Food Business News - March 13, 2012 - 45

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

Soy Products
Soy ﬂour sales were steady with a week earlier. Prices advanced, encouraging already mostly month-to-month buyers to continue that pattern. Processing was active but not at capacity. New orders may be delivered in two to three weeks. Carryover of U.S. soybeans on Sept. 1, 2011, was projected at 275 million bus, unchanged from the February projection but up 60 million bus, or 28%, from 215 million bus in 2011, the U.S. Department of Agriculture said in its March 9 World Agricultural Supply and Demand Estimates. The U.S.D.A. 2012 soybean carryover number was above the average pre-report trade estimate of 257 million bus. The trade initially called the report bearish, but soybean futures climbed to 5½-month highs on Friday, in part pulled up by talk China was buying corn. Soybean futures ended the week up about 5c a bu. Key U.S. soybean numbers for 2011-12 were unchanged from February with total supply at 3,286 million bus, crushings at 1,615 million bus, exports at 1,275 million bus and total use 3,011 million bus. But the average farm price of soybeans was projected to range from $11.40@12.60 a bu in 2011-12, up from $11.10@12.30 a bus projected in February, $11.30 in 2010-11 and $9.59 in 2009-10. World soybean production in 2011-12 was projected at 245.07 million tonnes, down 3% from February and down 7% from 201011, mainly the result of a 3.5-million-tonnecut for Brazil, at 68.5 million tonnes, and a 1.5-million-tonne reduction for Argentina, at 46.5 million tonnes. Global ending stocks were forecast at 57.3 million tonnes, down 5% from February and down 17% from 2010-11. U.S. soybean net export sales during the week ended March 1 for delivery in 2011-12

surged 85% from a week earlier to 1,015,200 tonnes with another 630,800 tonnes sold for delivery in 2012-13, the U.S.D.A. said. China was the major buyer for both periods. Although well above trade expectations for the week, net sales for the marketing year to date were 25% behind last year’s pace. FBN

February, $5.18 in 2010-11 and $3.55 in 2009-10. Net export sales of U.S. corn during the week ended March 1 for delivery in 201112 were 445,700 tonnes, down 35% from a week earlier, the U.S.D.A. said. Sales were below trade expectations. FBN

Corn Products
Corn meal sales remained steady last week and mostly on a month-to-month basis, although declining prices drew some attention. Some millers noted buyers had less than average coverage for the second half of 2012, but were in no hurry to book material. Corn mills ran about ﬁve to 5½ days last week. The U.S. corn carryover on Sept. 1, 2012, was projected at 801 million bus, unchanged from the February forecast but down 327 million bus, or 29%, from 1,128 million bus in 2011, the U.S.D.A. said in its March 9 WASDE. The U.S.D.A. 2012 corn carryover number was above the average trade estimate of 784 million bus and initially was called bearish, but corn futures traded higher for the day on talk China was buying corn and on technical trading. For the week, corn futures ended down about 7@12c a bu. Except for a narrowing of the projected 2011-12 average price, all U.S. corn supply and demand data were unchanged from February. Total supply for 2011-12 was projected at 13,506 million bus; food, seed and industrial use was projected at 6,405 million bus (including corn for ethanol at 5,000 million bus and food and seed use at 1,405 million bus); feed and residual use was projected at 4,600 million bus; exports were projected at 1,700 million bus and total use was forecast at 12,705 million bus. The average farm price of corn was projected to range from $5.90 to $6.50 a bu, compared with $5.80@6.60 a bu in

Oats
Sales of food-grade oats ﬂakes were steady last week. Prices were slightly lower reﬂecting the drop in oats futures values and ongoing sluggish demand. With the hot breakfast cereal season drawing to a close, some millers said they expected to see at least a 10% decline in sales volume from the previous season. Concern persisted about U.S. and Canadian farmers’ willingness to plant oats in 2012 because of signiﬁcant price advantages for most other crops. FBN

Rice
U.S. milled rice prices were unchanged last week after showing mixed changes a week earlier. Rice byproduct prices were mostly lower. U.S.D.A. 2011 crop world milled rice prices were unchanged. CME Group rough rice futures were moderately lower last week. The U.S. rice carryover on Aug. 1, 2012, was projected at 40.5 million cwts, up 1 million cwts from February but down 8 million cwts from a year earlier. Imports were projected at 20 million cwts, up 1 million cwts from February. The average farm price was projected to range from $13.90 to $14.50 a cwt in 2011-12, unchanged from February and compared with $12.70 in 2010-11 and $14.40 a cwt in 2009-10. U.S. rice export sales during the week ended March 1 for delivery in 2011-12 were 26,700 tonnes, down 33% from the prior week, the U.S.D.A. said. FBN

Chicago corn and soy futures
Corn Futures $ per bu March May July September December March Soybeans March May July August September November Soybean Meal March May July August September October

Soy products

Rice
offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash Mar. 9 Mar. 2 Feb. 24 ago Long grain 25.00@27.00 — -0.50 27.50 Medium grain 27.00@27.50 — -2.00 35.00 Parboiled 27.50@33.00 — -1.00 34.00 Second heads, bulk 18.00@18.50 — +1.00 14.50 Brewers 17.00 — +3.00 10.00 f.o.b. mills, $ per ton Rice millfeed 80.00 … … 60.00 Rice bran 120.00@140.00 -10.00 -20.00 125.00 Rice hulls 30.00@35.00 -5.00 … 15.00 U.S.D.A. 2011 crop world price milled - $ per cwt Long grain 17.99 — — 19.62 Medium/short grain 17.76 — — 19.29 Broken 12.73 — — 13.88 C.B.O.T. rough rice futures - $ per cwt March 13.93 -0.33½ -0.27½ 12.79 May 14.15½ -0.35 -0.31 13.01 July 14.42½ -0.34½ -0.30½ 13.30 September 14.66½ -0.33½ -0.28½ 14.04

Defatted, f.o.b. Midwest plant, $ per cwt — Change from — Year — Change from — Mar. 9 Mar. 2 Feb. 24 ago Mar. 9 Mar. 2 Feb. 24 Soy ﬂour 6.54 -5 +13¼ 6.59¼ Bulk 25.40 @ 26.44 +.03@ +.18 +1.20 @+1.34 6.45 -10 +1 6.64¼ Sacked 26.40 @ 28.44 +.03@ +.18 +1.20 @+1.34 6.44 -12¼ -2½ 6.70¾ Corn meal 5.96 -8½ +7¾ 6.22¾ 5.62½ -7½ +4½ 5.77¾ $ per cwt 5.72½ -7½ +4½ 5.84¼ — Change from — $ per bu Mar. 9 Mar. 2 Feb. 24 13.31¾ +3½ +52¾ 13.26½ Chicago, bulk 23.50@ 26.05 -.17@-.20 +.20@+.15 13.37¾ +4¾ +51 13.34½ Chicago, sacked 25.27@ 27.88 -.17@-.20 +.20@+.15 13.44¾ +4½ +49½ 13.42½ New York, bulk 25.17@ 27.78 -.17@-.20 +.20@+.15 13.37½ +7 +48 13.36¼ New York, sacked 27.59@ 30.17 -.17@-.20 +.20@+.15 13.18¾ +6½ +40¼ 13.19 Oats 13.05¼ +7¼ +34½ 13.00 — Change from — $ per ton Mar. 9 Mar. 2 Feb. 24 358.60 +1.30 +25.00 346.10 Minneapolis 362.70 +3.60 +26.50 350.00 Food grade ﬂakes, f.o.b., 28.50@29 -.25 -.25 364.10 +4.20 +26.00 353.30 bagged, $ per cwt 362.10 +4.10 +24.90 352.60 Milling quality oats, No. 2 heavy, 3.22½ -18¼c -22c 358.00 +4.10 +22.50 348.20 $ per bu 25@35 — — 350.50 +3.10 +19.20 339.70 Oat hulls, $ per ton

March 13, 2012

FOODBUSINESS NEWS

Food Business News - March 13, 2012

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