Milling & Baking News - June 8, 2004 - 39

I N G R E D I E N T

with wheat prices about 60@70c a bu
above those of a year ago, buyers were
less than enthusiastic. The prospect of
higher prices asked for private label flour
could further narrow the price gap between private label and the national and
regional brands, with the advantage going to the branded product. MBN

Bakery Shortening
Bookings of bakery shortening were
light last week. Price changes were erratic, with soybean oil and those oils valued in relation to soybean oil rising
sharply at the week's outset but giving
back most of the ground taken as the
week wore on.
Limit-up moves in soybean futures
prices at the week's outset exerted a commanding upward pull on soybean oil.
But as the rally in soybeans fizzled, soybean oil prices dropped sharply. Most
buyers could afford to stand aside to
watch the pyrotechnics. They already
had covered most if not all of their needs
through September. Market volatility
dampened any interest there might have
been in contracting for October-December needs.
Factors in the weakness seen in soybean oil as the week wore on were confirmed imports of foreign supplies and
rumors about Chinese cancellations of
soybean imports.
Palm oil prices dropped, also on concerns about possible disruption in the
China trade. Ideas were that U.S. imports
of palm oil were up from 30% to 40% from
a year ago as several food companies test
the use of that oil as a trans-fat solution.
Domestic shipments of soybean oil remained strong. Foreign demand for U.S.
soybean oil remained abysmally weak. MBN

was lacking.
New contracting was limited after
limit-gains in corn futures last Tuesday
but increased somewhat after sharp
losses later in the week. MBN

Corn & Soy Futures

Corn Meal
Sales of corn meal were steady across
all categories last week. Prices advanced
for the third consecutive week.
Demand for flaking grits from breakfast cereal manufacturers remained
strong, as were snack meal shipments.
Sales of brewer's grits were seasonally
strong. Demand for corn flour, however,
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for Chinese soy processors would decrease demand. Export sales were 54,900
tonnes the week ended May 27, above
expectations. Technical factors sent the
soy complex higher at the week's end. MBN

Oats

The weather market has come early
and hard this year, providing ample volatility to corn and soybean futures.
Excessive rain persuaded many that
corn production might not reach record
levels, driving prices limit up early last
week. Despite widespread rainfall, corn
planting reached 100% completion. The
crop was 90% emerged in the 18 major
states as of May 31. Condition of the corn
crop deteriorated slightly, to 68% rated
good to excellent versus 71% a week earlier. Late in the week, forecasts for warm,
dry weather sent futures prices lower on
ideas farmers still had time to replant.
Export sales during the week ended May
27 at 688,300 tonnes, well below expectations, added pressure.
Soybeans fell victim to the same ideas
about weather, although traders saw soybean acres possibly increasing because of
the crop's shorter growing season. As of
May 30, the U.S. soybean crop was 77%
planted, slightly ahead of the 72% recent
five-year average, and 55% emerged,
well ahead of the 43% average. Ideas that
China's rejection of fungicide-tainted
soybeans from Brazil could turn into exports for the U.S. were bullish early last
week. But the market turned sour later on
concern that severe financial problems

Spot Soybean Oil

Bookings of food grade oat flakes were
steady last week. Prices were unchanged.
New business mostly was fill-in buying as oat futures saw double-digit gains,
following corn, on Tuesday, but traded
lower as the week progressed. Several
large buyers already had booked coverage through the end of the year, taking
advantage of oat futures prices two
weeks back that were at recent lows.
Other buyers who tend not to book far in
advance continued to buy on a spot basis
when prices dipped. Shipments were active as oat mills worked to catch up from
downtime over Memorial Day.
Oat seeding in Canada was about 80%
complete in Saskatchewan, where rainfall benefited the crop, and in Manitoba,
where excessive rainfall was detrimental.
In the U.S., seeding of 2004 crop oats
was completed. The crop was 92%
emerged, versus 87% for the recent fiveyear average. Condition as of May 31 improved from a week earlier, with 60%
rated good to excellent, versus 58%. MBN

Sweeteners
Highlighting developments in sweeteners last week, steady but slow new
crop sugar contracting took place. Spot
numbers also edged lower, although in-

Oats

Decatur, Ill., bulk cents per lb
June 4

Week's
change

Oat flakes, food grade, f.o.b.
Minneapolis, bagged, $ per cwt 19.25@19.50
Milling quality oats, No. 2 heavy,
delivered Minneapolis, $ per bu
1.631/2
Oat screening, clean out,
oats unground, $ per bu
.80@1.10
Oat hull, ground hulls only, $ per ton 10@15

Soy Flour
Bookings of soy flour were limited last
week after limit gains in soybean futures
on Tuesday. Soy flour prices moved
higher, ending a three-week skid.
Processors reported plenty of inquiries
from buyers. But there was little interest
in actual contracting. As futures prices
dropped after the early week surge, buying interest became even lighter, typical
of a declining market as buyers wait for
even lower prices.
Shipments were brisk. MBN

W E E K

-
-11/4 c
-
-

Spot Shortening
Bulk, cents per lb

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
June 4
Week's
Delivery
close
change
July
28.41
+0.36
August
27.98
+0.43
September
27.21
+0.26
October
25.88
+0.18
December
25.09
-0.08
January
25.04
-0.21

Year
ago
22.32
22.31
22.22
21.86
21.71
21.66

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

June 4
30.50
21.50
19.50
31.50
24.50
35.00
34.25
58.00
31.00
34.50
32.75

Week's
change
+.25
-
-.25
+.50
-1.00
-.75
-3.25
-2.00
-1.00
-
-

Milling & Baking News, June 8, 2004 / 39

Year
ago
23.25
19.50
19.50
42.00
22.50
22.50
21.50
57.00
30.50
33.75
27.25

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Milling & Baking News - June 8, 2004

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