Milling & Baking News - June 29, 2010 - 46

Ingredient Week 

Sweeteners
Sugar markets broke out of their
summer lull last week as more users
appeared to be lacking July-September
coverage. Prices once again advanced.
Corn sweeteners were mostly routine.
Bulk refined sugar offers for delivery
through Sept. 30 were raised 4c a lb, to 53c
f.o.b., with some offers still at 55c. Supply
for the current marketing year was tight
to lacking. Shipments remained brisk, but
trade sources indicated deliveries in some
cases fell behind by a week or two.
Some traders were surprised at the level
of sugar demand for July-September, the
final quarter of the 2009-10 marketing
year, suggesting users either waited too
long before buying in hopes of lower prices, or sugar-containing product sales were
better than expected and manufacturers
simply needed more sugar. Because of the
amount of uncovered business, some suggested price advances weren't over for the
summer. They also expected strong prices
will spill over into the new marketing year,
pulling October-December values higher.
Refiners continued to import tier-two
raws to meet ongoing demand amid
"maxed out" tariff rate quota (T.R.Q.)
imports. Stronger world raw sugar futures prices in New York pushed domestic raw futures higher as refiners sought
to maintain the needed spread of about
18c a lb to cover the duty and other costs
of importing tier-two supply.
Although demand remained strong,

Beet and cane sugar

global supplies continued to improve.
Sugar outturn through June 1 from the
major producing center-south region of
Brazil was running 31% ahead of the
same period last year, according to Unica, Brazil's cane industry association.
Shipments from Mexico to the United
States remained light with Mexico's crop
down about 3% from a year ago and
prices there still high. Mexico indicated
it would not need to import more sugar.
U.S. sugar producers and industrial
users sent a joint letter in mid-June to the
U.S. Department of Agriculture suggesting the department announce the 201011 T.R.Q. early so foreign shipments
could arrive when the marketing year
begins Oct. 1. The U.S.D.A. must announce next year's T.R.Q. before the end
of the marketing year and has typically
waited until September to do so.
Some U.S. beet processors said they
hope to begin slicing early so new crop
sugar may be delivered before the end of
September, which would help relieve the
tight old crop supply situation. Beet crop
condition ratings remained high.
A U.S. Supreme Court decision last
week vacating a lower court ruling that
blocked the planting of "roundup ready"
alfalfa might be positive for sugar due to
a similar case involving sugar beets in
California, where a July 7 hearing is set. MBN

Bakery Shortening
Bookings of bakery shortening were

limited last week. Price changes were
mixed.
Soybean oil prices declined. Soybean
oil futures prices declined with the rest
of the soy complex with record South
American crops and a potential record
crop in the United States providing
pressure. The cash basis on soybean oil
was unchanged. While seasonal refinery
downtime was scheduled, soybean oil
stocks remained heavy and even grew
during the past month despite a smaller
soybean crush in May than in April.
The soybean crush in May 2010 was
133.8 million bus, down from 136.5
million bus in April and compared with
146.2 million bus in May 2009, according
to the U.S. Census Bureau. Soybean oil
stocks rose in May to 3.45 billion lbs from
3.35 billion lbs in April and compared
with 3.23 billion lbs in May 2009.
The premium to soybean oil prices
asked for canola oil widened on concern
many intended canola acres in Canada
may go unplanted because of heavy June
rains. Statistics Canada, on the basis of
a producer survey concluded by June
3, estimated canola acreage at a record
17.9 million acres, but the survey did not
reflect the impact of recent rainfall.
Palm oil prices resisted the downward
pull from soybean oil.
Lard and edible tallow prices also
showed strength because of relatively
light hog and cattle slaughter weights
and demand from the biodiesel sector. 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
June 25
June 18 June 11 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
June 25
Year ago
Midwest beet 53.00 @ 55.00 +4.00 +4.00 37.00
20.375 East
17.375
20.375 net
153/8@ 163/8 183/8@ 193/8
29.85@33.85
Pacific beet
53.00 @ 55.00 +4.00 +4.00 37.00 Midwest
¾
21.925 Midwest
18.925
21.925 net
28.85@32.85
Cane*
53.00 @ 54.00 +4.00 +4.00 37.15 Northeast 16¾@ 17¾ 19¾@ 20
22.125 West
19.125
22.125 net
Southeast 167/8@ 177/8 197/8@ 207/8
31.85@35.85
*Spot raw plus 7% plus 15.70c with 2% cash discount.
21.625
18.625
21.625 net
Southwest 16½@ 17½ 19½@ 20½
Raw cane
22.325
19.325
22.325 net
West
173/8@ 183/8 203/8@ 213/8
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
- Change from -
Contract
June 25 June 18 June 11
Nearby
33.95
+1.85 +2.70
July-September
33.95
+1.85 +2.10
October-December 28.75
+.65
+.75
January-March
28.35
+.30
+.50
April-June
28.15
+.45
+.40
July-September
27.85
+.25
+.10

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

Year
ago
22.60
22.60
22.60
23.00
23.00
23.00

Chicago soybean oil futures
Bulk in tank cars, cents per lb
June 25
- Change from -
Delivery
close
June 18
June 11
July
37.16
-.76
+.26
August
37.33
-.78
+.25
September 37.48
-.82
+.18
October
37.64
-.87
+.12
December 38.03
-.93
+.07
January
38.33
-.91
+.04

Edible oils
Bulk, cents per lb
Year
ago
36.08
36.24
36.39
36.54
36.89
37.23

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
June
34.41 @34.66
July
34.41 @34.66
August
34.58 @34.83
September
34.73 @34.98
October
34.89 @35.14
November
35.09 @35.34
December
35.28 @35.53
46 / June 29, 2010 Milling & Baking News

Western points
33.91 @34.16
33.91 @34.16
34.08 @34.33
34.23 @34.48
34.39 @34.64
34.59 @34.84
34.78 @35.03

- Change from - Year
June 25 June 18 June 11 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

34.75
36.00

-.75
+1.00

+.25 33.25
+1.00 31.50

35.50

+.50

41.25
41.00

+.75
+.25

+1.25 38.00
+.25 37.75

46.50
47.75

+1.00
+2.00

+.75 43.50
+2.00 40.50

68.50
41.25

-
+1.25

+1.50 58.00
+1.75 39.25

57.00
40.75

-
-.25

+1.00 53.00
+1.25 41.00

bakingbusiness.com / world-grain.com

30.50

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - June 29, 2010

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