Milling & Baking News - July 27, 2004 - 36

I N G R E D I E N T

W E E K

O.A.Q. level a "non event" because it was
only 150,000 tons less than the previous
year. The change was deemed not significant enough to encourage either side to
move. From the sellers' perspective, there
still was no incentive to sell with prices so
close to forfeiture levels. But many buyers saw the new level as bearish and were
willing to wait for prices to drop. There
were limited inquiries seeking lower
prices last week, but no takers. And small
sales in the Midwest occurred at or above
the top end of the 23.50@24.50c price
range, like before the announcement.
Those who saw the O.A.Q. level as too
high noted the drop in raw values and
predicted additional declines, possibly
even forfeitures. One major confectioner
commended the U.S.D.A. for responsibly
administering U.S. sugar policy. Others,

however, saw the level as too low and
expected prices, at a minimum, to hold
steady. They noted that the 8.1 millionton level would reduce free stocks by
400,000 tons by the end of 2004-05.
Both sides agreed that the key unknown
was domestic demand. In its latest supply/demand report, the U.S.D.A. projected domestic food use at 9.715 million
tons, up 45,000 tons from 2003-04. Some
sources said demand was overstated.
Others noted that use was actually up for
the year to date and demand for 2004-05
might have been understated.
Both sides noted that at some point
bakers and confectioners would have to
book sugar for next year. But based on
last week's limited activity, most were
comfortable with what they already
owned and were willing to wait.

Spot Raw Cane Sugar

Spot 42% HFCS

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

Delivered basis, cents per lb
July 23
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.

Beet and Cane Sugar

42% High Fructose Corn Syrup

Week's
change
-
-
-.20

July 23
23.50 @ 24.50
25.00 @ 26.00
24.90 @ 24.95

Year
ago
27.00
27.50
28.00

*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
July-September
October-December
January-March
April-June
July-September

Price
20.00
20.00
20.15
20.55
20.75
21.00

Week's
change
-.20
-.25
-.30
-.35
-.30
-.25

Year
ago
21.40
21.40
21.40
21.45
21.45
21.75

f.o.b. plant, $ per lb
f.o.b. plant, $ per lb
Week's
July 23
change
.231/2 @ .251/2 -11/2c

Nonhygroscopic whey
Delactose whey,
(20% min. protein),
Regular edible
.30
Whey protein concentrate,
(34% protein), Regular edible .641/2
High-heat nonfat dry milk,
Chicago
.95
Buttermilk powder
1.04

July 23
Whole egg solids
2.15 @ 2.20
Egg yolk solids
1.50 @ 1.55
Egg white solids
4.85 @ 5.00
Blends (whole with sweetener) 1.65 @ 1.75

@ .35

Cocoa

@ .661/2

East Coast, $ per lb

@ 1.20
@ 1.20

-
-1c

36 / Milling & Baking News, July 27, 2004

July 23
10-12% natural butterfat .85 @ .95
Red alkalized
1.30 @ 1.40

Egg product prices were steady to
weaker again last week. Dried egg white
solids were 10c a lb lower, whole egg solids and blends steady but weak and egg
yolk solids steady. Breaking stock prices
were unchanged.
Shipments of dried egg products remained at a seasonally slow pace. Dried
yolks stabilized as whites continued to
drop, with trades occurring below reported price ranges. Gains in table egg
demand and prices stopped the flow of
graded eggs to breakers, which should
put a floor under processed prices. Dried
eggs processed in the latest week were
down 2% from a week earlier but up 13%
from a year ago. MBN

Cocoa

Eggs
Milk Products

Milk
Milk product prices remained under
pressure from higher-than-expected production and generally weak demand.
The usual summer drop in milk output
failed to materialize in some areas as temperatures remained moderate. Dry whey
was 1½c a lb lower, and buttermilk powder was down 1c. Butter prices again
dropped, although not as sharply as during the previous week.
Dry whey prices dropped on light demand and growing inventories. Buyers
still had stocks they had purchased earlier in the year on ideas prices would keep
climbing. Some offered loads for resale at
discounted prices. Lactose prices were
weak, with the high side of the price range
declining. Demand continued to erode.
Dry buttermilk prices declined as supplies increased amid light demand. Production remained heavy. Some producers were willing to build inventory on
ideas supplies would tighten.
Casienate prices jumped as subsidies
to European producers declined and exporters boosted prices to offset. Supplies
still were rationed. MBN

Eggs

f.o.b. plant, cents per lb
Midwest beet
Pacific beet
Cane*

Sweetener shipments remained at a
seasonal pace. MBN

Week's
change
-
-
-.10
-

Week's change
-
-

The cash cocoa market was quiet as futures continued their upward climb, topping $1,600 per tonne in New York last
week. At least one major manufacturer
was said to have raised 10% to 12% butterfat prices last week. Butterfat ratios
edged up 5 points.
Gains in cocoa futures were attributed
to speculative buying, since most fundamentals were little changed. In fact, second-quarter U.S. cocoa grind, at 98,070
tonnes, reported late the previous week,
was disappointing. Talk continued about
a reduced 2004-05 Ivory Coast crop because of dryness. MBN
bakingbusiness.com / world-grain.com

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

Milling & Baking News - July 27, 2004

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