Milling & Baking News - September 12, 2006 - 59

I N G R E D I E N T

W E E K

Sweeteners

Activity in sugar and corn sweetener
markets was slow after the holiday last
week. Traders puzzled over an apparent shortage of sugar in Mexico. Beet
and cane sugar prices were unchanged.
Spot raw values were 25 points lower,
deferred down 5@30 points.
Activity in corn sweeteners was routine. Some 2007 contract negotiations
have begun. Most talks were expected to
take place in October.
Although generally untested last
week, sugar prices for 2006-07 (beginning
Oct. 1) held at 31@32c a lb, f.o.b. Midwest, 31½@33c West coast and 33@33½c
Northeast. For the remainder of September, prices were a nominal 34@35c a lb.
Midwest, 35@36c Southeast and 36@37c
Northeast and West coast.
Buyers and sellers were at a standoff
for new 2006-07 business. Based on reports of a bumper sugar beet crop and
import quotas and domestic allotments,
buyers expected prices to decline. While
there has been a sense of some weakness
in prices, sellers still were unwilling to
drop asking prices. Some brokers noted
an increase in buyer inquiries last week.
Of special interest was the OctoberDecember quarter. Some contended
buyers were waiting too long and will
end up paying current 2006-07 asking
prices rather than desired lower levels.
They recommend buyers at least book

Beet and cane sugar

the quarter and hold off on longer-term
coverage. Most in the trade agreed there
were uncovered needs for the period.
Supporting sellers' stance of holding
at current prices was news that Mexico
had increased its sugar tender to 190,000
tonnes last week from 35,000 tonnes in
August. Mexico's apparent shortage
raised questions about how much, if any,
Mexican sugar would come to the U.S.
in 2006-07, and if existing sales would be
delivered. Sugar prices in Mexico were
said to be higher than in the U.S.
There continued to be confusion and
skepticism about the Mexican tender.
With shipments due by the end of December, processors said they still were
lacking key details that would allow
them to participate. The imports were intended to stabilize sugar prices in Mexico after some processors oversold when
world prices were high earlier this year.
Condition ratings of the Red River
Valley sugar beet crop continued to improve. Four per cent of the crop had been
lifted in North Dakota and 5% in Minnesota, compared with none last year and
as average for the date.
The condition of the Louisiana sugar
cane crop declined slightly. MBN

Bakery Shortening

Bookings of bakery shortening expanded last week. Price changes were
narrow.

Soybean oil prices rose ½c a lb from
the week before. While soybean oil futures prices weakened, their downward
move was offset by a rise in the cash basis on soybean oil. Soybean oil futures
prices responded to a decline in crude oil
prices and to the weight of record-large
soybean oil stocks. The expansion of the
biodiesel sector provided underpinning
to the market. But biodiesel production
wasn't expected to have a deep impact
on soybean oil stocks until last-half 2007,
according market analysts.
Cash soybean oil basis derived a
boost from a Commodity Credit Corp.
purchase of 11,020 tonnes for donation
abroad at prices seen justifying the higher levels.
With most soybean oil users already
holding extensive basis-only coverage,
the decline in soybean oil futures prices
encouraged several to complete coverage
of their September oil needs, and many
booked material for October as well. It
was suggested if the October soybean oil
future were to drop to 23½@24c, many
buyers would book a large portion of
their October-December requirements.
Palm oil weakened, influenced by the
downward move in soybean oil futures.
Lard prices moved yet higher, with buying for the fall baking season heavy. Offers of peanut oil were lacking. Canola
oil prices were firm at an 8¼c premium
to soybean oil prices. 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
Sept. 8
Sept. 1 Aug. 25 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
Sept. 8
Year ago
Midwest beet 34.00 @ 35.00
-
-
39.00
14.00
13.00
16.00 net
93/8@ 97/8
11½@ 12
East
24.10@26.10
Pacific beet
36.00 @ 37.00
-
-
39.00 Midwest
7
3
15.55
14.55
17.55 net
Midwest
23.10@25.10
Cane*
34.90 @ 35.00 -.25
-.25 39.85 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 11.50c 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
Contract
Nearby
October-December
January-March
April-June
July-September
October-December

- Change from -
Sept. 8 Sept. 1 Aug. 25
21.25
-.20
-.20
21.25
-.20
-.20
21.25
-.25
-.20
21.20
-.30
-.30
21.40
-.20
-.15
21.55
-.05
-

Year
ago
21.55
20.65
20.50
20.70
21.10
20.75

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Sept. 8
- Change from -
Delivery
close
Sept. 1
Aug. 25
September 24.50
-.28
-.45
October
24.72
-.19
-.48
December 25.11
-.21
-.44
January
25.45
-.22
-.44
March
25.83
-.23
-.53
May
26.20
-.23
-.55

Edible oils
Bulk, cents per lb
Year
ago
22.17
22.23
22.49
22.67
22.85
23.02

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
September
22.50 @22.75
October
22.72 @22.97
November
22.92 @23.17
December
23.11 @23.36
January
23.70 @23.95
February
23.89 @24.14
March
24.08 @24.33

60 / Milling & Baking News, September 12, 2006

Western points
22.25 @22.50
22.47 @22.72
22.67 @22.92
22.86 @23.11
23.45 @23.70
23.64 @23.89
23.83 @24.08

- Change from - Year
Sept. 8 Sept. 1 Aug. 25 ago
Soybean oil,
Decatur
Loose lard, Chicago
Edible tallow,
Chicago
Cottonseed oil,
Miss. PBSY
Palm oil, ports
Palm kernel oil,
ports
Coconut oil,
Peanut oil,
Southeast
Corn oil, Decatur
Sunflowerseed oil,
Midwest
Canola oil, Midwest

23.00
32.50

+.25
+.50

+.25 23.00
+1.50 18.00

20.00

+.75

+.50

19.50

27.50
24.75

-
-1.00

+.50
-1.00

31.75
20.50

35.00
30.00

-.25
+.50

-1.50
+.50

31.25
27.50

47.00
26.00

-
-

54.00
30.00

49.00
33.00

-
+.25

57.25
30.50

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Milling & Baking News - September 12, 2006

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