Food Business News - March 13, 2012 - 38

Ingredient Markets
Market commentary for one-week period ended March 9, 2012

Sweeteners
Sweetener markets remained quiet last week ahead of Friday’s U.S. Department of Agriculture World Agricultural Supply and Demand Estimates. Reﬁned sugar prices were unchanged, although some sellers suggested there was a ﬁrmer, or at least steadier, tone to the market after several weeks of weakness. Corn sweetener markets were quiet and routine. Pricing of bulk reﬁned beet sugar for 2013 was unchanged at around 42@46c a lb f.o.b. Midwest. Pricing for 2014 was unchanged from 35@42c a lb f.o.b. with some offers still near 40c. Spot and nearby pricing for bulk reﬁned beet and cane sugar also was unchanged at 51@51.5c a lb f.o.b. across all regions. Trading was light with most business for 2012 completed some time ago and new activity mostly of a ﬁll-in nature only. The mild winter and recent warmer weather has created some concerns about the quality of remaining sugar beet piles in the Upper Midwest, which may result in some decline in sugar output. In its March WASDE, the U.S.D.A. made adjustments to both 2011-12 supply and use projections with the net result a 171,000-ton, raw value, increase in carryover on Oct. 1, 2012, at 1,047,000 tons. The ending stocksto-use ratio still was an unsustainable 9%, up from 7.7% in February but well below 12.7% last year and the “target” of 14% to 15%. The U.S. sugar supply in 2011-12 was

projected at 12,702,000 tons, up 381,000 tons from February as the result of a 30,000-ton increase in U.S. cane sugar production and a 351,000-ton increase in imports. Imports from Mexico were forecast at 1,115,000 tons, up 301,000 tons, or 37%, from February but down 593,000 tons, or 35%, from 2010-11. U.S. sugar use in 2011-12 was projected at 11,655,000 tons, up 210,000 tons from February and up 60,000 tons from 2010-11. The full increase from a month ago was in food use of sugar. The U.S.D.A. projected 2011-12 sugar ending stocks in Mexico at 883,000 tonnes, down 26,000 tonnes from February but up 123,000 tonnes from 760,000 tonnes in 201011. Increases in 2011-12 beginning stocks and imports combined with a decrease in domestic use were more than offset by a projected increase in exports. Mexico indicated it may publish a previously announced 250,000-tonne sugar import quota this week to offset tight supplies and rising prices. Mexican sugar production for the season to date through March 5 was down 14% from the same period a year ago. Imperial Sugar Company said it had reached an agreement to sell its 50% interest in Wholesome Sweeteners, Inc., to an afﬁliate of Arlon Group, a private investment group, with closing in April. FBN

Edible Oils
Bookings of edible oils and fats expanded

last week. Prices were mixed. Soybean oil prices inched higher. Soybean oil futures were weaker much of the week but pulled ahead during the ﬁnal session. The soybean oil cash basis was soft with reﬁners seeking outlets amid uninspiring domestic demand from food processors and biodiesel manufacturers. The soft soybean oil basis lured several food processors into the market, and by the week’s end, it was estimated major buyers had booked their basis needs through the second quarter; July-September basis coverage was estimated at about 30%. Early-week weakness in soybean oil futures prices provided buyers the opportunity to extend ﬂat ownership to about 60 days. The U.S. Department of Agriculture in its March 9 World Agricultural Supply and Demand Estimates raised its forecast for 2011-12 U.S. soybean oil ending stocks to 2,415 million lbs, up 100 million lbs from the February projection and nearly unchanged from 2,425 million lbs in 2010-11. The upward adjustment from February was due to a 100-million-lb reduction in the forecast domestic food, feed and other industrial usage of soybean oil to 14,000 million lbs. The U.S.D.A. forecast the average price of soybean oil in 2011-12 at 50.5@54.5c a lb, unchanged from February but down from 53.2c per lb in 2010-11. A strong crude oil market and worries oil prices may spike because of world political uncertainties loomed in the background. 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 Mar. 9 Mar. 2 Feb. 24 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Mar. 9 Year ago Midwest beet 51.00 @ 51.50 — — 55.00 23.375 27.875 net 173/8@ 213/8 153/8@ 193/8 33.85@37.85 26.625 East Paciﬁc beet 51.00 @ 51.50 — -1.00 55.00 Midwest 24.925 29.425 net 32.85@36.85 28.175 Midwest Cane* 51.00 @ 51.50 — — 58.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 25.125 29.625 net *Spot raw plus 7% plus 13.4c with 2% cash discount. Southeast 187/8@ 227/8 167/8@ 207/8 35.85@39.85 28.375 West 24.625 29.125 net Southwest 18½@ 22½ 16½@ 20½ 27.875 Raw cane 25.325 26.825 net West 193/8@ 233/8 173/8@ 213/8 28.575 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 April-June July-September October-December January-March April-June Mar. 9 34.25 34.25 34.45 33.05 33.15 32.65 — Change from — Mar. 2 Feb. 24 -.75 +.30 -.75 +.30 -.05 +.45 +.05 -.70 -.10 +.05 -.25 -.35 Year ago 40.00 40.00 40.75 37.90 36.10 36.00

Chicago soybean oil futures
Bulk in tank cars, cents per lb Mar. 9 — Change from — Delivery close Mar. 2 Feb. 24 March 53.95 +.19 -.34 May 54.27 +.19 -.38 July 54.67 +.19 -.38 August 54.83 +.21 -.32 September 54.98 +.24 -.25 October 55.11 +.26 -.17 Year ago 55.49 55.90 56.47 56.61 56.71 56.65

Edible oils
Bulk, cents per lb Mar. 9 Soybean oil, Decatur Loose lard, Chicago Edible tallow, Chicago Cottonseed oil, Miss. PBSY Palm oil, ports Palm kernel oil, ports Coconut oil Peanut oil, Southeast Corn oil, Decatur Sunﬂowerseed oil, Midwest Canola oil, Midwest 53.00 55.50 56.00 55.75 52.00 54.25 65.00 96.00 59.25 84.00 58.25 — Change from — Year Mar. 2 Feb. 24 ago +.25 +3.00 +2.25 +.25 +.25 — -2.00 — +1.25 — — -.75 53.50 +4.50 52.75 +2.50 52.25 -.25 +.75 54.50 61.25

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

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. March 52.70 @52.95 April 52.86 @53.11 May 53.02 @53.27 June 53.22 @53.47 July 53.92 @54.17 August 54.08 @54.33 September 54.23 @54.48 Western points 51.95 @52.45 52.11 @52.61 52.27 @52.77 52.47 @52.97 53.17 @53.67 53.33 @53.83 53.48 @53.98

+2.75 65.75 -2.00 80.00 +1.00 78.00 +1.00 73.75 — +.25 90.00 59.50

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March 13, 2012

Food Business News - March 13, 2012

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