Milling & Baking News - June 15, 2004 - 48

I N G R E D I E N T

W E E K

balances during the past few weeks, enthusiasm seemed to dim. Pricing, while
not well defined, appeared to firm
slightly, with Midwest and West coast
beet sugar moving up 0.50c a lb. No. 14
contracts showed little change; spot raws
were unchanged, and deferred steady to
15 off. Corn sweeteners were unchanged.
Midwest beet sugar participants withdrew to the sidelines. A number of processors had showed little or no enthusiasm for taking forward coverage before
the Department of Agriculture's O.A.Q.
(Overall Allotment Quantity) announcement, tentatively scheduled for some
time in July. While some had sought to
protect market share during the earlier
bookings, many in the trade were now
eager to back off. But there still were occasional reports of new accounts coming

into the market to inquire about new crop
coverage. The buyers voiced concern that
should the U.S.D.A. set the O.A.Q. at 7.7
million short tons, raw value, or lower,
sugar prices might move up significantly
from current levels.
Midwest beet sugar was said to have
traded in a range of 23½@24½c a lb f.o.b.
Midwest. But there were hints material
might again surface at lower levels to defend market share. South central and
Southeast numbers also appeared to
trade at 25@26c after earlier indicated
selling around 24½c.
The WASDE report, out a day early because of President Reagan's funeral,
showed little change from the preceding
month. Projected U.S. sugar supply and
ending stocks for fiscal year 2004-05 were
cut 23,000 tons, raw value, due to lower

Spot Raw Cane Sugar

Spot 42% HFCS

Bulk, delivered U.S. refineries, cents per lb

Delivered basis, cents per lb
June 10
Midwest
93/8 @ 97/8
Northeast
103/4 @ 111/4
Southeast
111/8 @ 115/8
Southwest
103/4 @ 111/4
West
113/4 @ 121/4

Year ago
93/8 @ 103/8
103/4 @ 113/4
111/8 @ 121/8
103/4 @ 113/4
113/4 @ 123/4

Variations in prices often tied to tank car versus truck deliveries.

f.o.b. plant, cents per lb

42% High Fructose Corn Syrup

Week's
change
+.50
+.50
-.05

June 10
23.50 @ 24.50
25.50 @ 26.50
24.75 @ 24.80

Year
ago
28.00
28.00
28.30

*Spot raw plus 7% plus 3c with 2% cash discount.

Bulk, delivered Midwest plant, cents per lb

Raw Cane
Delivered refiner, cents per lb
Contract
Nearby
June
July-September
October-December
January-March
April-June

Price
19.90
19.90
19.95
20.40
20.80
20.85

Week's
change
-
-
-.15
-.10
-
-.10

Year
ago
21.75
21.75
21.75
21.60
21.45
21.55

Eggs
f.o.b. plant, $ per lb

Milk Products
f.o.b. plant, $ per lb
June 10
.29 @ .30

Nonhygroscopic whey
Delactose whey,
(20% min. protein),
Regular edible
.31
Whey protein concentrate,
(34% protein), Regular edible .641/2
High-heat nonfat dry milk,
Chicago
.98
Buttermilk powder
1.12

@ .35
@ .661/2
@ 1.20
@ 1.25

48 / Milling & Baking News, June 15, 2004

Week's
change
-11/2c
-
+ 1/4c
-
-

Milk
Major milk products saw irregular
price changes last week, although the
market overall remained unchanged.
Whey stood out with a decline of 1½c a lb,
while whey protein concentrate moved
up ¼c. Other items were unchanged.
Additional fluid milk became available with the end of the school year at
some points. Increased output allowed
some processors to catch up. Still, other
processors said they were behind.
Resellers offered whey at a discount
and still encountered resistance at lower
levels. Export movement also was sluggish. Western numbers edged lower, and
the Northeast and Southeast markets also
began to soften.
Whey protein concentrate continued to
be tight. The best demand came from food
manufacturers. High-heat nonfat dry milk
again was scarce, with demand active.
Buttermilk powder pricing was steady. MBN

Eggs

Beet and Cane Sugar

Midwest beet
Pacific beet
Cane*

carry-in stocks. For 2003-04, sugar production was down 23,000 tons, based on
processors' production reports compiled
by the Farm Service Agency.
Corn sweetener business was inactive,
and shipments showed little change. MBN

June 10
Whole egg solids
2.25 @ 2.40
Egg yolk solids
1.45 @ 1.65
Egg white solids
6.00 @ 6.30
Blends (whole with sweetener) 1.63 @ 1.75

Week's
change
-.15
-
-.30
-

Cocoa
East Coast, $ per lb
June 10
10-12% natural butterfat .85 @ .95
Red alkalized
1.30 @ 1.40

Week's change
-.05
-

Buyers of dried egg products were
more cautious following further declines.
In particular, whole egg solids lost 15c a
lb, and egg white solids dropped 20c. At
the same time, egg yolk solids and blends
ended unchanged.
Buyers had little enthusiasm, and most
sought to cover only a month or two
ahead. A few inquired for the next quarter or for material through yearend, but
buyers and sellers mostly were unable to
come to terms on the forward business.
Eggnog manufacturers took forward
positions on egg yolk solids, but most
users, including bakers, were on the sidelines. Some participants continued to discourage forward coverage, and some
claimed layer numbers would pick up
toward September, possibly blunting any
seasonal increase in the fourth quarter. MBN

Cocoa
A softer tone emerged in cocoa powder
last week in scattered trading. Natural
cocoa declined 5c a lb, while red alkalized
held steady.
Scattered trade contracted material for
the balance of the year. There were hints
that some buyers were prepared to enter
the market for first-half 2005 coverage at
lower levels.
Ongoing reports of fighting in the
Ivory Coast raised concerns. Nevertheless, sources noted cocoa shipments to
the ports remained as expected. MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - June 15, 2004

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