Milling & Baking News - September 28, 2004 - 34

I N G R E D I E N T

yet in evidence, manufacturers said. MBN

Bakery Shortening
Bookings of bakery shortening were
active last week as soybean oil futures
dropped further on favorable late-season
weather, the more rapid pace of the soybean harvest and reports of higher-thanexpected yields.
While still lagging normal coverage
levels, soybean oil bookings into 2005
continued the more active pace that began the previous week. Some buyers
booked coverage through September
2005, while others covered for shorter
periods. Processors noted that most interest was from small to medium-sized buyers rather than from larger customers.
Cottonseed oil, sunflowerseed oil,
canola oil and palm oil prices declined.
Interest in cottonseed oil had increased
briefly because of Hurricane Ivan but
subsided late last week, with the basis
level unchanged and the cash price at a
two-year low.
Prices of corn oil, palm kernel oil and
coconut oil held steady. Peanut oil also
was steady as concern about Hurricane
Ivan's impact on the peanut crop eased.
Loose lard held steady, maintaining its
20-year high, but edible tallow weakened.
Export sales of U.S. soybean oil totaled
4,600 tonnes in the week ended Sept. 16,
down 37% from a week earlier but still
about three times the four-week average.
Domestic shipments were seasonal. MBN

Soy Flour
Bookings of soy flour remained light
last week. Prices declined sharply.
Processors reported active inquiry last
week, but most buyers opted to hold out
a little longer, especially since yields from
early-harvested fields have been higher
than expected. While most buyers had
coverage through November, and many
through the end of 2004, booking through
March, September and even December
2005 likely will not begin in earnest until
mid-October, when the harvest in key
states will be fully engaged. With the second-largest soybean crop on record expected, and prices consistently moving
lower, buyers felt no urgency to rush into
contracting, even though soy flour prices
had dropped by more than a third from
levels of just three months ago. MBN

Corn Meal
Sales of corn meal were somewhat uneven last week. Prices declined.
Demand for flaking grits from breakfast cereal manufacturers was again
mixed, with some mills reporting strong
sales but others weaker-than-expected
volume. Snack meal sales were about
even, dropping off slightly at some mills
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on a seasonal basis. Volume of brewer's
grits eased, again a seasonal trend. Corn
flour sales also were mixed, with some
mills reporting strong sales but others offering oversupply for feed. Mills expected
corn flour demand to improve soon with
the fall baking season nearly at hand. MBN

Corn & Soy Futures
Corn futures continued to set new contract lows daily last week as pressure
from expanding harvest increased and
good weather allowed the crop to mature
in northern areas. Friendly export news
Thursday was unable to stop the slide.
The U.S. Department of Agriculture reported net sales of 1,178,000 tonnes for
the week ended Sept. 16, at the high end
of trade expectations. The U.S.D.A. rated
corn crop condition 70% good to excellent on Sept. 19, up one percentage point
from a week earlier and 24 points ahead
of last year. Forty-three per cent of the
crop was mature versus 60% as average.
Soybean futures set new contract lows
almost daily as well, under pressure from
good late-season weather and reports of
higher-than-expected yields, even from
areas thought to have a poorer crop. The
soybean crop was rated 64% good to excellent as of Sept. 19, compared with 63%
a week earlier and 40% last year. Eight
per cent of the crop was harvested,
slightly ahead of average. The market
discounted Thursday's export data,
which showed export sales of 1,003,200
tonnes during the week ended Sept. 16,
including 480,200 tonnes to China. MBN

Spot Soybean Oil

W E E K

Oats
Bookings of food grade oat flakes were
limited last week. Prices remained strong.
Contracting remained mostly hand-tomouth. Coverage was pretty solid through
December. Typically, September-October
would see the beginning of contracting for
needs deep into the next year. But with the
harvest in Canada proceeding at a snail's
pace because of continued rain interruptions, the market was unsettled, and buyers and sellers were holding off on largevolume forward business until supply and
quality of the new crop were more certain.
While contracting was slow, shipments were seasonally brisk, with preparations for the hot breakfast cereal season
in high gear.
Canadian oat mills have begun to take
delivery of new crop oats. The crop was
being harvested wet and required mechanical drying. A veteran Canadian oats
buyer said the quality of the initial deliveries was surprisingly good, "considering the abuse to which the crop has been
subjected." MBN

Sweeteners
Additional significant sugar bookings
transpired in sweeteners last week. Buyers purchased large quantities of cane
sugar for 2004-05 marketing year and for
the 2005 calendar year as well. In sharp
contrast, beet sugar business was relatively quiet after several weeks of appreciable activity. Pricing was largely unchanged at least for sugar, while the situ-

Oats

Decatur, Ill., bulk cents per lb
Sept. 24

Week's
change

Oat flakes, food grade, f.o.b.
Minneapolis, bagged, $ per cwt 20.75@21
Milling quality oats, No. 2 heavy,
delivered Minneapolis, $ per bu
1.931/4
Oat screening, clean out,
oats unground, $ per bu
.80@1.10
Oat hull, ground hulls only, $ per ton 10@15

-
+4c
-
-

Spot Shortening
Bulk, cents per lb

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
Sept. 24
Week's
Delivery
close
change
October
20.78
-1.30
December
20.68
-1.21
January
20.71
-1.14
March
20.77
-1.08
May
20.79
-0.99
July
20.77
-1.00

Year
ago
23.61
23.66
23.61
23.50
23.13
23.00

Sept. 24
Soybean oil, Decatur
23.75
Loose lard, Chicago
34.00
Edible tallow, Chicago
18.25
Cottonseed oil, Miss. PBSY 23.50
Palm oil, ports
22.50
Palm kernel oil, ports
35.00
Coconut oil, West coast
33.00
Peanut oil, Southeast
56.00
Corn oil, Decatur
27.00
Sunflowerseed oil, Midwest
32.25
Canola oil, Midwest
28.75

Week's
change
-1.25
-
-.25
-1.25
-.75
-
-
-
-
-1.25
-1.25

Milling & Baking News, September 28, 2004 / 35

Year
ago
25.00
26.00
21.50
32.00
21.50
23.00
20.75
63.00
29.50
33.50
29.25

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Milling & Baking News - September 28, 2004

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