Food Business News - June 4, 2013 - 61

Ingredient Markets
Market commentary for one-week period ended May 31, 2013

Soy Products

Corn Products

Soy flour prices advanced last week,
pulled higher by sharp gains in the July
soybean meal contract. Dealings were
seasonally slow, and deliveries slowed to
about one week forward compared with
the recent pace of two to three weeks.
Soybean and soybean meal futures
travelled a sharp upward trajectory last
week, despite a pause for profit-taking
on Thursday. News last Wednesday that
China cancelled a purchase of 147,000
tonnes of soybeans for delivery in 2012-13
was discouraging, although its impact was
lessened by subsequent news that China
purchased 120,000 tonnes for delivery in
2013-14.
New-crop soybean futures made strong
gains, reflecting ongoing concerns about the
slower pace of planting in 2013 compared
with previous years. Of special interest was
the outlook for continued heavy rains that
may put a damper on additional fieldwork.
In the 18 main soybean-growing states,
44% of the crop was planted as of May 26,
the U.S. Department of Agriculture said in
its latest Crop Progress report, still lagging
far behind 61% as the five-year average and
the 87% planted on the same date a year
ago. Soybean emergence was 14%, down
from 30% as the five-year average for the
date and compared with 57% a year ago.
The U.S.D.A. reported a net reduction of
108,000 tonnes in export sales for delivery
in 2012-13 in the week ended May 23. It also
reported net sales of 756,600 tonnes for
delivery in 2013-14. Activity for the two years
combined was within analysts’ expectations
that ranged from 300,000 to 800,000 tonnes.
Net export sales of U.S. soybean meal for
the week were 149,200 tonnes for 2012-13 and
40,900 tonnes for 2013-14, the U.S.D.A. said. FBN

Cornmeal prices firmed along with other
items such as corn flour, large flaking grits
and extruded products. Prices of brewers’
grits strengthened, reflecting seasonal
factors as well as higher corn futures
prices. Hominy feed prices were steady.
With the exception of only a small gain
in nearby July, corn futures prices moved
up significantly, reflecting concerns that
continued wet weather would slow the
planting of the final 14% of the crop not
in the ground as of May 26. By the end of
the first week in June, producers in the
northern reaches of the Corn Belt may be
forced to switch to soybeans or abandon
acres if corn planting cannot be completed.
The touch-and-go last-minute planting
scenario may lead to lower-than-optimal
yields, which fed bullish sentiment in the
futures market.
Planting progress for the 2013 crop
was gaining on the five-year average as
producers worked to use every available
moment to seed their fields. They faced
intermittent delays because of persistent
rain earlier. The U.S.D.A. said 86% of the
crop was planted as of May 26 compared
with the five-year average of 90% and
down from 99% planted by the same date a
year ago, when dry, warm weather moved
planting well ahead of the average pace.
Net export sales of U.S. corn in the week
ended May 23 exceeded trade expectations
of between 450,000 to 800,000 tonnes. The
U.S.D.A. reported net sales of 85,700 tonnes
for 2012-13 and 789,600 tonnes for 2013-14. FBN

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

June 4, 2013

Oats
Food-grade oats flakes prices were
firmer, reflecting gains in oats futures prices

Soy products

Defatted, f.o.b. Midwest plant, $ per cwt
— Change from — Year
— Change from —
May 31 May 24 May 17
ago
May 31
May 24
May 17
Soy ﬂour
6.62
+4¾
+9¼
5.51½ Bulk
34.35 @ 34.83 +.86@+1.00 +1.52 @+1.16
5.97¼ +30½ +41¼ 5.14¾ Sacked
35.35 @ 36.83 +.86@+1.00 +1.52 @+1.16
5.67¼ +30¾ +47¾
5.10
Corn meal
5.77
+29½
+47
5.21
5.82¾ +27½ +45¼ 5.28¾ $ per cwt
5.84½ +21¾
+40
5.36
— Change from —
$ per bu
May 31
May 24
May 17
15.10 +33¾ +61½ 13.44¼ Chicago, bulk
26.14@ 30.37 +.10@+.10 +.20@+.20
14.37¾ +35¼ +59¼ 13.18½ Chicago, sacked 27.91@ 32.46 +.10@+.10 +.20@+.20
13.47¼ +47¼ +57¾ 12.85½ New York, bulk
27.81@ 32.36 +.10@+.10 +.20@+.20
13.04¼ +56½
+76
12.58 New York, sacked 30.23@ 34.77 +.10@+.10 +.20@+.20
13.10 +55¾ +74¾ 12.60¾
13.10¼ +52¾ +70¾ 12.43¾ Oats
— Change from —
$ per ton
May 31
May 24 May 17
447.20 +19.00 +22.10 394.50 Minneapolis
425.80 +20.60 +23.80 381.10 Food grade ﬂakes, f.o.b.,
32@32.25
+.25
—
406.00 +24.10 +32.00 368.20 bagged, $ per cwt
387.40 +29.40 +38.80 358.20 Milling quality oats, No. 2 heavy,
3.99¼
9¼c
-1¼c
384.90 +29.40 +38.40 354.00 $ per bu
25@35
—
—
385.70 +28.80 +37.80 351.80 Oat hulls, $ per ton

even as seasonal demand for hot breakfast
cereals waned.
The most recent Crop Progress report
from the U.S.D.A. said 92% of the oats crop
was planted by May 26 in the nine main
oats-growing states, close to the five-year
average of 95%. Last year, the crop was
100% planted as of the same date.
The crop was 76% emerged, down from
87% as the five-year average and 98% by
the same date a year ago, the U.S.D.A.
said. Twenty-eight per cent of the crop was
headed, compared with 32% as the five-year
average and 38% a year ago.
The condition of the crop improved in
the latest week, the U.S.D.A. said. Fiftytwo per cent of the crop was rated good to
excellent, up from 47% the previous week.
The percentage rated very poor to poor fell
to 13% as of May 26, down from 15% the
previous week.
Oats futures rose modestly, stabilizing
after significant losses in mid-May. FBN

Rice
U.S. milled rice and rice byproducts
prices were unchanged, as were prices
posted by the U.S.D.A. for world milled rice
and world rough rice.
The latest crop progress report from
the U.S.D.A. indicated 90% of the rice crop
was planted as of May 26 in the six major
states compared with 93% as the five-year
average. Seventy-six per cent of the crop
was emerged, about in line with the 78%
five-year average. Fifty-nine per cent of
the crop was rated in good to excellent
condition, up from 54% a week earlier.
The U.S.D.A. reported net export sales
of rice during the week ended May 23 at
34,000 tonnes for 2012-13 and 6,000 tonnes
for 2013-14. FBN

Rice
offers f.o.b. mills, $ per cwt, bagged
— Change from — Year
Cash
May 31
May 24 May 17 ago
Long grain
28.00@29.50
—
— 24.50
Medium grain 28.50@28.75
—
— 27.00
Parboiled
30.50@33.00
—
— 27.75
Second
heads, bulk 18.00@18.50
—
— 18.00
Brewers
14.50@16.50
—
— 17.00
f.o.b. mills, $ per ton
Rice millfeed 70.00@75.00
—
— 60.00
Rice bran
170.00@195.00
—
— 115.00
Rice hulls
20.00@25.00
—
— 15.00
U.S.D.A. 2012 crop world price milled - $ per cwt
Long grain
18.95
—
-0.13 18.27
Medium/short
grain
18.63
—
-0.12 18.05
Broken
13.41
—
-0.09 12.93
C.B.O.T. rough rice futures - $ per cwt
July
15.29½
-0.42 +0.06 14.04
September
15.49
-0.17 +0.45 14.31
November
15.61
-0.21½ +0.42 14.57
January
15.81
-0.16½ +0.44½ 14.80

FOODBUSINESS NEWS

®

61
Food Business News - June 4, 2013

Table of Contents for the Digital Edition of Food Business News - June 4, 2013
