Milling & Baking News - January 30, 2007 - 39

I N G R E D I E N T

Sweeteners

W E E K

Sugar markets remained in their seasonal January-February lull. Some business continued to trickle out at generally
steady prices. Nearby raw cane values
were 30 points higher, with deferred up
5 to 30 points.
Trading for Midwest beet sugar continued to range from 25½@26c a lb f.o.b.
There was less talk than in recent weeks
of sugar trading under the quoted range
in the Midwest. Some traders saw that
as a sign prices were at or near bottom,
but others saw it as simply a slowdown
in trading. There was some concern that
buyers were slow to unload rail cars,
in some cases resulting in slow turnaround and clogged logistics. But others noted such a slowdown was typical
for the time of year.
Prices in the Southeast and the south
central region held at 27@27½c a lb f.o.b.,
and Northeast at 28@28½c. West coast
prices were at 28@28½c a lb f.o.b., but
small trades were noted above 30c.
Ideas on the amount of sugar yet
to be booked varied widely, but 20%
or less was a common estimate. Most
processors said they were comfortable
with the amount of sugar they have
sold so far this year and generally were
on plan through January. The large beet
crop in the Red River Valley was being
worked through. Some losses due to
warm temperatures a few weeks ago

Beet and cane sugar

were noted, but recent cold weather
greatly helped beet piles.
There remained some large accounts
that still needed to book some of their
sugar needs for the last half of the year.
Most seemed comfortable to wait as long
as possible, expecting prices to weaken
in April-June.
While most factors in the sugar market
have been bearish so far this year, the situation in Mexico appeared to be developing into a more bullish scenario. Mexican
production of semi-refined standard raw
sugar from the 2006-07 harvest was down
16% from a year ago as of late January.
Cane sugar prices in Mexico were said to
be slightly above prices in the U.S., making exports to the north financially as well
as politically unfavorable.
More voices were beginning to predict
that Mexican sugar production this year
might just be enough to meet domestic
needs, resulting in little, if any, supply to
export to the U.S. Should that scenario
evolve as the year goes on, supplies in
the U.S. could tighten and prices firm.
Some traders attributed higher sugar
No. 14 futures prices last week in New
York to the Mexican supply situation.
Corn sweetener markets were quiet. MBN

Bakery Shortening

Bookings of bakery shortening were
limited last week. Price changes were
minor and mixed.

Soybean oil prices eased ¼c a lb. Soybean oil futures prices declined in sync
with the rest of the soy complex. The
cash basis on soybean oil was mostly
steady. Forward basis levels remained
attractive. Additional soybean oil buyers booked basis only through June or
even September. Buyers continued to
hold off on completing their soybean oil
bookings in the hope soybean oil futures
prices would weaken with the approach
of the South American soybean harvest.
Completed bookings extended buyers'
soybean oil ownership no more than
four weeks ahead. Off-take of soybean
oil for use in manufacturing biodiesel
continued to fall short of expectations.
Recent declines in crude oil prices were
a factor. Those biodiesel facilities operating often turned to lower-priced raw
materials, including edible tallow.
Increasing demand for oils with no
trans fats continued to support prices
of palm oil, cottonseed oil, canola oil,
sunflowerseed oil and corn oil. While
the palm oil market recently exhibited
independent strength on concerns of a
production cut because of severe flooding in Malaysia and Indonesia, as those
concerns abated, palm oil has become
more responsive to movements in the
U.S. soybean oil market. One merchandiser suggested strong palm oil prices
slowed the expansion in usage of the
oil in the U.S. 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
Jan. 26
Jan. 19 Jan. 12 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
Jan. 26
Year ago
Midwest beet 25.50 @ 26.00
-
-
35.50
16.875 East
15.875
18.875 net
143/8@ 145/8 11½@ 12
28.35@30.35
Pacific beet
28.00 @ 28.50
-
-
37.50 Midwest
7
3
18.425 Midwest
17.425
20.425 net
27.35@29.35
Cane*
28.60 @ 28.75 +.30
+.10 38.50 Northeast 15¾@ 16 12 /8@ 13 /8
18.625 West
17.625
20.625 net
Southeast 157/8@ 161/8 13@ 13½
30.35@32.35
*Spot raw plus 7% plus 6.50c with 2% cash discount.
18.125
17.125
20.125 net
Southwest 15½@ 15¾ 125/8@ 131/8
Raw cane
3
5
18.825
17.825
20.825 net
West
16 /8@ 16 /8 13½@ 14
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
January-March
April-June
July-September
October-December
January-March

- Change from -
Jan. 26 Jan. 19 Jan. 12
20.15
+.30
+.10
20.15
+.30
+.10
20.00
+.20
+.10
20.05
+.30
+.15
19.90
+.15
+.15
20.15
+.05
-.15

Year
ago
25.25
25.25
24.90
24.95
22.70
22.75

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Jan. 26
- Change from -
Delivery
close
Jan. 19
Jan. 12
March
29.00
-.30
-.15
May
29.48
-.33
-.04
July
29.95
-.29
+.02
August
30.12
-.26
+.02
September 30.29
-.26
-.01
October
30.48
-.22
+.08

Edible oils
Bulk, cents per lb
Year
ago
22.05
22.39
22.79
22.91
23.03
23.17

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
January
27.25 @27.50
February
27.25 @27.50
March
27.25 @27.50
April
27.74 @27.99
May
27.98 @28.23
June
28.22 @28.47
July
28.45 @28.70

40 / Milling & Baking News, January 30, 2007

Western points
26.50 @27.00
26.50 @27.00
26.50 @27.00
26.99 @27.49
27.23 @27.73
27.47 @27.97
27.70 @28.20

- Change from - Year
Jan. 26 Jan. 19 Jan. 12 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

27.50
23.00

-.25
-

+.50
-

21.75
18.00

24.00

18.00

31.00
30.50

-.50
+.50

-
+.50

29.25
21.50

42.00
35.00

+3.25
-.50

+.50
-.50

31.50
28.25

48.00
30.00

-
+1.00

-3.00 48.00
+1.00 27.00

56.00
39.00

-.25
+.25

+1.00 32.50
+.50 28.50

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Milling & Baking News - January 30, 2007

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