Milling & Baking News - August 31, 2004 - 42

I N G R E D I E N T

shipments was tightness in the transportation market. Transport equipment of all
kinds was difficult to secure, and manufacturers have notified grocery customers to that effect. MBN

Bakery Shortening
Bookings of bakery shortening were
limited last week. Prices of most items
were stronger.
Soybean oil prices were pulled higher
by advancing futures prices and a stronger cash basis. The latter received a boost
from tightening stocks of old crop soybeans. Spot buyers were feeling the
crunch from the higher pricing. But most
of the trade already had booked its needs
through September. While recent frost in
northern growing areas raised some concerns, a near record-large soybean crop
still was expected. Users believed that
prices should have some downside potential once the harvest begins.
The premium to soybean oil futures
asked for canola oil jumped 200 points last
week, to 800. Statistics Canada on Aug. 24
projected Canadian canola production at
363,479,000 bus, up 69,421,000 bus, or 24%,
from 294,058,000 bus in 2003. "The estimated yield of 28.6 bus per acre could
eclipse the previous record of 28.2 bus per
acre in 1999," Statistics Canada said. But
the forecast was based on a producer survey concluded on July 31. Since then,
growing areas have been subjected to frost
and even snow. Some damage from the
frost was expected. And last week's price
gain reflected these concerns.
Palm oil prices were stronger, reflecting both gains in competing domestic oils
and expanded purchasing by India. Lard
prices remained at 20-year-high levels.
Export demand for U.S. edible oil remained extremely light. MBN

week. Prices declined.
Demand for flaking grits from breakfast
cereal manufacturers remained strong,
though there was some indicated decline
in demand for the more finely granulated
grits used in the production of extruded
cereals. The latter was considered to be a
temporary development. Demand for
snack meal and brewer's grits were seasonally heavy, and some manufacturers
struggled to keep up with orders.
Corn flour sales have begun to increase, which was typical with the approach of the fall baking season.
Ideas were that the corn market might
have bottomed. And this encouraged
some users to extend contract coverage
well into 2005. MBN

Corn & Soy Futures
Corn futures began last week stronger
over concern about frost in northern
reaches of the Midwest but turned lower
the rest of the week on technical factors
and disappointing export data. The
U.S.D.A. rated corn crop condition at
71% good to excellent on Aug. 22, down
two points from a week earlier but 21
points ahead of last year. The crop was
36% dented on Aug. 22, ahead of last year
but behind the most recent five-year average for the date. Progress in northern
and western Corn Belt states was well
behind normal.
Soybean futures were up sharply last
Monday on freezing temperatures in the
north but saw choppy trading the rest of
the week. Because soybeans mature later

Spot Soybean Oil

Corn Meal

than corn, frost could have a greater impact on the crop. Ideas about the extent of
freeze damage to the crop were inconclusive last week. The soybean crop was rated
67% good to excellent as of Aug. 22, down
two points from a week earlier but 19
points ahead of last year. Ninety-one percent of the crop was setting pods, about
even with the recent average. Export sales
of 545,000 tonnes for the week ended Aug.
19 exceeded trade forecasts. MBN

Oats
Bookings of food grade oat flakes were
steady last week. Prices were unchanged.
As in the preceding week, not all suppliers participated in the new business.
Oat mills drawing on U.S. supply fielded
more inquiries and made more sales than
Canadian mills, who faced farmers stubbornly reluctant to sell and concerned
over the quality of their new crop in the
wake of recent frost.
The U.S. oats harvest was 75% completed on Aug. 22, compared with 58% a
week earlier and 85% as the recent fiveyear average for the date. The Canadian
harvest was just under way.
Statistics Canada on Aug. 24 projected
Canadian oats production at 245,088,000
bus, up 5,763,000 bus, or 2%, from
239,325,000 bus in 2003. The projection,
however, was based on a producer survey concluded July 31 and did not take
into account deteriorating weather. MBN

Sweeteners
Bookings of sugar for 2005 increased

Oats

Decatur, Ill., bulk cents per lb
Aug. 27
Oat flakes, food grade, f.o.b.
Minneapolis, bagged, $ per cwt 18.75@19
Milling quality oats, No. 2 heavy,
delivered Minneapolis, $ per bu
1.773/4
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. Prices declined.
Buyers, including bakers, continued to
hold off on committing to extensive coverage into the new crop year. Recent frost
across northern portions of the Midwest
introduced some concerns over quality
and potential yield losses. But forecasts
still called for a near-record soybean
crop, and some expected prices to trend
lower once the harvest actually gets under way in key production areas.
Because of unusually cool temperatures
in August, the harvest period could be an
extended one. Midwestern soy flour millers didn't expect to see significant volumes
of new crop for processing until October.
Shipments were seasonal. MBN

W E E K

Week's
change
-
+131/2 c

Spot Shortening
Bulk, cents per lb

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
Aug. 27
Week's
Delivery
close
change
September
24.40
+0.85
October
24.04
+1.02
December
23.62
+0.96
January
23.50
+0.93
March
23.45
+0.97
May
23.30
+0.93

Year
ago
20.82
20.85
20.86
20.83
20.75
20.60

Aug. 27
Soybean oil, Decatur
27.50
Loose lard, Chicago
33.00
Edible tallow, Chicago
18.50
Cottonseed oil, Miss. PBSY 27.25
Palm oil, ports
22.50
Palm kernel oil, ports
32.50
Coconut oil, West coast
31.75
Peanut oil, Southeast
55.50
Corn oil, Decatur
27.00
Sunflowerseed oil, Midwest
36.50
Canola oil, Midwest
32.50

Week's
change
+1.50
-
-.50
-.75
-
+.75
+.75
-
-
+1.00
+3.00

Sales of corn meal were steady last
bakingbusiness.com / world-grain.com

-
-

Milling & Baking News, August 31, 2004 / 43

Year
ago
21.50
21.25
18.00
27.75
21.50
20.50
20.00
61.00
31.00
33.25
27.00

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

Milling & Baking News - August 31, 2004

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