Milling & Baking News - April 13, 2004 - 43

I N G R E D I E N T

shortening products were mixed.
Most buyers were unwilling to do
business until after last Thursday's U.S.
Census Bureau fats and oils report and
U.S. Department of Agriculture export
sales and supply/demand reports. The
wait paid off for buyers, as nearly all the
data indicated increased soybean oil supplies, at least in the short term. Census
reported February soybean oil stocks at
1.988 billion lbs, up more than 42 million
from January. The U.S.D.A. put soybean
oil exports at minus 3,200 tonnes for the
week ended April 1, well below trade expectations. U.S.D.A. also estimated 200304 soybean oil ending stocks at 1,021 million lbs, up 10 million from a month ago.
As futures prices declined, buying interest increased. Major buyers had soybean
oil needs well covered through the second quarter, and 50% in the third quarter.
Basis levels for shortening products tied
to soybean oil futures were mixed, as cottonseed oil declined, sunflowerseed oil
rose and canola oil and soybean oil were
unchanged. Cash prices consequently
declined for all but sunflowerseed oil,
which held steady. Peanut oil dropped 3c
per lb, still pressured by supplies from
India at the U.S. Gulf. Prices of the tropical oils, palm, palm kernel and coconut,
all rose. Animal fat products were mixed.
Rumors again surfaced about several
cargoes of soybean oil en route to the U.S.
from South America. They were unconfirmed, and discounted by some brokers
as "too early." MBN

Soy Flour
Bookings of soy flour remained active
last week, although most buying was on
a spot basis. Prices declined.
Nearby buying remained brisk as
prices came off their highs early last
week, after soybean meal futures hit a 30year high. Bakers still were reluctant to
add longer-term coverage at current
price levels. While larger buyers had the
majority of their needs covered into fall,
medium and smaller users had less than
60% coverage and were active buyers
when soybean meal futures prices
dipped, processors said. Farmers continued to sell soybeans and processors had
ample supplies on hand. Some major
soybean processors closed plants several
days over the Easter weekend because of
poor crush margins. But the more specialized soy flour operations took minimal down time for the holiday and continued to turn out as much soy flour as
capacity would allow. MBN

Corn Meal
Corn meal sales were strong and shipments active across all product categories
last week. Prices were mostly steady.
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Demand for flaking grits from readyto-eat breakfast cereal manufacturers
was strong. Snack meal volume increased slightly. Sales of brewer's grits
and corn flour were steady. Mill sources
said most buying remained on a spot basis, as nearby corn futures prices ended
the holiday-shortened week even with
the previous week. There was minimal
longer-term coverage added as many
bakers still considered corn prices to be
too high. MBN

Corn & Soy Futures
The second consecutive week of major
government grain reports and a holidayshortened trading period provided plenty
of fuel for soybean and corn futures.
On Thursday, the last trading day of the
week, seemingly bullish soybean supply/
demand data from the U.S. Department
of Agriculture provided only brief support. May soybean futures tumbled 28c
per bu for the day, closing below $10 per
bu for only the second time since March
18 and losing nearly 6% in value for the
week. The U.S.D.A. lowered its 2003-04
U.S. soybean ending stocks forecast by 10
million bus to 115 million, the smallest in
27 years, and dropped its Brazil soybean
crop estimate to 56 million tonnes.
Corn futures fared considerably better,
posting slight gains for the week. With
similar bullish report data of lower ending stocks, positive export sales and underlying strong demand, corn futures
held unchanged to slightly higher Thursday, resisting pressure from soybeans. MBN

Spot Soybean Oil

W E E K

Oats
Bookings of food grade oat flakes were
steady but mostly for spot needs last
week. Prices were steady to strong.
Demand from hot cereal makers began
to diminish as warmer spring weather
became more widespread. Ready-to-eat
cereal makers continued to cover mostly
spot needs as many considered prices too
high to lock in coverage before new crop
planting begins in Canada in early May.
Agriculture and Agri-Food Canada recently estimated 2004 Canadian oat
seedings down about 2% from 2003. A
week earlier the U.S. Department of Agriculture projected oat seedings for harvest
down 7% in the U.S.
Oat mill running times were four to six
days last week as some mills shut down
Good Friday and the Easter weekend. MBN

Sweeteners
Sweetener business appeared to be
fairly minimal last week in advance of the
Good Friday-Easter holiday weekend,
when the U.S.D.A. made an allotment announcement.
A disappointment for the sugar sector
came Good Friday, when the U.S.D.A. announced the overall allotment quantity
(O.A.Q.) for domestic sugar was officially
reduced to 8,250,000 short tons, raw
value, from the 8,550,000 tons announced
last Aug. 13. This action followed a
U.S.D.A. review of the latest estimates of
sugar consumption, stocks, production
and imports and eliminates the 300,000-

Oats

Decatur, Ill., bulk cents per lb
April 8

Week's
change

Oat flakes, food grade, f.o.b.
Minneapolis, bagged, $ per cwt 20@20.25
Milling quality oats, No. 2 heavy,
delivered Minneapolis, $ per bu
1.94
Oat screening, clean out,
oats unground, $ per bu
.80@1.10
Oat hull, ground hulls only, $ per ton 10@15

-
-13/4 c
-
-

Spot Shortening
Bulk, cents per lb

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
April 9
Week's
Delivery
close
change
May
31.88
-0.76
July
31.78
-0.87
August
31.54
-0.76
September
30.97
-0.72
October
29.35
-0.43
December
28.38
-0.27

Year
ago
21.97
22.09
21.98
21.73
21.30
21.02

Soybean oil, Decatur
Loose lard, Chicago
Edible tallow, Chicago
Cottonseed oil, Miss. PBSY
Palm oil, ports
Palm kernel oil, ports
Coconut oil, West coast
Peanut oil, Southeast
Corn oil, Decatur
Sunflowerseed oil, Midwest
Canola oil, Midwest

April 8
34.00
22.50
23.00
36.00
28.75
36.50
35.00
61.00
32.00
33.75
36.50

Week's
change
-.75
-1.00
+1.00
-2.00
+.50
+.50
+1.00
-3.00
-
-
-1.00

Milling & Baking News, April 13, 2004 / 43

Year
ago
22.75
16.50
18.25
48.00
21.50
22.50
20.25
53.00
29.75
33.75
28.00

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Milling & Baking News - April 13, 2004

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