Milling & Baking News - December 6, 2005 - 47

I N G R E D I E N T

Sweeteners

W E E K

Corn refiners completed 2006 sweetener contracts last week at 2.65c a lb over
2005 contract prices for 42% and 55%
H.F.C.S. as well as corn syrup. While
some buyers left about 25% of their
needs uncovered, both buyers and sellers
agreed major contracting had been finished for the year prior to an additional 1c
hike planned by some in late November.
Sugar markets were quieter, with
some in the trade expecting little new
activity for 2006 until after Christmas.
Cane and beet sugar prices for December were steady at 40@42c a lb f.o.b.
Midwest and 41.5@42c West. Raw values
dropped sharply in anticipation of an
increase in the tariff rate quota (T.R.Q.)
by the U.S. Department of Agriculture.
Nearby raws were down 55 points, and
deferreds were down 60 points to up 5.
The U.S.D.A. still was mum on imports
at the week's end.
There appeared to be no shortage of
sugar as the end of the calendar year
approached. Some processors still were
catching up from the late summer supply shortage, but they expected to be
current by the end of December.
Some processors indicated they had
contracted 75% of their 2006 business.
Several buyers appeared interested in
pricing for July-September only, but
most processors indicated they would
not sell for that quarter unless the user

Beet and cane sugar

also booked for the preceding two quarters. One processor was said to offer the
fourth quarter (July-September) only but
at a 2c a lb premium to its full-year price.
Despite active inquiries for 2006, little
new business was completed last week.
Refined sugar prices for the remaining
three quarters of the 2005-06 marketing
year appeared to soften again last week.
In the East, prices eased about a ½c a lb, to
35½@37½c. Other regions showed similar
softness, with asking prices steady but
sellers willing to discount ½@1c a lb.
Current weakness was mostly from
anticipation of increase in the T.R.Q. But
some processors suggested a slightly
better-than-expected sugar beet crop
also was a factor.
Supply will be boosted by the resumption of processing at Domino's
Chalmette, La., cane refinery. The plant,
down since incurring major hurricane
damage in late August, resumed limited
operations last week.
World sugar prices on the New York
Board of Trade hit nine-year highs last
week as the result of changes in the European sugar program and increased use
of sugar for fuel in Brazil. MBN

Bakery Shortening

Bookings of bakery shortening again
were brisk last week. The pace of business had picked up Thanksgiving week,
when prices slipped for most ingredi-

ents. Prices mostly were unchanged to
lower last week.
Soybean oil futures prices bounced
slightly after the previous week's declines. But the cash basis on soybean oil
weakened. One merchant pointed to a
build up in soybean oil stocks and tempered enthusiasm over the prospects for
near-term demand related to bio-diesel
as reasons for the dip.
Soybean oil users took advantage
of attractive pricing early in the week
to add to first-quarter coverage. It was
estimated that about 60% of prospective
January-March coverage now was on
the books. Some buyers began to extend
contract balances into April-June.
Net export sales of U.S. soybean oil
in the week ended Nov. 24 totaled 3,400
tonnes.
Lard prices dropped 4c a lb. The
buckling in price reflected diminished
demand as the fall baking season approached its end. Edible tallow prices
followed the lard market lower.
Peanut oil prices reflected mid-December offers, with new crop exerting
increased pressure. Canola prices were
easier. The premium to soybean oil
asked for cottonseed oil narrowed, with
prospective new crop supplies a factor
in this market as well. Sunflowerseed oil
continued to hold at a 13.5c premium to
the nearby soybean oil future price.
Palm oil prices weakened. MBN

Sweeteners
Delivered basis, cents per lb
42% H.F.C.S. spot price1

f.o.b. plant, cents per lb

H.F.C.S. list price2
Regular
- Change from - Year
corn
Dec. 2
Nov. 25 Nov. 18 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
Dec. 2
Year ago
Midwest beet 40.00 @ 42.00
-
-
23.00
14.00
13.00
16.00 net
93/8@ 97/8
11½@ 12
East
23.10@25.10
Pacific beet
41.50 @ 42.00
-
-
24.50 Midwest
7
3
15.55
14.55
17.55 net
Midwest
22.10@24.10
Cane*
41.85 @ 41.90 -.60
-.45 25.15 Northeast 12 /8@ 13 /8 10¾@ 11¼
15.75
14.75
17.75 net
Southeast
13@ 13½ 111/8@ 115/8
West
25.10@27.10
*Spot raw plus 7% plus 15.5c with 2% cash discount.
15.25
14.25
17.25 net
Southwest 125/8@ 131/8 10¾@ 11¼
Raw cane
15.95
14.95
17.95 net
West
13½@ 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
Dec. 2 Nov. 25 Nov. 18
Nearby
21.50
-.55
-.45
November-December 21.50
-.55
-.45
January-March
21.30
-.60
-.30
April-June
21.25
-.40
-.35
July-September
21.40
-.45
-.30
October-December 21.05 +.05
-.15

Year
ago
20.25
20.25
20.25
20.45
20.70
20.70

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Dec. 2
- Change from -
Delivery
close
Nov. 25
Nov. 18
December 21.29
+.16
-.72
January
21.56
+.28
-.63
March
21.91
+.35
-.52
May
22.20
+.32
-.48
July
22.52
+.41
-.42
August
22.60
+.32
-.44

Edible oils
Bulk, cents per lb
Year
ago
20.41
20.40
20.54
20.68
20.81
20.78

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
December
21.29 @21.54
January
21.56 @21.81
February
21.74 @21.99
March
21.91 @22.16
April
22.06 @22.31
May
22.20 @22.45
June
22.36 @22.61

48 / Milling & Baking News, December 6, 2005

Western points
20.79 @21.04
21.06 @21.31
21.24 @21.49
21.41 @21.66
21.56 @21.81
21.70 @21.95
21.86 @22.11

- Change from - Year
Dec. 2 Nov. 25 Nov. 18 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

21.75
24.00

-
-4.00

-.50
-4.00

22.75
28.00

19.50

-.50

17.25

31.50
21.00

-1.75
-1.25

-3.00
+.25

23.75
22.75

32.75

-.25

37.00

28.75
50.00
28.00

-
-2.00
-

-.25
-4.00
-2.00

32.50
57.50
27.50

34.00
29.50

-.25
-.50

-1.00
-1.00

35.75
31.75

bakingbusiness.com/world-grain.com

http://www.bakingbusiness.com/world-grain.com

Milling & Baking News - December 6, 2005

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