Food Business News - September 27, 2011 - 58

Ingredient Markets
Market commentary for one-week period ended September 23, 2011

Soy Products
Soy ﬂour sales were slow last week as buyers watched prices decline and hoped for still lower values in the next few weeks when the soybean harvest gets into full swing across the Corn Belt. Cash basis levels on soybean meal were weak. Sales were limited to ongoing month-to-month coverage. Processors noted active inquiries but few new sales for 2012. Some processors recommended buyers take ﬁrst-quarter 2012 coverage at last week’s lower price levels. Lead times for new orders held at two to three weeks. Soybean futures prices sank with other commodities last week, mainly on macroeconomic fears after the Federal Reserve said there were signiﬁcant risks to the U.S. economy. Soybean futures fell about 7% last week and were down about $2 a bu, or 14% since late August. Nearby contracts were near 10-month lows as the week ended. Analysts indicated the near $1-a-bu declines last week were the largest weekly losses for soybeans since September 2009. Sharply lower crude oil futures and strength in the value of the U.S. dollar also weighed. Soybean crop conditions as of Sept. 18 in the 18 major growing states were rated 53% good to excellent, down from 56% a week earlier and below 63% at the same time last year, the U.S.D.A. said in its weekly Crop Progress report. The crop was 33% dropping leaves compared with 56% a year ago and 47% as the 2006-10 average for the date. Harvesting moved into the Corn Belt with about 1% of the crop combined in Indiana, Illinois and Missouri as of Sept. 18. Net export sales of U.S. soybeans in the week ended Sept. 15 for delivery in 2011-12 were 404,400 tonnes, up 15% from a week earlier, the U.S.D.A. said. Soybean meal exports for 2010-11, which ends Sept. 30,

saw a net reduction of 21,200 tonnes for the week, but recorded net sales of 197,100 tonnes for 2011-12. FBN

Corn Products
Corn meal sales were steady last week as prices dropped sharply. Some additional contracting was noted, but most buyers were willing to see if prices fall further as the harvest gains momentum across the Corn Belt. Coverage remained light into 2012. Mills ran ﬁve to six days. Corn futures prices dropped about 50c a bu, or about 7%, last week with nearby December down about $1.37 a bu, or more than 17%, since late August. Losses in outside markets, including sharp declines in equities and crude oil, and gains in the value of the U.S. dollar, all the result of broad economic fears and concerns about a recession, were major pressuring factors. Fundamentals remained mostly supportive, including tight stocks, weather-reduced yields and talk of Chinese corn imports. Corn in the 18 major states was rated 51% good to excellent as of Sept. 18, down from 53% a week earlier and well below 68% a year ago, the U.S.D.A. said in its Crop Progress report. The harvest in the 18 states was an aggregate 10% completed, about even with the 2006-10 average for the date. Corn combined in Iowa was 3%, Illinois 11%, Indiana 4%, Nebraska 2%, Missouri 34% and Kansas 32%. The crop was 46% mature in the 18 states. Net export sales of U.S. corn during the week ended Sept. 15 for delivery in 201112 totaled 598,100 tonnes, down 47% from a week earlier, the U.S.D.A. said. FBN

covered through the end of 2011 with some holding coverage a quarter or two into 2012, and in a few cases, through September of next year. Prices declined, reﬂecting losses in Chicago oats futures values, which fell with other commodities in a broad market sell-off spurred by macro-economic concerns. The Canadian oats harvest progressed after killing frosts a couple weeks earlier ended plant growth for the season in most areas. Oats were 55% combined in Saskatchewan, and harvesting was nearly completed in Manitoba as of Sept. 18. FBN

Rice
U.S. milled rice prices were unchanged except for brewers’ grain, which was steady to $1 a cwt higher last week. Rice byproduct prices were ﬁrm to $20 a ton higher. U.S.D.A. 2011 crop world milled rice prices were unchanged. Rough rice futures prices were sharply lower as were other commodities, mostly the result of macro-economic concerns. The carryover of U.S. rice on Aug. 1, 2012, was projected at 38.3 million cwts, up 5.1 million cwts, or 15%, from the August projection but down 15.2 million cwts, or 31%, from 48.4 million cwts in 2011, the U.S.D.A. said in its September World Agricultural Supply and Demand Estimates. The increase in the carryover was the result of lower 201112 beginning stocks that was more than offset by increased 2011 U.S. rice production and imports and decreased 2011-12 exports. Rice in the six major states was 47% harvested as of Sept. 18, about even with the ﬁve-year average for the date but behind 65% a year ago, the U.S.D.A. said. Net export sales of U.S. rice during the week ended Sept. 15 for delivery in 2011-12 were 31,500 tonnes, down 6% from a week earlier, the U.S.D.A. said. FBN

Oats of food grade oats ﬂakes were Bookings
steady last week. Most users were well

Chicago corn and soy futures
Corn Futures $ per bu December March May July September December Soybeans November January March May July August Soybean Meal October December January March May July — Change from — Year Sept. 23 Sept. 16 Sept. 9 ago 6.38½ 6.52 6.59½ 6.63½ 6.08½ 5.78½ $ per bu 12.58 12.69 12.76½ 12.82¼ 12.90 12.80¾ $ per ton 326.00 330.10 332.10 335.20 337.00 339.40 -53½ -53½ -54 -53½ -54½ -47½ -97½ -98 -98¾ -98¼ -98¼ -95½ -22.70 -23.00 -23.20 -23.50 -23.50 -23.40 -98 -97¼ -96¼ -96½ -91 -78 -168¾ -167¾ -166 -162 -160 -156 -44.30 -45.00 -45.20 -44.70 -44.20 -43.60

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt — Change from — Sept. 23 Sept. 16 Sept. 9 5.21¾ Soy ﬂour 23.30 @ 23.75 -1.14@-0.93 -2.37 @-2.01 5.34¼ Bulk 24.75 @ 25.30 -0.93@-1.14 -2.01 @-2.37 5.39¾ Sacked 5.42 Corn meal 5.10 4.89¾ $ per cwt — Change from — Sept. 23 Sept. 16 Sept. 9 11.26 23.20@ 27.28 -1 @ -1.07 -1.84 @-1.97 11.35½ Chicago, bulk 11.42½ Chicago, sacked 24.97@ 29.11 -1 @ -1.07 -1.84 @-1.97 11.44 New York, bulk 24.87@ 29.01 -1 @ -1.07 -1.84 @-1.97 11.47¼ New York, sacked 27.29@ 31.40 -1 @ -1.07 -1.84 @-1.97 11.36 313.20 317.00 318.50 321.10 321.90 323.10

Rice
offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash Sept. 23 Sept. 16 Sept. 9 ago Long grain 28.00@29.00 — +2.50 18.50 Medium grain 35.50@36.00 — — 25.50 Parboiled 32.50@36.00 — +3.00 21.50 Second heads, bulk 16.50@17.00 — +0.50 16.00 Brewers 14.00@16.00 — — 14.00 f.o.b. mills, $ per ton Rice millfeed 80.00 — +5.00 25.00 Rice bran 170@175 +20.00 +20.00 70.00 Rice hulls 30.00 — — 2.00 U.S.D.A. 2011 crop world price milled - $ per cwt Long grain 23.06 — — 16.56 Medium/short grain 22.75 — — 16.32 Broken 16.32 — — 11.72 C.B.O.T. rough rice futures - $ per cwt November 16.48½ -1.40½ -1.84½ 12.09 January 16.79 -1.38½ -1.84 12.35 March 17.06½ -1.38 -1.82 12.61 May 17.34 -1.35½ -1.81½ 12.89

Oats
— Change from — Minneapolis Sept. 23 Sept. 16 Sept. 9 Food grade ﬂakes, f.o.b., bagged, $ per cwt 30@30.50 -25c -25c Milling quality oats, No. 2 heavy, $ per bu 3.51½ -14c -16¾c Oat hulls, $ per ton 25@35 — —

FOODBUSINESS NEWS

September 27, 2011

Food Business News - September 27, 2011

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