

Beet and cane sugar
f.o.b. plant, cents per lb

Sweeteners
Delivered basis, cents per lb HFCS spot price1

HFCS list price2 Regular — Change from — Year corn June 3 May 27 May 20 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet June 3 Year ago Midwest beet 55.00 @ 57.00 — — 49.00 21.375 24.875 net 153/8@ 193/8 153/8@ 163/8 29.85@33.85 24.625 East Paciﬁc beet 55.00 @ 57.00 — — 49.00 Midwest 22.925 26.425 net 28.85@32.85 26.175 Midwest Cane* 55.00 @ 57.00 — — 49.00 Northeast 16¾@ 20¾ 16¾@ 17¾ 23.125 26.625 net *Spot raw plus 7% plus 16.5c with 2% cash discount. Southeast 167/8@ 207/8 167/8@ 177/8 31.85@35.85 26.375 West 22.625 26.125 net Southwest 16½@ 20½ 16½@ 17½ 25.875 Raw cane 23.325 26.825 net West 173/8@ 213/8 173/8@ 183/8 26.575 Delivered reﬁner, cents per lb 1-Variations in prices often tied to tank car versus truck deliveries. 2-Prices are the lowest available to the publication. 3-Regular 42 DE/43 Baume, f.o.b. tank cars, trucks Contract Nearby July-September October-December January-March April-June July-September — Change from — June 3 May 27 May 20 35.05 — -.10 35.25 — -.25 35.60 +.10 +.30 33.75 +.25 -.55 33.80 +.25 -.40 33.80 +.20 -.40 Year ago 32.50 32.30 27.70 26.45 26.50 26.45

Chicago soybean oil futures
Bulk in tank cars, cents per lb June 3 — Change from — Delivery close May 27 May 20 July 58.73 +.12 +1.27 August 59.01 +.12 +1.32 September 59.28 +.11 +1.34 October 59.55 +.16 +1.45 December 60.04 +.24 +1.58 January 60.25 +.30 +1.61 Year ago 36.78 36.99 37.22 37.42 37.88 38.18

Edible oils
Bulk, cents per lb — Change from — Year June 3 May 27 May 20 ago Soybean oil, Decatur 57.75 Loose lard, Chicago 57.50 Edible tallow, Chicago 56.75 Cottonseed oil, Miss. PBSY 57.75 Palm oil, ports 59.50 Palm kernel oil, ports 72.50 Coconut oil 97.00 Peanut oil, Southeast 81.00 Corn oil, Decatur 73.00 Sunﬂowerseed oil, Midwest 104.00 Canola oil, Midwest 61.25 — +4.00 +1.25 -.25 +.75 +1.50 — -3.00 -2.00 — -.25 +1.00 34.50 +4.00 35.00 +3.75 34.00 +1.50 38.25 +1.00 41.25 +1.50 46.50 — 45.75 — -2.00 67.00 39.00

Spot soybean oil
Decatur, Ill., bulk cents per lb
63.00 53.00 43.00 33.00 23.00 J S D Previous Year M Current Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. June 57.23 @57.73 July 57.23 @57.73 August 57.51 @58.01 September 57.78 @58.28 October 58.05 @58.55 November 58.30 @58.80 December 58.54 @59.04 Western points 56.48 @56.73 56.48 @56.73 56.76 @57.01 57.03 @57.28 57.30 @57.55 57.55 @57.80 57.79 @58.04

— 53.00 +1.25 38.75

FOODBUSINESS NEWS

June 7, 2011

Food Business News - June 7, 2011

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