Milling & Baking News - July 13, 2010 - 38

Ingredient Week 

Sweeteners
News was aplenty in sugar markets last
week. The tariff rate quota (T.R.Q.) was
increased, new supply/demand numbers
were issued, and 2010-11 prices rose. Corn
sweeteners were quiet by comparison.
The U.S. Department of Agriculture on
July 2 raised the 2009-10 tariff rate quota by
300,000 short tons, raw value. The increase
raised the 2009-10 T.R.Q. to 1,731,497 tons,
which must be imported by Sept. 30, 2010.
It was the second T.R.Q. increase this year.
The T.R.Q. increase resulted in a plunge
in the New York September domestic raw
sugar futures contract as the spread between domestic and world raw futures no
longer needed to be wide enough to cover
import duties refiners pay to bring in
above-quota sugar. Some traders suggested the T.R.Q. increase was a "non-event"
since refiners may have already imported
about half of the increase as above-quota
sugar and would have brought the remainder in anyway.
The increase in the T.R.Q. did little to
soften bulk refined sugar prices with offers
for delivery through Sept. 30 holding firm
at 53c a lb f.o.b. as supply for the current
marketing year was expected to remain
tight. Prices for 2010-11 and in some cases
for calendar 2011 were raised to 43c a lb
f.o.b. from 40@42c by major cane and beet
processors. Only limited fill-in sales were
noted for the current year with new trading for 2011 absent.
In its July 9 World Agricultural Supply

Beet and cane sugar

and Demand Estimates, the U.S.D.A.
forecast 2009-10 sugar ending stocks at
1,268,000 tons, raw value, up 118,000 tons
from its June forecast but down 231,000
tons from a year earlier, resulting in a
stocks-to-use ratio of 11.8%. Ending stocks
for 2010-11 were projected at 952,000 tons,
up 188,000 tons from June but 316,000
tons below the current year with the
stocks-to-use ratio at 9%. For 2009-10, the
U.S.D.A. reduced production by 42,000
tons, to 7,805,000 tons, and raised imports
160,000 tons, to 2,729,000 tons, reflecting a
270,000-ton increase in T.R.Q. imports, at
1,824,000 tons, partially offset by a 110,000ton decrease in shipments from Mexico,
at 430,000 tons. For 2010-11, production
was projected at 8,235,000 tons, up 70,000
tons from June, while imports were
unchanged at 2,084,000 tons. Deliveries
were unchanged for both years.
The U.S.D.A. forecast 2009-10 Mexican
sugar output at 5,120,000 tonnes, raw value, up 35,000 tonnes from June, and 201011 production was projected at 5,450,000
tonnes.
Prices of refined sugar in Monterrey,
Mexico, were around 41½c a lb in early
July, down about 10c, or 20%, since April,
trade sources said, making shipments to
the United States profitable for the first
time in months, if supply is available. MBN

Bakery Shortening
Bookings of bakery shortening expanded early last week, but the activity

subsided once prices turned higher. A
firmer tone in pricing was seen in most
ingredients.
Soybean oil prices moved higher.
Soybean oil futures prices opened the
week lower but turned higher again at
midweek. The cash basis on soybean
oil was unchanged with the weight of
burdensome supplies offset by seasonal
downtime taken by some refineries. It
was expected with inventories in excess
of 3 billion lbs, the basis would come
under additional pressure once all the
refineries are up and running again.
When soybean oil futures prices
dipped to around 36c a lb, several buyers
extended contract balances 30 to 45 days.
Basis coverage was pretty solid through
September, so anytime the futures price
approached the 36c-a-lb level, buyers
were willing to complete oil transactions.
The U.S. Department of Agriculture
indicated U.S. exporters recently sold
40,000 tonnes of soybean oil to China
for the 2010-11 marketing year. China
remained in a quality-related dispute
with Argentina, which ordinarily would
be China's principal foreign supplier of
soybean oil around this time of year.
Spot supplies of corn oil, peanut oil
and cottonseed oil remained tight with
most movement committed to contracts.
Palm oil prices were unchanged.
The premium to soybean oil asked for
canola oil widened because of acreage and
quality concerns in Canada. 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
July 9
July 2 June 25 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
July 9
Year ago
Midwest beet 53.00 @ 55.00
-
-
35.00
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
-
-
35.00 Midwest
¾
21.925 Midwest
18.925
21.925 net
28.85@32.85
Cane*
53.00 @ 54.00
-
-
35.10 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
Contract
Nearby
July-September
October-December
January-March
April-June
July-September

July 9
31.25
31.25
29.10
29.00
28.90
28.80

- Change from -
July 2 June 25
-2.15 -2.70
-2.15 -2.70
-
+.35
+.15
+.65
-
+.75
-
+.95

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

Year
ago
22.80
22.80
22.85
23.10
23.10
23.10

Chicago soybean oil futures
Bulk in tank cars, cents per lb
July 09
-- Change from -Delivery
close
Jul. 02
Jun. 25
July
37.38
+1.37
+.22
August
37.50
+1.34
+.17
September 37.65
+1.34
+.17
October
37.84
+1.36
+.20
December 38.27
+1.40
+.24
January
38.58
+1.41
+.25

Edible oils
Bulk, cents per lb
Year
ago
32.70
32.84
32.98
33.14
33.47
33.82

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
July
34.63 @34.88
August
34.75 @35.00
September
34.90 @35.15
October
35.09 @35.34
November
35.26 @35.51
December
35.52 @35.77
January
35.83 @36.08
38 / July 13, 2010 Milling & Baking News

Western points
34.13 @34.38
34.25 @34.50
34.40 @34.65
34.59 @34.84
34.76 @35.01
35.02 @35.27
35.33 @35.58

- Change from - Year
July 9 July 02 June 25 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

35.00
35.00

+1.50
-

+.25
-1.00

29.75
29.50

35.50

+.25

29.25

43.50
40.00

+1.50
-

+2.25 34.75
-1.00 34.75

46.00
48.75

+.50
+2.25

-.50 41.00
+1.00 41.75

68.00
42.50

+.50
+1.00

-.50 59.00
+1.25 37.75

55.00
43.00

-2.00
+2.50

-2.00 53.00
+2.25 37.50

bakingbusiness.com / world-grain.com

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

Milling & Baking News - July 13, 2010

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