Milling & Baking News - October 4, 2005 - 51

I N G R E D I E N T

Sweeteners

W E E K

As some attention in sweeteners
shifted to corn sweeteners from sugar,
buyers again encountered significantly
higher pricing. Calendar year 2006 offers on 42% and 55% HFCS as well as on
corn syrup were up 2.65c a lb from 2005
contracts. Little or no initial coverage
took place.
Advances came after several years of
relatively unchanged levels in HFCS. The
corn sweetener industry has complained
about poor returns for some time. Disappointing margins in the past seemingly
reflected surplus capacity, now in part
offset by more ethanol outlets and other
factors. Still, individual buyers questioned whether the initial prices would
hold throughout negotiations but did
not go so far as to say levels again would
be unchanged this year. Sellers, on the
other hand, appeared confident of sizable increases.
At least one corn processor also instituted a fuel surcharge program similar
to 2005 on all contracted business. A second announced that effective Jan. 1, any
uncontracted shipments will be invoiced
f.o.b. Cedar Rapids, Iowa, plus applicable freight, throughput and surcharges.
Prices would be 13c a lb for 42% HFCS,
26c for 55% and 14c for corn syrup.
Mexico said it would allow 250,000
tonnes of HFCS from the U.S. in 2006, but
details still were unclear late last week.

Beet and cane sugar

Sugar pricing remained chaotic, especially in the Midwest. However, with the
end of September, quotes became somewhat more rational, especially when
compared with other markets.
Midwest beet sugar for October was
34½@36½c a lb f.o.b. The Pacific market was at the same level. East coast
traders reported business taking place
at 34@35c a lb f.o.b., and larger sellers
indicated Southeast and south central at
35½@37½c a lb f.o.b.
Still, spot sales of sugar at much
higher levels continued. A merchandiser
said spot changed hands at 46½c a lb delivered Chicago, or about 44½c f.o.b.
Nearby sugar supplies remained
extremely tight. Some if not most processors were supplying only regular
customers, and others took on some
but not all new users. Several important
companies have rationed, or hinted they
might soon ration, current production
to cover even outstanding contracts.
Suppliers predicted greater challenges
might lie ahead. MBN

Bakery Shortening

Bookings of bakery shortening were
limited. Prices were mostly stronger.
Soybean oil prices rallied Friday in the
wake of bullish Sept. 1 soybean stocks
estimates from the U.S. Department of
Agriculture. The cash basis on soybean
oil was unchanged. Soybean oil futures

prices at Chicago advanced about 1½c
a lb. Earlier in the week, soybean oil futures had weakened with the rest of the
soy complex, which had been pressured
by harvest progress.
The U.S. Bureau of the Census estimated soybean crush in August at 130.3
million bus, down from 139.5 million
bus in July but up sharply from 103 million bus in August 2004.
Buyers of soybean oil already had
covered most of their needs through December. They held off on contracting for
January and beyond, expecting soybean
oil prices to turn lower.
Palm oil prices advanced in response
to earlier gains in soybean oil. Palm oil
production continued at record levels.
With demand just steady, stocks were
building in key exporting countries.
Cottonseed oil prices were stronger on
concerns that hurricanes have reduced
crop potential. Supplies were expected
to be tight through the coming crop year
as major snack producers already have
contracted for their needs.
Canola oil prices moved in tandem
with soybean oil prices, maintaining a 7cplus premium to cash soybean oil prices,
Midwest. Lard prices surged higher as
demand for the key fall baking season
expanded. Edible tallow prices gave a
little ground, but it was thought tallow
would bounce back, as it was trading at
an unusually wide discount to lard. MBN

Sweeteners
Delivered basis, cents per lb
H.F.C.S. spot price1

f.o.b. plant, cents per lb

H.F.C.S. list price2
Regular
- Change from - Year
corn
Sept. 30
Sept. 23 Sept. 16 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
Sept. 30
Year ago
Midwest beet 34.50 @ 36.50
-
-
23.50
13.00
12.00
15.00 net
93/8@ 97/8
93/8@ 12
East
23.10@25.10
Pacific beet
34.50 @ 36.50
-
-
25.00 Midwest
3
14.55
13.55
16.55 net
Midwest
22.10@24.10
Cane*
34.60 @ 34.65
-
-
25.25 Northeast 10¾@ 13 /8 10¾@ 11¼
14.75
13.75
16.75 net
Southeast 107/8@ 13½ 111/8@ 115/8
West
25.10@27.10
*Spot raw plus 7% plus 3c with 2% cash discount.
14.25
13.25
16.25 net
Southwest 10½@ 131/8 10¾@ 11¼
Raw cane
14.95
13.95
16.95 net
West
11¾@ 14 11¾@ 12¼
Delivered refiner, cents per lb
1-Variations in prices often tied to tank car versus truck deliveries. 2-Prices are the lowest available to the publication. 3-Regular 42 DE/43 Baume, f.o.b. tank cars, trucks
- Change from -
Contract
Sept. 30 Sept. 23 Sept. 16
Nearby
21.45
+.15
+.45
October-December 21.45
+.15
+.45
January-March
21.20
+.25
+.45
April-June
21.10
+.15
+.30
July-September
21.25
+.10
+.10
October-December 20.95
+.20
+.20

Year
ago
20.35
21.00
21.15
...
...
20.35

Spot soybean oil
Decatur, Ill., bulk, cents per lb

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Sept. 30
- Change from -
Delivery
close
Sept. 23
Sept. 16
October
23.72
+.84
+1.76
December 23.95
+.80
+1.77
January
24.21
+.89
+1.85
March
24.32
+.82
+1.82
May
24.37
+.74
+1.80
July
24.51
+.76
+1.81

Edible oils
Bulk, cents per lb
Year
ago
20.77
20.90
20.95
21.04
21.08
21.15

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
September
24.22 @24.47
October
24.22 @24.47
November
24.35 @24.60
December
24.45 @24.70
January
24.71 @24.96
February
24.77 @25.02
March
24.82 @25.07

52 / Milling & Baking News, October 4, 2005

Western points
23.72 @23.97
23.72 @23.97
23.85 @24.10
23.95 @24.20
24.21 @24.46
24.27 @24.52
24.32 @24.57

- Change from - Year
Sept. 30 Sept. 23 Sept. 16 ago
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

24.75
24.00

+.75
+3.75

+1.75 23.50
+4.00 30.00

17.50

-1.00

-2.75

34.50
21.50

+2.75
+.50

+4.00 23.50
+1.00 22.50

32.75

+.50

+1.50 34.50

30.25
57.00
29.00

+1.00
+3.00
-.50

+2.50 32.00
+3.00 55.00
-
26.00

51.00
32.00

+.75
+.75

+.75 32.25
+1.75 28.75

17.75

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Milling & Baking News - October 4, 2005

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