Milling & Baking News - January 4, 2005 - 35

I N G R E D I E N T

was lacking during the week. Soybean
oil buyers were encouraged by recent
declines in the cash basis and were eager
to see if the weakening would continue.
There was a lot of business yet to be done
in the first quarter of 2005. It was expected
that buyers would begin to push contract
balances forward incrementally while
awaiting developments in the cash
market. Soybean oil futures prices also
were weaker last week and down about
7c a lb from a year ago.
Supplies of sunflowerseed oil remained
extremely tight to unavailable. Corn
oil supplies also were tight, reflecting
recent large purchases by snack food
manufacturers
seeking
trans
fat
alternatives. Canola supply seemed to
be loosening up. January canola oil was
being offered at a 9¾c-a-lb premium to the
January soybean oil future; nearby canola
oil was being offered at a 10¾c premium.
Lard prices were steady but down 8c a
lb from a recent high of 34c a lb logged in
September, when demand for the baking
season began to exert influence. Palm oil
pricing remained range-bound.
Export demand for U.S. soybean oil
was fairly active, with net sales of 17,300
tonnes registered for the week ended Dec.
23. Domestic shipments were slowed
because of downtime taken during the
holidays by several food processing
companies. The pace was expected to
pick up quickly after Jan. 1. MBN

Soy Flour
Bookings of soy flour were slow last
week. Prices were higher.
Limited fill-in business was done
during the typically slow holiday period.
Buyers, including bakers, already have
covered most of their needs through
the first quarter, and some through the
first half of 2005, both at substantially
lower prices than a year ago. But most
showed little interest in any longer-term
contracting because of the ample supply
of soybeans in the United States and in
the world. Plus, an expected record-large
South American soybean crop is only a
couple months away, which presents
another bearish factor in the market. MBN

remained seasonally slow as consumers
eat more hot cereal in place of cold cereal
during the winter. Snack meal demand
was steady and was expected to pick up
after the holidays. Sales of brewer's grits
and corn flour were light. MBN

Corn & Soy Futures
Corn futures prices posted modest
declines in very low-volume trading last
week. The Dec. 28 U.S. Department of
Agriculture hog inventory report showed
total hog numbers even with a year ago
and kept-for-breeding stock 1% less, both
below trade expectations. That meant
slightly less demand for the nation's
record 2004 corn crop. Net export sales
of U.S. corn in the week ended Dec. 23
were 751,700 tonnes, about as the trade
expected. Total export commitments for
the year still were 9% behind the year-ago
pace. Farmer selling remained slow but
was expected to pick up after Jan. 1. A
record number of short futures positions
was the lone supportive factor, with
short-covering boosting prices Thursday.
Soybean futures prices also declined
slightly last week, despite positive
export news. Net export sales of U.S.
soybeans in the week ended Dec. 23
totaled 926,600 tonnes, well above trade
expectations and 29% above the recent
four-week average. China was the key
buyer with 38% of the total. Export
commitments for the year still were 9%
behind a year ago.
Just a day after the U.S. reopened its
borders to cattle imports from Canada,

Spot Soybean Oil

bakingbusiness.com/world-grain.com

the Canadian government on Thursday
reported a suspected case of mad cow
disease. It was not expected to affect the
U.S. decision to accept cattle. MBN

Oats
Bookings of food grade oat flakes
were limited last week. Prices were
unchanged.
There
were
few
conversations
regarding sales last week. Many breakfast
cereal
manufacturing
companies
observed the holidays through extended
downtime. Oat mills also took some
downtime but were expected to resume
heavy schedules after the holidays.
Most major users were comfortable
with coverage extending at least through
March. At the same time, there was a lot
of business to be done with smaller
buyers for that time frame.
Oats
futures
prices
declined
moderately from a week earlier.
The cash basis on oats was strong.
Canadian farmer selling remained
limited. Concerns about how much
of the Canadian crop was milling
quality provided the cash market some
underlying support. MBN

Sweeteners
Sweetener business was very slow last
week. Beet sugar prices were firm. Spot
raw values were up 5 points, deferred up
5 to down 5. No progress was evident in
negotiations for 2005 sweetener contracts.
Price strength still was evident in
Midwest and West beet sugar. Although

Oats

Decatur, Ill., bulk cents per lb
Dec. 30
Oat flakes, food grade, f.o.b.
Minneapolis, bagged, $ per cwt 20.25@20.50
Milling quality oats, No. 2 heavy,
delivered Minneapolis, $ per bu
1.82¼
Oat screening, clean out,
oats unground, $ per bu
.80@1.10
Oat hull, ground hulls only, $ per ton 10@15

Week's
change
-
-¾
-
-

Spot Shortening
Bulk, cents per lb

Corn Meal
Sales of corn meal were very slow last
week. Prices were slightly higher.
New sales were lacking during the
holiday-shortened week, but some mills
reported active orders from existing
customers across all product lines.
Some buyers had allowed inventories
to run low as the year ended and were
scrambling to get supply for the first
week of January. Demand for flaking
grits from breakfast cereal makers

W E E K

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
Dec. 30
Week's
Delivery
close
change
January
20.61
-0.41
March
20.79
-0.32
May
21.02
-0.18
July
21.12
-0.14
August
21.13
-0.12
September
21.05
-0.15

Year
ago
28.04
27.91
27.76
27.48
27.03
26.18

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

Dec. 30
22.00
26.00
17.25
24.25
22.50
36.00
31.50
57.50
28.25
36.50
31.25

Week's
change
-.50
-
-.25
-.25
-
-
-.50
-
+.25
-.50
-1.00

Milling & Baking News, January 4, 2005 / 35

Year
ago
29.75
25.50
29.50
34.50
26.00
30.50
28.00
65.00
30.00
31.50
33.50
http://www.bakingbusiness.com/world-grain.com
Milling & Baking News - January 4, 2005

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