Milling & Baking News - November 7, 2006 - 44

I N G R E D I E N T

W E E K

Sweeteners

Corn sweetener business continued to
wrap up last week, while weakness prevailed in sugar markets.
Additional sources confirmed the
substantial completion of 2007 corn
sweetener bookings at September offer
prices of 2.85c a lb above current-year
contract levels, plus fuel surcharges,
for 42% and 55% HFCS, regular corn
syrup and 95% refined liquid dextrose.
Dry dextrose contracts were done at
3.25c a lb above 2006 contract prices.
Participants were finishing their contracts with only last-minute issues to
be resolved. This was the earliest date
for annual contracting on record.
Prices for 2007 were the highest on
record or at least the highest in decades.
Midwest 42% HFCS was at 15.85c a lb in
the third quarter of 1994, but the yearly
average was lower. Annual numbers in
2000 were as low as 8c a lb and about
9¼@93/8c for a three-year period, 20022005. The extended period of lower corn
sweetener pricing reflected surplus capacity, which gradually disappeared as
old plants closed and demand improved.
Ethanol has played a role in recent years.
At the onset of this industry, corn
sweetener processors sought to price
products in relation to sugar, but these
products have separated to some extent
in recent years. However, there now
have been isolated reports of some sub-

Beet and cane sugar

Midwest beet
Pacific beet
Cane*

*Spot raw plus 7% plus 8.50c with 2% cash discount.

Raw cane
Delivered refiner, cents per lb
Change from
Contract
Nov. 3 Oct. 27 Oct. 20
Nearby
19.60
-.40
-.60
October-December 19.60
-.40
-.60
January-March
19.60
-.40
-.60
April-June
19.75
-.35
-.60
July-September
20.00
-.40
-.55
October-December 20.20
-.40
-.70

Bakery Shortening

Bookings of bakery shortening were
limited last week. Price changes were
mixed. Shipments were seasonal heavy.
Soybean oil prices rose ¼c a lb, with

the cash basis still strong and soybean
oil futures prices losing ground early
but rallying toward week's end to finish
with narrow gains. The late-week rally
in soybean complex futures followed
strength in corn futures, which were
given a boost when private crop forecasters projected 2006 corn production
below the most recent U.S. Department
of Agriculture estimate.
New bookings of soybean oil were
limited, with buyers holding back in
hopes a record-large crop will pressure
prices in coming weeks. Buyers earlier
had booked basis only well into 2007.
While bookings of soybean oil were
meager, bookings of other oils, particular
those with no trans fat, including palm
oil, canola oil, corn oil and cottonseed oil,
were fairly brisk last week. KFC Corp.
indicated it would no longer fry chicken
in oils containing trans fat, switching instead to a low-linolenic soybean oil.
Palm oil prices rose, pulled higher by
the strong soybean oil market.
The U.S. Census Bureau estimated
soybean oil stocks at the end of September totaled 2,967,966,000 lbs, down from
3,061,179,000 lbs at the end of August
but up from 1,699,000,000 lbs at the end
of September 2005.
North Dakota sunflower harvest was
78% completed on Oct. 29, compared
with 58% as the recent five-year average
for the date. MBN

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

f.o.b. plant, cents per lb
Change from
Nov. 3
Oct. 27 Oct. 20
28.25 @ 29.25 -.25
-.25
30.00 @ 31.00 -1.00
-1.00
30.05 @ 30.10 -.45
-.65

stitution back toward sugar.
Sugar softened, although the extent of
the declines was the subject of dispute.
Midwest beet sugar for nearby and for
2007 was quoted at 28¼@29¼c a lb f.o.b.
Participants reported offers at 30c a lb delivered, with some claiming 29c Chicago.
Major sellers said they booked mediumsized accounts for 2007 at 29¼c f.o.b.
Southeast and south central quotes were
at 29@30c f.o.b., some holding back for
29½@30c f.o.b. Northeast was 29½@30½c
f.o.b., although some claimed bookings
up to 31½c. The West coast trade quoted
30@31c f.o.b., acknowledging reports of
lower numbers.
The large beet sugar crop and problems finding storage was the primary
bearish factor. Traders described competition with cane for swing accounts
as painful.
New reports of freeze damage in the
Red River Valley surfaced. There were
questions about beets that potentially
might not be processed. Two weeks ago,
the American Crystal Sugar Co. confirmed it would not harvest 8% of its
acres in the Red River Valley because the
crop exceeded processing capacity. MBN

Year
ago
40.00
41.50 Midwest
42.35 Northeast
Southeast
Southwest
West

Nov. 3
143/8@ 145/8
15¾@ 16
157/8@ 161/8
151/2@ 15¾
163/8@165/8

H.F.C.S. list price2

42% H.F.C.S. wet 55% H.F.C.S. wet
Year ago
15.875
18.875 net
9@ 11¾
17.425
20.425 net
103/8@ 131/8
17.625
20.625 net
101/2@ 13¼
17.125
20.125 net
101/8@ 127/8
3
17.825
20.825 net
11 /8@ 13¾

Regular
corn
syrup3
Dextrose
16.875 East
27.35@29.35
18.425 Midwest
26.35@28.35
18.625 West
29.35@31.35
18.125
18.825

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

Year
ago
22.00
22.00
21.80
21.60
21.80
21.10

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Nov. 3
- Change from -
Delivery
close
Oct. 27
Oct. 20
December 27.68
+.18
+1.14
January
28.04
+.23
+1.19
March
28.38
+.20
+1.21
May
28.65
+.23
+1.15
July
28.93
+.18
+1.30
August
29.03
+.23
+1.28

Edible oils
Bulk, cents per lb
Year
ago
22.94
23.17
23.44
23.59
23.78
23.83

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
November
26.68 @27.68
December
26.68 @27.68
January
27.29 @28.04
February
27.46 @28.21
March
27.63 @28.38
April
27.77 @28.52
May
27.90 @28.65

44 / Milling & Baking News, November 7, 2006

Western points
26.18 @27.18
26.18 @27.18
26.79 @27.54
26.96 @27.71
27.13 @27.88
27.27 @28.02
27.40 @28.15

- Change from - Year
Nov. 3 Oct. 27 Oct. 20 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

27.75
24.00

+.25
-1.00

+1.50 23.50
-3.00 28.00

20.00

30.00
26.00

+.25
+1.50

+2.00 35.00
+1.50 21.25

37.00
29.75

+2.75
-.50

+2.75 32.00
+.25 29.25

54.00
26.25

-
+.75

55.00
37.25

-
+.25

+1.25 37.50
+1.75 31.50

-.50

20.75

58.00
30.00

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Milling & Baking News - November 7, 2006

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