Milling & Baking News - March 14, 2006 - 55

I N G R E D I E N T

Sweeteners

W E E K

Activity in sweeteners was minimal
last week, with pricing unchanged and
not well defined in some instances. Spot
raws gained 20 points, and deferred finished 15@30 points higher. Corn sweeteners were inactive and unchanged.
While individual sugar buyers continued to point to pockets of activity, most
agreed overall business was light. Sellers
estimated unsold volume at 20% to 25%
of potential. Some in the market became
increasingly aware that significant accounts had booked relatively little beyond the first quarter, and some had no
commitments after April 1.
As has been true for the past few
weeks, some 50-lb and 100-lb bags again
moved at unchanged prices in limited
quantities. Processors maintained asking prices for bulk sugar at 39½c a lb
f.o.b. Midwest and at 40½c Northeast,
Southeast and West, with almost no material selling at those prices. West coast
processors maintained they had nothing to sell nearby. Still, a number of prospective buyers in the various markets
showed no interest in paying more than
36½c Midwest, and some sought to discount even this level. There were hints
of lower pricing. There also were major
buyers who were largely covered and
who said these lower prices were not
readily available. Some acknowledged
a "two-price" system was in effect.

Beet and cane sugar

A number of users indicated increased
interest in coverage for 2006-07.
The WASDE report issued March 10
projected U.S. sugar supply for 200506 off 51,000 tons from February, to
11,975,000 tons. Production was down
30,000 tons for beet sugar and 23,000
tons for cane. Use was up 100,000 tons, to
10,465,000 tons, due to strong deliveries.
Ending stocks were down to 1,510,000
tons, or 14.4% of use.
The trade continued to point to deterioration within remaining beet piles.
One major processor estimated losses at
5% above normal.
The Domino cane refinery in Chalmette, La., damaged by Hurricane Katrina, continued to operate with satisfactory refining operations but lagging
packaging and rail shipments.
The corn sweetener market had
minimal reaction to a World Trade Organization ruling against Mexican restrictions on H.F.C.S. imports. Mexico
indicated the 20% soft-drink tax will
be eliminated. H.F.C.S. processors indicated they have increased confidence
in future pricing and resulting margins.
Spot supplies of H.F.C.S. were surprisingly tight for the time of year. MBN

Bakery Shortening

Bookings of bakery shortening were
light last week. Prices changes were
mixed.

Soybean oil prices declined. Losses in
soybean oil futures prices combined with
a weaker cash basis to pressure product
pricing. But soybean oil futures prices lost
only some of the ground gained the previous week and remained much higher
than the trade thought justified. Expected
expansion in demand for soybean oil for
production of biodiesel often was cited as
a supportive feature. But most analysts
held the strength in the futures market
primarily rested on heavy speculative
buying by commodity and index funds.
High soybean oil futures prices kept
most buyers from completing additional
bookings for April-June. At the same
time, additional buyers locked in basis
levels with suppliers. It was suggested
basis-only coverage through April-June
has expanded to 80%, with basis coverage for July-September already at 50%.
Completed bookings of soybean oil
through June remained at only about a
third of the expected total.
The U.S. Department of Agriculture
raised from February its projection for
2005-06 soybean oil ending stocks by 225
million lbs, to 2,679 million. At the same
time, it raised its forecast for the average
price of soybean oil in the current year
by a half-cent, to 21@23c a lb.
Palm oil was a follower to the soybean
oil market. Lard and tallow declined.
Corn, sunflowerseed and cottonseed oils
stood out as gainers. 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
March 10 March 3 Feb. 24 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
March 10 Year ago
Midwest beet 36.50 @ 37.50
-
-
23.00
14.00
13.00
16.00 net
93/8@ 97/8
11½@ 12
East
24.10@26.10
Pacific beet
37.50 @ 38.50
-
-
24.00 Midwest
7
3
15.55
14.55
17.55 net
Midwest
23.10@25.10
Cane*
40.10 @ 40.15
-
-
25.35 Northeast 12 /8@ 13 /8 10¾@ 11¼
15.75
14.75
17.75 net
Southeast
13@ 13½ 107/8@ 113/8
West
26.10@28.10
*Spot raw plus 7% plus 15c with 2% cash discount.
15.25
14.25
17.25 net
Southwest 125/8@ 131/8 10½@ 11
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
March 10 March 3 Feb. 24
Nearby
22.70
+.20
-.80
March
22.70
+.20
-.80
April-June
22.70
+.20
-.80
July-September
22.80
+.30
-.80
October-December 22.45
+.15
-.35
January-March
22.45
+.15
-.45

Year
ago
20.45
20.45
20.45
20.60
20.70
20.70

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
March 10 - Change from -
Delivery
close
March 3
Feb. 24
March
23.85
-.71
+.89
May
24.16
-.75
+.79
July
24.57
-.70
+.83
August
24.70
-.66
+.82
September 24.92
-.60
+.90
October
25.06
-.61
+.88

Edible oils
Bulk, cents per lb
Year
ago
23.96
24.04
24.16
24.10
23.71
23.35

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
March
22.35 @22.60
April
22.51 @22.76
May
22.66 @22.91
June
22.87 @23.12
July
23.07 @23.32
August
23.20 @23.45
September
23.42 @23.67

56 / Milling & Baking News, March 14, 2006

Western points
21.85 @22.10
22.01 @22.26
22.16 @22.41
22.37 @22.62
22.57 @22.82
22.70 @22.95
22.92 @23.17

- Change from - Year
March 10 March 3 Feb. 24 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

23.00
16.50

-1.00
-.50

+.75
+.25

24.50
16.50

18.25

-.25

+.25

19.00

32.00
21.25

+.75
-.75

+2.25 28.25
-1.75 21.50

31.75

-.50

-1.75

33.75

28.25
45.00
24.75

-
-
+.50

-
-
-1.25

32.75
57.00
28.50

34.75
30.50

-.75
-.75

+1.25 45.00
+1.25 31.50

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Milling & Baking News - March 14, 2006

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