Food Business News - February 26, 2013 - 60

Ingredient Markets
Market commentary for one-week period ended February 22, 2013

Soy Products
Soy flour prices moved higher last week
in active trading, following the higher
prices for most of the week in soybean and
soybean meal futures. Bookings remained a
solid three weeks forward.
Soybean futures surged until Friday,
when profit-taking trimmed gains. The
March soybean contract gained almost
37c on the week, Soybean futures prices
were supported by concerns over dryness
in Argentina and fresh export sales of U.S.
soybeans to China.
The U.S. Department of Agriculture’s
Grains and Oilseed Outlook released on Feb.
22 forecast higher soybean production and
larger ending stocks in 2013-14 than in 201213, and this seemed to buttress ideas soybean
prices needed to be adjusted downward after
months of gyrating up and down.
The U.S.D.A. said soybean supplies “for
2013-14 are projected a 3,545 million bus,
up 11% from 2012-13, as larger soybean
production more than offsets lower beginning
stocks and projected imports. Soybean
production is projected 13% higher at 3,405
million bus, mostly reflecting yield gains
above last year’s drought-reduced level.”
The pattern of U.S. soybeans being in
high world demand sputtered Friday, when
weekly export sales were sharply below
trade expectations of 500,000 to 850,000
tonnes for the week ended Feb. 14, 2013.
Net export sales data were made public on
Friday morning because of the Presidents’
Day holiday last Monday. The U.S.D.A.
reported a net sales reduction of 119,500
tonnes for 2012-13 and net sales of 62,000
tonnes (entirely to China) for 2013-14.
Soybean meal weekly export sales, though,
were well above trade estimates. The
U.S.D.A. said soybean meal export sales

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

60

were 236,100 tonnes for 2012-13 and 25,000
tonnes for delivery in 2013-14. Analysts
estimated export sales in the range of
100,000 to 200,000 tonnes. FBN

Corn Products
Demand for cornmeal and corn byproducts
last week was firm and improved from last
year at a time when the market usually is
relatively slow. Hominy feed demand was
steady as well with livestock producers
utilizing it as an ingredient in feed rations
during cold months. Brewers’ grits sales
were seasonally slow. Prices were steady
to weaker, in sync with corn futures that
traded weaker.
Corn futures followed a gyrating course
downward since the beginning of February,
fueled by a pattern of disappointing exports
because of high prices. Corn exports continued
to lag far behind levels of a year ago. But last
week saw only modest declines in futures
prices, which may be a pause in a downward
trajectory fed by ideas that supplies may
increase and prices will fall in 2013.
The market was considering the U.S.D.A.
prediction last week that 2013 corn production
will rebound from drought-reduced levels of
2012. A heavy snowstorm that blanketed the
hard red winter wheat region, so far stressed by
excessive dryness, was taken as an indication
that the drought may be moderating.
Joseph Glauber, the U.S.D.A. chief
economist, predicted a record corn crop
of 14.53 billion bus in 2013 on 96.5 million
acres. That area total was slightly less than
in 2012 but more than any other crop since
the 1930s. Under Dr. Glauber’s scenario,
corn prices would average about $4.80 a
bu in the 2013-14 crop year beginning in
September, as yields return more normal
trend lines.

FOODBUSINESS NEWS

®

-8½
-12¾
-13½
-9¼
-10¼
-10¼

-18¾
-24½
-27¼
-11¾
-10½
-10¾

+36¾
+29
+24¼
+20½
+13
+5

+8¾
+7
+3½
+¾
-11½
-15¼

+17.50
+17.50
+16.30
+13.70
+9.50
+5.20

+4.50
+6.10
+5.80
+3.90
-1.50
-3.60

12.70¾
333.60
336.20
338.10
337.20
335.50
331.30

Oats
Minneapolis
Feb. 22
Food grade ﬂakes, f.o.b.,
bagged, $ per cwt
32@32.25
Milling quality oats, No. 2 heavy,
$ per bu
4.18
Oat hulls, $ per ton
25@35

Oats
Food-grade oats flakes prices remained
about steady last week amid continuing coldweather demand for hot breakfast cereals.
Oats futures prices posted modest
advances despite the downward trajectory
of other grain markets such as corn, which
tend to lead the oats market. FBN

Rice
U.S. milled rice prices were mostly
steady last week, with long-grain steady
to up $1 a cwt. U.S.D.A. posted prices for
milled and rough rice were unchanged in
the latest week.
Net export sales of U.S. rice in the week
ended Feb. 14 were 64,000 tonnes for 201213, down 31% from the previous week, the
U.S.D.A. said. FBN

Rice

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt
— Change from —
Feb. 22
Feb. 15
Feb. 8
6.40¾ Soy ﬂour
33.15 @ 33.35 +.88@ +.87 +.23 @ -.28
6.44 Bulk
34.35 @ 35.15 +.87@ +.88 -.28 @ +.23
6.46½ Sacked
5.88¼
Corn meal
5.58
5.68 $ per cwt
— Change from —
Feb. 22
Feb. 15
Feb. 8
12.79
25.14@ 29.24 -.15@-.17 -.35@-.41
12.86¾ Chicago, bulk
12.95¼ Chicago, sacked 26.91@ 31.33 -.15@-.17 -.35@-.41
26.81@ 31.23 -.15@-.17 -.35@-.41
12.89½ New York, bulk
12.78½ New York, sacked 29.23@ 33.64 -.15@-.17 -.35@-.41

— Change from — Year
Feb. 22 Feb. 15 Feb. 8
ago
6.90¼
6.84¼
6.71¾
5.73
5.52¾
5.63¼
$ per bu
14.61¼
14.43¾
14.29
13.89½
13.18
12.66¾
$ per ton
426.90
426.40
420.30
403.80
376.60
352.30

The U.S.D.A., in its Grains & Oilseeds
Outlook released on Feb. 22, forecast a strong
rebound for the 2013 corn crop after the worst
drought in 50 years significantly damaged
the 2012 crop. “Corn production in 2013 is
projected at a record 14,530 million bushels,
up 3,750 million bus, or 35%, from the droughtreduced 2012 crop,” the U.S.D.A. said.
“The 2013-14 corn supply is projected to
rise 28% to a record 15,187 million bushels
as the increase in production far outweighs
the year-to-year decline in beginning stocks
with the smallest carryin in 17 years,” the
U.S.D.A. said.
U.S. corn export sales during the
week ended Feb. 14 exceeded analysts’
expectations. The U.S.D.A. reported sales
of 361,800 tonnes for 2012-13 and of 20,100
tonnes for 2013-14. The trade had predicted
net export sales in the range of 100,000
tonnes to 300,000 tonnes. FBN

— Change from —
Feb. 15 Feb. 8
—

—

+9c
—

+2¼c
—

offers f.o.b. mills, $ per cwt, bagged
— Change from — Year
Cash
Feb. 22
Feb. 15 Feb. 8 ago
Long grain
27.50@29
0@+1 0@+1 25.50
Medium grain 28.25@28.50
—
—
29
Parboiled
30@33
—
— 28.50
Second
heads, bulk
18.50
—
—
17
Brewers
16@16.50
—
—
14
f.o.b. mills, $ per ton
Rice millfeed
...
...
...
...
Rice bran
205@225
— +5.00
140
Rice hulls
40
—
—
...
U.S.D.A. 2012 crop world price milled - $ per cwt
Long grain
18.40
—
-0.18 17.99
Medium/short
grain
18.09
—
-0.18 17.76
Broken
13.02
—
-0.13 12.73
C.B.O.T. rough rice futures - $ per cwt
March
15.58½
-0.25
-0.76 14.21
May
15.89
-0.26½
-0.78 14.47
July
16.18
-0.25
-0.75 14.73
September
15.59
+0.09
-0.30 14.95

February 26, 2013
Food Business News - February 26, 2013

Table of Contents for the Digital Edition of Food Business News - February 26, 2013
