Milling & Baking News - December 6, 2005 - 46

I N G R E D I E N T

Soy Products

Bookings of soy flour increased from
the holiday week. Prices advanced.
Soy flour orders picked up after the
holiday but remained mostly month-tomonth. Contracting for longer periods
was reduced to a trickle. Processors
speculated some buyers were deferring
purchases in hopes for lower prices into
January as the South American crop develops. Last year, soy flour prices held
firm in December but declined around
40c a lb in January, before shooting
higher in February. Shipments were
brisk after the holiday downtime.
Soybean futures recovered from the
previous week's nine-month lows.
They ended modestly higher last week.
Trading was choppy and within narrow ranges. Speculative and technical
buying pushed prices higher, while
most fundamentals remained negative.
Weather in South American soybean areas generally was good. Concern about
the effects of avian influenza on global
soybean and soybean meal demand
lingered. Exports were disappointing.
Cash basis levels held firm.
Net export sales of U.S. soybeans
in the week ended Nov. 24, at 370,800
tonnes, were below most trade expectations but were 69% above the previous week's marketing year low. Sales
included 292,800 tonnes to China. An
additional sale of 116,000 tonnes to
China was reported by the U.S. Department of Agriculture last Monday.
Export sales of soybean meal, at 76,100
tonnes, were below trade expectations
and were a marketing year low. Yearto-date sales of soybeans lagged the
same time last year by 29%, while soybean meal sales were 17% behind. MBN

Chicago corn & soy futures
Corn Futures
$ per bu
December
March
May
July
September
December
Soybeans
January
March
May
July
August
September
Soybean Meal
December
January
March
May
July
August

Dec. 2
1.89¾
2.03¼
2.11¾
2.20
2.28
2.39
$ per bu
5.62¾
5.70½
5.74¾
5.80
5.81
5.82
$ per ton
173.80
173.70
174.80
175.30
177.40
178.00

Sales of corn meal were strong last
week. Prices were narrowly mixed.
Corn millers reported mixed product
sales. Some said demand was strong
across all product lines, from flour to
large grits. Others noted that sales of medium grits were not as strong as of other
products because snack makers had covered their holiday needs. Corn mills ran
six to seven days to make up for holiday
downtime. Some planned to run continuously up to the Christmas break.
Corn futures prices dipped to fouryear lows early last week but ended the
week with slight gains in most months
on spillover support from the soy
complex and a higher cash basis. Early
pressure came from technical selling, expected heavy physical deliveries against
December futures, worries that avian
influenza would reduce demand from
Asian feed buyers and good weather in
Argentina's corn-growing region.
The cash market remained firm, as
buyers boosted bids to pry tightly held
corn from firm producer hands. But at
current cash price levels, which were
near five-year lows in some areas, farmers were expected to remain reluctant
sellers. Some elevators took contracted
corn early because they did not have
enough spot sales to fill orders. The onset of winter weather also limited sales
in the western Corn Belt last week.
Net export sales of corn for 2005-06
in the week ended Nov. 24, at 611,700
tonnes, were 41% below the previous
week's sales and were well below trade
expectations. They did not reflect a cancellation of 200,000 tonnes by Egypt on
Wednesday. Year-to-date sales lagged
the same period last year by 7%. MBN

Oats

Bookings of food grade oat flakes were
strong last week. Prices were higher.
Oat mills ran heavy to meet hot breakfast cereal demand and to make up for
Thanksgiving week downtime. Shipments were brisk.
The December oats future on the Chicago Board of Trade posted impressive
price gains of more than 20c a bu last
week, while other contract months were
modestly higher or even lower. Nearby
oat futures, which usually follow corn,
traded above nearby corn for the first
time in about three years. Most of the
gain occurred Thursday because of a
lack of physical deliveries against the
December future, continued firm cash
prices and tight oat supplies. But volume was thin, causing some to be skeptical about the run-up. The higher prices
were expected to encourage Canadian
farmers, who have been tightly holding
their smaller-than-expected 2005 crop, to
at least consider marketing more oats. MBN

Rice

Cash rice prices were mostly steady
last week, except long grain, which was
steady to 50c a cwt higher. Byproduct
prices were steady to weaker, although
supply remained tight. U.S.D.A. world
rice prices were unchanged.
Rough rice futures prices were lower
last week as traders rolled January contracts into March. Disappointing exports
also weighed.
Net export sales of U.S. rice for 2005-06
in the week ended Nov. 24 totaled 38,500
tonnes, 60% below the previous week and
52% under the recent four-week average.
Export commitments for the year to date
were 26% ahead of a year ago. MBN

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt
- Change from -
Dec. 2
Nov. 25
Nov. 18
1.96¼ Soy flour
12.98 @ 13.17 +.75@ +.17 +.67 @ +.06
2.07¼ Bulk
Sacked
13.98 @ 15.17 +.75@ +.17 +.67 @ +.06
2.15
2.22
Corn meal
2.29½
$ per cwt
2.38
- Change from -
Dec. 2
Nov. 25
Nov. 18
5.25¾
10.52@ 11.76 +.04@-.04 +.01@+.02
5.29¾ Chicago, bulk
Chicago, sacked 12.29@ 13.59 +.04@-.04 +.01@+.02
5.36
12.19@ 13.49 +.04@-.04 +.01@+.02
5.44½ New York, bulk
New York, sacked 14.60@ 15.88 +.04@-.04 +.01@+.02
5.48

- Change from - Year
Nov. 25 Nov. 18 ago
-
+½
+½
+¾
-
-¼

-1½
-2
-1½
-1¼
-1¾
-1¾

+8½
+8¼
+6¾
+5¾
+4
+5

-7
-6¾
-8
-8¼
-8¾
-7¾

+3.70
+3.00
+1.90
+.50
+.60
-

+1.60
+.50
-.10
-1.50
-1.70
-2.10

bakingbusiness.com/world-grain.com

Corn Products

5.48
154.30
155.20
157.10
159.50
162.70
163.80

W E E K

Rice
Offers f.o.b. mills, $ per cwt, bagged

- Change from - Year
Cash
Dec. 2
Nov. 25 Nov. 18 ago
Long grain
14.50@15.50
-
- 14.00
Medium grain 20.00@22.50
-
- 14.00
Parboiled
15.75@18.00
-
- 15.25
Second
heads, bulk 9.00@11.00
-
- 11.50
Brewers
8.00@10.75
-
- 11.00
Rice flour
...
...
...
...
f.o.b. mills, $ per ton
Rice bran
40.00@60.00
-
- 68.00
Rice hulls
2.00
-
-
6.00
U.S.D.A. world price milled - $ per cwt
Long grain
9.35
-
-
9.82
Oats
Medium grain
9.21
-
-
8.98
9.19
-
-
8.99
- Change from - Short grain
Minneapolis
4.68
-
-
4.91
Dec. 2
Nov. 25 Nov. 18 Broken
C.B.O.T. rough rice futures - $ per cwt
Food grade flakes, f.o.b.,
7.40
-0.265 -0.065
...
bagged, $ per cwt
21.50@22 +.50c
+.50c January
March
7.685
-0.235 -0.035
7.81
Milling quality oats, No. 2 heavy,
7.89
-0.23
-0.05
8.00
$ per bu
2.15¾
+15¼c +27¾c May
July
8.14
-0.18
-
8.19
Oat hulls, $ per ton
10@15
-
-

Milling & Baking News, December 6, 2005 / 47

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Milling & Baking News - December 6, 2005

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