Milling & Baking News - February 22, 2005 - 52

I N G R E D I E N T

limited last week. Prices were steady to
higher.
Soybean oil pricing was up-and-down
through the week reflecting movements
in soybean oil futures prices. Futures
prices had scored impressive gains the
previous week on concerns over dryness
in South America, then gave back some of
that ground in last week's trading before
finishing slightly higher on a Friday
advance. Most of the trade expected
renewed weakness in soybean oil futures
prices with the approach of the South
American harvest, which will be record
large even with some weather reduction
of yields in Brazil, and spring planting in
the U.S. Last week's business involved
filling of gaps in March coverage and
minor purchases into April-May.
Tropical oil prices were uniformly
higher, though not significantly so. Lard
and edible tallow prices were steady,
with a weaker undertone in tallow.
There were no changes in corn oil or
peanut oil prices.
The price of canola oil was firm to
stronger. The market was underpinned
by the relatively poor quality of seed
with regard to oil yield. At the same
time, Agriculture and Agri-Food Canada
projected 2004-05 ending stocks of canola
at a burdensome 1,500,000 tonnes, up
888,000 tonnes, or 145%, from 612,000
tonnes in 2003-04.
Sunflowerseed oil remained virtually
unavailable to the market.
Export sales of U.S. soybean oil in the
week ended Feb. 10 were a mediocre
4,400 tonnes, with most destined for
Central American nations. MBN

 Soy Flour

Bookings of soy flour remained light
last week. Prices were higher.
Processors again saw some limited
near-term interest in soy flour but
very little buying more than a quarter
forward. Although dry weather in South
America indicated that crop might be
smaller than first projected, it still was
expected to be record large and pressure
U.S. prices as harvest approaches in
coming weeks. U.S. farmers increased
soybean sales early last week when
futures moved higher, but then slowed
at midweek when prices declined. Sales
of U.S. soybean meal abroad for the week
ended Feb. 10 totaled 173,500 tonnes,
well above trade expectations. For the
first 19 weeks of the marketing year,
total commitments were 18% ahead of
the year-ago pace. Soybean meal futures
hit five-month highs.
Shipments were brisk as processors ran
full schedules, although some planned
downtime for Presidents Day. MBN

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 Corn Meal

Sales of corn meal were steady last
week. Prices were slightly higher.
Sales of flaking grits to breakfast cereal
manufacturers were steady, although
some mills still could use more volume
because the good milling quality of the
2004 corn crop has provided a larger
percentage of coarse grit production
compared with last year. Snack meal
sales were unchanged. Demand for
brewer's grits was seasonally slow. Sales
of corn flour were steady. MBN

 Corn & Soy Futures

Corn futures prices posted slim gains
last week. Little changed fundamentally,
with the record-large 2004 U.S. crop
keeping a ceiling on prices and farmer
selling still light. Net sales of corn abroad
for the week ended Feb. 10 were 786,000
tonnes, within trade expectations.
Exports were 12% behind last year
for the first 24 weeks of the marketing
year. World supplies remain plentiful.
Argentina raised its projected 2004-05
crop to 19 million tonnes, compared
with 17.5 million as the latest from the
U.S. Department of Agriculture.
The soy complex saw a second week
of strong gains, getting support from
speculative covering of large short
positions and news of hot, dry conditions
in South American soybean growing
areas. For the week ended Feb. 10, net
sales of U.S. soybeans abroad totaled
379,000 tonnes, within trade expectations
but still a marketing year low. The

Spot Soybean Oil

W E E K

previous week's Asian holidays were
seen as a limiting factor. Exports were
5% ahead of last year through the first
24 weeks of the marketing year. Farmer
selling of soybeans was light, but saw
some increase with higher futures. MBN

 Oats

Bookings of food grade oat flakes
were limited. Prices were unchanged.
With most buyers of oat flakes already
having booked their old crop needs,
business remained subdued. There were
transactions yet to be done with buyers
who purchase for narrower timeframes.
Shipments remained brisk, with the
hot breakfast cereal season at its peak.
Agriculture and Agri-Food Canada
projected 2004-05 oats exports at
1,500,000 tonnes, down 57,000 tonnes
from the previous year "as a result of
decreased supplies of milling quality
oats in Canada and the weakness in U.S.
import demand." MBN

 Sweeteners

Developments in sweeteners painted
a somewhat confusing picture last week,
while pricing overall showed little change.
Business in sugar was spotty, with a large
number of users already covered for the
balance of the marketing year or even
through December. Midwest and Pacific
sugar numbers ended unchanged. In cane,
spot raws also were steady, while deferred
positions closed unchanged to 10 points
higher. Corn sweeteners were inactive.
Midwest beet sugar quotes again

Oats

Decatur, Ill., bulk cents per lb
Feb. 18
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
1.93½
Oat screening, clean out,
oats unground, $ per bu
.80@1.10
Oat hull, ground hulls only, $ per ton 10@15

Week's
change
-
+1½
-
-

Spot Shortening
Bulk, cents per lb

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
Feb. 18
Week's
Delivery
close
change
March
20.07
+0.06
May
20.20
+0.01
July
20.36
+0.09
August
20.38
+0.08
September
20.42
+0.12
October
20.42
+0.02

Year
ago
32.93
32.58
32.07
30.95
29.74
28.20

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

Feb. 18
20.75
18.50
18.50
24.50
19.25
33.50
31.00
56.00
28.50
45.00
28.75

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

Milling & Baking News, February 22, 2005 / 51

Year
ago
34.50
27.00
20.00
38.00
27.00
31.00
28.00
65.00
30.50
34.50
38.00
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Milling & Baking News - February 22, 2005

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