Milling & Baking News - June 17, 2008 - 51

Ingredient Week

Soy Products

Soy flour bookings and shipments
slowed last week due to soaring prices
and flooding. Prices were up $1.80 a cwt
from a week ago and were record high.
Surging prices slowed typically steady
and strong buying interest for soy flour,
processor sources said. Additionally,
heavy rains and severe flooding hampered transportation and forced a soybean processing plant to temporarily shut
down in northeast Iowa. Lead times for
new orders dropped to about a week.
In its June 10 supply/demand report,
the U.S. Department of Agriculture estimated the carryover of soybeans on Sept.
1, 2008, at 125 million bus, down 20 million bus from May due to a like increase in
exports for the current year. The carryover
on Sept. 1, was projected at 175 million
bus, down 10 million bus from May due
to lower beginning stocks partially offset
by a projected 10-million-bu decrease in
crushings for 2008-09. The average farm
price was projected at $11@12.50 a bu, up
50c on each end from May.
Soybean futures prices shot higher
with all months topping $15 a bu. Prices
of the three nearby soybean meal contracts topped $400 a ton. Although the
U.S.D.A. did not lower its projected 2008
soybean production of 3,105 million bus,
traders were concerned the crop could
shrink because of losses from severe
weather, ideas that not all intended acres
will be planted and that yields would be
lower in late-planted soybeans.
In its first condition assessment of the
season, the U.S.D.A. rated good to excellent 57% of the soybean crop in the 18 major states compared with 70% a year ago.
Soybean planting and emergence lagged
the averages significantly. Planting on

Chicago corn and soy futures
- Change from - Year
Corn Futures June 13 June 6 May 30 ago
$ per bu
July
7.31¾
+81
+132½ 4.19
September
7.45¾
+82
+133¼ 4.26
December
7.65
+87¼ +138½ 4.24¼
March
7.76½
+84¾ +136½ 4.32½
May
7.80½
+83½ +132
4.39
July
7.81½
+80¼ +126¾ 4.41½
Soybeans
$ per bu
July
15.60
+102½ +196½ 8.47¼
August
15.59¾
+102½ +191
8.54½
September
15.40
+93½ +183¾ 8.62¾
November
15.31
+91½ +176½ 8.80¾
January
15.44
+90
+175½ 8.88¼
March
15.46
+86
+166¾ 8.91
Soybean Meal $ per ton
July
409.20
+36.20 +67.70 235.40
August
407.70
+34.70 +63.60 236.70
September
402.70
+34.40 +61.30 238.50
October
390.00
+34.30 +57.50 240.50
December
386.50
+31.80 +54.20 243.20
January
387.00
+31.30 +53.50 243.50
bakingbusiness.com / world-grain.com

June 8 was 77% completed versus 89% as
the 2003-07 average, and emergence was
56% compared with 74% as the average.
Based on intentions in the U.S.D.A.
Prospective Plantings report, more than
16 million acres remained to be planted
in the 18 major states as of June 8. MBN

Corn Products

Corn meal sales were mixed last week.
Prices surged as corn prices moved to
record-high levels.
Some milling sources indicated steady
sales as buyers covered month-to-month
needs as prices advanced. But others
noted some increase in sales, including
coverage for all of 2009 in one case, as
buyers saw little hope of weaker prices.
The best interest was for larger flaking
grits from breakfast cereal manufacturers. Corn mills ran five to six days.
Corn futures prices continued their record-setting pace with all contracts except
December 2009 well over $7 a bu. A high
of $7.83½ a bu was set in the July 2009 contract as $8-a-bu corn suddenly appeared
within reach. Severe flooding in prime
corn growing areas of the Midwest, along
with a sharply lower yield projection in
the July 10 U.S.D.A. supply/demand report, were the primary price drivers.
The U.S.D.A. estimated the carryover
of corn on Sept. 1, at 1,433 million bus,
up 50 million bus from May due to a reduction in exports of the same amount
for the current year. The carryover on
Sept. 1, 2009, was projected at 673 million bus, down 90 million bus from May.
Production in 2008 was projected at
11,735 million bus, down 390 million bus
from May due to a cut of 5 bus per acre
in projected yield, to 148.9 bus per acre.
Feed and residual use was projected

at 5,150 million bus, down 150 million
bus from May due to reduced demand
because of higher prices and increased
feeding of wheat and sorghum. Food,
seed and industrial use was unchanged
at 5,360 million bus, including use for
ethanol at 4,000 million bus in 2008-09.
Projected exports were 2,000 million bus,
down 100 million bus from May.
The condition of the corn crop declined
in the week ended June 8 as the U.S.D.A.
rated 60% of the crop good to excellent
compared with 63% a week earlier and
77% at the same time a year ago. MBN

Oats

Bookings of food grade oat flakes
were seasonally slow. Prices rose 75c a
cwt and were the highest on record. Oats
futures prices soared, following corn.
The Quaker Oats plant in Cedar Rapids, Iowa, was temporarily closed and
rail transportation was disrupted in the
region due to flooding.
Soil moisture improved for Canada's
oats crop, but some areas needed warmer weather to promote development. MBN

Rice

Milled rice prices held steady and byproduct prices were steady to weaker
last week. U.S. Department of Agriculture 2007 crop world milled rice prices
were unchanged.
The rice crop in the six major states was
rated 72% good to excellent as of June 8,
below 76% a year ago, the U.S.D.A. said.
Rough rice futures ended with modest
gains, mostly from a strong close Friday.
Some pressure came from a $2-a-cwt
drop from May in the projected 2008-09
average price of rough rice in the June 10
U.S.D.A. supply/demand report. MBN

Rice

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt
- Change from -
June 13
June 6
May 30
Soy flour
Bulk
25.44 @ 25.46 +1.80@+1.80 +3.36 @+3.21
Sacked
26.46 @ 27.44 +1.80@+1.80 +3.21 @+3.36

Corn meal
$ per cwt
June 13
Chicago, bulk
19.25@ 25.66
Chicago, sacked 21.02@ 27.49
New York, bulk 20.92@ 27.39
New York, sacked 23.34@ 29.78

- Change from -
June 6
May 30
+1.63@ +2.55 +2.66 @ +3.22
+1.63@ +2.55 +2.66 @ +3.22
+1.63@ +2.55 +2.66 @ +3.22
+1.63@ +2.55 +2.66 @ +3.22

Oats
- Change from -
Minneapolis
June 13
June 6 May 30
Food grade flakes, f.o.b.,
bagged, $ per cwt
31.75@32.75 +75c
+$1.75
Milling quality oats, No. 2 heavy,
$ per bu
4.20
+20¾c
+33c
Oat hulls, $ per ton
25@35
-
-

Offers f.o.b. mills, $ per cwt, bagged
- Change from - Year
Cash
June 13
June 6 May 30 ago
Long grain
40.00@45.00
-
- 18.50
Medium grain 42.00@45.00
-
- 20.00
Parboiled
47.00@51.00
-
- 20.00
Second
heads, bulk 28.50@30.00
-
- 15.50
Brewers
25.00@27.00
-
- 15.00
Rice flour
...
...
...
...
f.o.b. mills, $ per ton
Rice bran
90@100
-
- 78.00
Rice hulls
20@25
-
- 15.00
U.S.D.A. world price milled - $ per cwt
Long grain
28.00
-
- 12.08
Medium grain
27.03
-
- 11.90
Short grain
26.99
-
- 11.93
Broken
18.84
-
-
6.04
C.B.O.T. rough rice futures - $ per cwt
July
20.30
+0.34 +1.20 10.72
September
19.04
+0.38 +0.54 11.11
November
19.09
+0.34 +0.49 11.40
January
19.39
+0.34 +0.46 11.61
Milling & Baking News

June 17, 2008 / 51

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Milling & Baking News - June 17, 2008

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