Milling & Baking News - August 12, 2008 - 36

Ingredient Week

Sweeteners

Refined beet sugar offers were raised
5c a lb through September 2009 by some
major processors last week and traders
expected others to follow. Trading was
negligible at the higher price but light at
the previous 40c level.
Beet sugar prices were at 40@45c a
lb nationwide for spot through Sept.
30, 2009, or the 2008-09 marketing
year. Cane sugar prices held at 40c
through 2009.
The U.S. Department of Agriculture
last week increased the 2007-08 tariff
rate quota (T.R.Q.) for imported refined
sugar by 300,000 tons, raw value, from
94,251 tons, because of a tight market
for refined sugar due to significantly reduced domestic cane refining capacity
and a smaller 2008 sugar beet crop. The
T.R.Q. will open on Aug. 14 and sugar
can be entered until Dec. 31, 2008.
Traders expect the quota will fill rapidly because it is on a "first-come, firstserved" basis. Some sugar will come
from Canada with smaller amounts from
other countries, they said. Mexico, which
already may ship unlimited amounts of
sugar duty free to the U.S. under the
North America Free Trade Agreement, is
not affected by the change.
Sugar buyers strongly had urged the
U.S.D.A. to increase the refined sugar
quota. The lack of cane refining capacity prohibited an increase in the raw import quota, which typically would be the

Beet and cane sugar

U.S.D.A.'s first choice, traders said.
The American Sugar Alliance at last
week's International Sweetener Symposium in Big Island, Hawaii, called the
U.S.D.A. action premature. "We are unaware of any sugar buyer in this country
who is having trouble finding sugar,"
the A.S.A. said.
But many traders called the T.R.Q. increase a "non event" because most business already was done for this year. "The
impact is on ending stocks for next year,"
one trader said.
Buyers generally were well covered
for the remainder of 2007-08 (ending
Sept. 30), but many still had some needs
to cover for next year.
Some beet processors were nearly sold
out of prospective 2008-09 (2008 crop)
sugar while others still had as much as
40% unsold. The latter said they were
comfortable with the amount already
sold. Cane refiners also were satisfied
with the amount of 2008-09 production
they had booked and were not pressing
for additional sales.
Sugar beet crop conditions showed
mixed changes in the week ended Aug.
3, with ratings improving in Minnesota
but declining in North Dakota and Colorado, while the Michigan crop "continued to do well," the U.S.D.A. said.
Condition of the cane crop in Louisiana
improved.
The corn sweetener market remained
quiet and shipments were seasonal. MBN

Bakery Shortening

Bookings of bakery shortening expanded last week. Prices dropped, with
losses wide in several ingredients.
Soybean oil prices buckled with futures down sharply and the cash basis
barely steady. Soybean oil futures prices
plunged along with the rest of the soy
complex. Weather was nearly ideal in
key U.S. soybean-growing areas. Crude
oil prices continued to decline, which
helped pull soybean oil and other commodity futures prices down in their
wake. The Commodity Credit Corp.
purchased 32,910 tonnes of soybean oil
for donation abroad, but the sale failed
to arrest the downward momentum in
futures pricing.
Several bakers and other soybean
oil users took advantage of the drop in
prices to extend soybean oil coverage
through September. Individual buyers
booked initial supply into October-November, but most held back in the hope
prices would continue to weaken. Basisonly coverage was extensive through the
end of the year.
The other major fats and oils followed
soybean oil lower. Palm oil prices found
additional pressure from mounting
stocks in Malaysia and Indonesia with
world export demand falling further behind strong production.
Canola oil bent under the weight of
outstanding prospects for the 2007 Canadian canola crop. MBN

Sweeteners
Delivered basis, cents per lb
42% HFCS spot price1

f.o.b. plant, cents per lb

HFCS list price2
Regular
- Change from - Year
corn
Aug. 8
Aug. 1 July 25 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Aug. 8
Year ago
Midwest beet 40.00 @ 45.00 +2@5c +2@5c 25.50
19.875 East
18.875
21.875 net
173/8@ 175/8 143/8@ 145/8
31.35@33.35
Pacific beet
40.00 @ 45.00 +2@5c +2@5c 27.50 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
39.95 @ 40.00
-
-
29.20 Northeast 18¾@ 19 15¾@ 16
21.625 West
20.625
23.625 net
Southeast 187/8@ 191/8 157/8@ 161/8
33.35@35.35
*Spot raw plus 7% plus 14c with 2% cash discount.
21.125
20.125
23.125 net
Southwest 18½@ 18¾ 15½@ 15¾
Raw cane
21.825
20.825
23.825 net
West
193/8@ 195/8 163/8@ 165/8
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
August-September
October-December
January-March
April-June
July-September

Aug. 8
23.50
23.50
23.30
23.15
23.25
23.25

- Change from -
Aug. 1 July 25
-
-.75
-
-.75
+.25
+.05
+.05
+.15
+.05
+.10
+.05
-

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

Year
ago
22.10
22.10
21.45
21.10
21.20
21.35

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Aug. 8
- Change from -
Delivery
close
Aug. 1
July 25
August
50.39
-6.22
-8.78
September 50.57
-6.26
-8.91
October
50.87
-6.29
-8.94
December 51.50
-6.31
-8.95
January
52.03
-6.27
-8.90
March
52.63
-6.21
-8.84

Edible oils
Bulk, cents per lb
Year
ago
36.28
36.54
36.80
37.26
37.56
37.85

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
August
47.89 @48.39
September
48.07 @48.57
October
48.37 @48.87
November
48.69 @49.19
December
49.00 @49.50
January
49.53 @50.03
February
49.83 @50.33
36 / August 12, 2008

Milling & Baking News

Western points
47.39 @47.64
47.57 @47.82
47.87 @48.12
48.19 @48.44
48.50 @48.75
49.03 @49.28
49.33 @49.58

Aug. 8
Soybean oil,
Decatur
48.50
Loose lard, Chicago 49.50
Edible tallow,
Chicago
46.75
Cottonseed oil,
Miss. PBSY
71.00
Palm oil, ports
50.50
Palm kernel oil,
ports
61.50
Coconut oil
74.50
Peanut oil,
Southeast
110.00
Corn oil, Decatur
72.75
Sunflowerseed oil,
Midwest
92.00
Canola oil, Midwest 59.00

- Change from - Year
Aug. 1 July 25 ago
-6.25
-3.00

-8.75
-5.00

34.00
36.00

-1.00

-2.75

34.75

-7.25
-3.75

-11.00 41.75
-6.00 41.75

-1.00
-4.00

-3.00
-4.00

50.25
47.25

-
-.50

-
-7.75

70.00
41.50

-2.00
-6.25

-3.00 67.00
-10.50 44.00

bakingbusiness.com / world-grain.com

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Milling & Baking News - August 12, 2008

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