Milling & Baking News - August 10, 2010 - 44

Ingredient Week 

Sweeteners
Sugar offers were raised again last
week as supply continued to shrink
amid the slow arrival of imports.
U.S. bulk refined sugar offers for
delivery through Sept. 30 were raised
3c, to 58c a lb f.o.b., by at least one cane
refiner with offers raised to 61c by one
beet processor that was withdrawn from
the market. Some suggested prices may
go higher, although others maintained
sugar still was available below the latest
quoted levels. Small lots were said to
have traded around 60c for nearby. A few
buyers continued to seek sugar of any
quantity, and some beet processors still
had supply to sell. Cane processors were
hampered by the slow arrival of imports
due to shipping delays of several weeks
in Brazil. Processors were not permitting
buyers to "pull" supply above or earlier
than contracted levels, which would be
allowed under normal supply situations.
Prices for October-December, the
first quarter of the 2010-11 marketing
year, held at 47c a lb, and for 2011 were
maintained at 43c. Traders suggested
users cover 2010-11 needs to avoid a
repeat of the current situation next
summer. Traders estimated an average
of 75% of potential 2010-11 refined beet
sugar production already has been sold
with amounts for individual processors
ranging from 50% to 80%.
Speakers at the American Sugar
Alliance Symposium in Vail, Colo.,

Beet and cane sugar

last week forecast extremely tight
sugar supply through September and
continued tight supply through 2011.
Some beet processors still planned an
early start to the harvest of the 2010 U.S.
beet crop so new crop sugar may be sold
in September to help ease the 2009-10
short supply situation. Sugar beet crops
continued to progress well with high
condition ratings. Michigan sugar beets
showed "characteristics of a record crop,"
the U.S. Department of Agriculture said.
As requested by both sugar users
and producers, the U.S.D.A. announced
import tariff rate quotas earlier than
usual so exporters may have shipments
available by Oct. 1. The 2010-11 raw
sugar T.R.Q. was set at 1,231,497 tons,
raw value, the minimum World Trade
Organization commitment and the same
as the original 2009-10 level.
T.R.Q. imports do not include amounts
that may enter the United States duty
free under free trade agreements, such
as shipments from Mexico. Although
exports from Mexico have been down
about 70% from a year ago, some traders
suggested shipments may increase before
the end of the marketing year because of
high prices in the United States.
Corn sweetener markets were routine
with exports to Mexico strong. MBN

Bakery Shortening
Bookings of bakery shortening
were light last week with most buyers

standing aside in the hope market
volatility would diminish in coming
weeks. Prices of vegetable oils advanced.
In contrast, meat fats had a weaker tone.
Soybean oil prices advanced strongly.
With the cash market steady, it was
rallying futures prices that pulled
soybean oil prices higher. Soybean oil
rallied with the rest of the soy complex
and other agricultural markets. The
bullish tone in wheat because of the
Russian drought and export ban was
infectious despite 3 billion lbs in soybean
oil stocks overhanging the domestic
market. Advancing crude oil prices were
supportive, and the continued erosion in
the value of the dollar gave soybean oil
a boost and encouraged foreign demand
for U.S. supply despite the high prices.
The U.S. Department of Agriculture
indicated net export sales of U.S.
soybean oil during the week ended July
9 totaled 64,800 tonnes "up noticeably
from the previous week and the prior
four-week average." China purchased
at least 30,000 tonnes of the total with
"unknown destinations," probably
China as well, purchasing 27,000 tonnes.
The premium asked for canola oil
compared with soybean oil narrowed
slightly but remained about 7c a lb above
the soybean oil futures price.
Palm oil prices advanced only partly
in sympathy with soybean oil. Palm oil
exports increased while production was
in a seasonal decline. 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. 6
July 30 July 23 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Aug. 6
Year ago
Midwest beet 58.00 @ 60.00 +3.00 +5.00 35.00
20.375 East
17.375
20.375 net
29.85@33.85
153/8@ 163/8 183/8@ 193/8
Pacific beet
58.00 @ 59.00 +3.00 +5.00 35.00 Midwest
21.925 Midwest
18.925
21.925 net
28.85@32.85
Cane*
58.00 @ 58.50 +3.00 +5.00 35.10 Northeast 16¾@ 17¾ 19¾@ 20¾
22.125 West
19.125
22.125 net
31.85@35.85
*Spot raw plus 7% plus 18.60c with 2% cash discount.
Southeast 167/8@ 177/8 197/8@ 207/8
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
August-September
October-December
January-March
April-June
July-September

- Change from -
Aug. 6 July 30 July 23
35.75
+.05
+.25
35.75
+.05
+.25
32.00
+.05 +2.00
29.80
-.10
+.80
29.00
-.50
-
28.95
+.15
+.25

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

Year
ago
24.00
24.00
24.40
24.65
24.65
24.65

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Aug. 6
- Change from -
Delivery
close
July 30
July 23
August
41.39
+1.56
+2.32
September 41.53
+1.57
+2.39
October
41.71
+1.57
+2.37
December 42.12
+1.57
+2.36
January
42.36
+1.58
+2.16
March
42.54
+1.56
+2.30

Edible oils
Bulk, cents per lb
Year
ago
36.78
36.92
37.10
37.49
37.84
38.08

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
August
38.64 @38.89
September
38.78 @39.03
October
38.96 @39.21
November
39.17 @39.42
December
39.37 @39.62
January
39.86 @40.11
February
39.95 @40.20
46 / August 10, 2010 Milling & Baking News

Western points
38.14 @38.39
38.28 @38.53
38.46 @38.71
38.67 @38.92
38.87 @39.12
39.36 @39.61
39.45 @9.70

- Change from - Year
Aug. 6 July 30 July 23 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

39.00
34.25

+1.75
-.25

+2.50 32.75
-.25 32.50

33.00

-.25

45.00
45.25

+2.00
+2.00

+3.00 39.25
+2.75 38.25

49.00
51.50

+.50
+.75

+.25 44.00
+1.00 47.25

68.50
42.50

+.50
+.50

+1.00 64.00
-
36.50

53.00
48.50

+3.00
+1.50

+2.00 53.00
+2.75 43.00

-1.00

33.00

bakingbusiness.com / world-grain.com

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

Milling & Baking News - August 10, 2010

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