Milling & Baking News - December 14, 2010 - 45

Ingredient Week 

Sweeteners
Activity in sugar markets was quiet
last week, although shipments were
good for the season with prices holding
firm. Corn sweetener contracting progressed, but pricing gave some ground
from list prices. Sugar imports from
Mexico were strong as prices there declined in recent weeks.
U.S. bulk refined beet and cane sugar
prices were firm at 57c a lb f.o.b. through
Dec. 31, 2010, and at 55c from Jan. 1 through
Sept. 30, 2011. Offers for Oct. 1, 2011,
through Dec. 31, 2012, were unchanged at
48c. Some beet processors remained out of
the 2011 market because of the high percentage of sugar already sold. Most were
out of the 2012 market because of uncertainty concerning the bioengineered sugar
beet seed case. An appellate court last week
issued a stay until Dec. 23 on a district
court's Nov. 30 order to destroy sugar beet
root stock, which should allow harvesting
and provide seed for the 2012 crop.
While it wasn't clear how much new
corn sweetener contracting took place
last week, sources estimated 85% to 90%
of potential 2011 production has been
booked, well up from prior estimates.
Traders also indicated the latest bookings were at levels lower than 4@4½c
hikes in 2010 contracted levels sought by
refiners, but were above 2010 prices.
In its Dec. 10 World Agricultural Supply and Demand Estimates, the U.S.
Department of Agriculture projected

Beet and cane sugar

2010-11 U.S. sugar ending stocks at
1,497,000 tons, raw value, up 232,000
tons, or 18%, from November and nearly
even with 1,503,000 tons in 2009-10. The
stocks-to-use ratio on Sept. 30, 2011, was
projected at 13.4%, compared with 11.3%
in November and 13.3% in 2010.
Nearly all of the change was the result
of a 220,000-ton increase in projected imports from Mexico in 2010-11 to 1,245,000
tons. U.S. production was projected at
8,210,000 tons, down 20,000 tons based
on a reduction in Florida cane sugar.
Beginning stocks were increased 2,000
tons. Total imports were put at 2,994,000
tons, up 250,000 tons from November,
and included a 30,000-ton increase in
high-tier tariff imports. Total supply, at
12,707,000 tons, was up 232,000 tons. Use
projections were unchanged.
Mexico's national sugar industry
chamber forecast 2010-11 sugar production at 5.4 million tonnes, up 10% from a
year earlier. In the first six weeks of the
2010-11 season, sugar production was
up 72% from the same period a year ago.
The chamber forecast Mexico's 201011 sugar exports at 800,000 to 900,000
tonnes and HFCS imports at 1.3 million
tonnes, with nearly all sweetener trading
involving the United States. MBN

Bakery Shortening
Bookings of edible fats and oils were
light last week. Most prices were higher.
Soybean oil prices advanced. Soybean

oil futures prices rose even in the face of
declines in the rest of the soy complex.
Recent strength in crude oil futures was
a factor especially in view of the possible
renewal of the blenders' credit by Congress during the lame-duck session. Soybean oil's share in the value of the soybean crush was a historically high 44%
to 46% compared with a more typical
35%. The cash basis on soybean oil bore
up well to the pressure of burdensome
stocks, although ideas were the basis
will weaken in the next several weeks.
Soybean oil users extended ownership to 60 to 90 days when prices dipped
a few weeks earlier.
The U.S. Department of Agriculture on
Dec. 10 forecast the carryover of soybean
oil in the United States on Oct. 1, 2011,
at 2,653 million lbs, unchanged from the
November projection and down 21%
from 3,358 million lbs in 2010. All supply and demand forecasts for 2010-11
were unchanged from November. The
U.S.D.A. raised its forecast for the average soybean oil price at Decatur by 2½c to
a new range of 45@49c a lb. The U.S.D.A.
forecast world soybean oil ending stocks
in 2010-11 at 2.79 million tonnes, up
300,000 tonnes from the November outlook but down 190,000 tonnes from 2.98
million tonnes in 2009-10.
Palm oil prices were boosted by
reduced production because of weather
in Malaysia that encountered strong
Asian and European demand. 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
Dec. 10
Dec. 3 Nov. 26 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Dec. 10
Year ago
Midwest beet 57.00 @ 57.50
-
-
45.00
24.625 East
21.375
24.875 net
29.85@33.85
153/8@ 193/8 183/8@ 193/8
Pacific beet
57.00 @ 57.50
-
-
45.00 Midwest
26.175 Midwest
22.925
26.425 net
28.85@32.85
Cane*
57.00 @ 57.50
-
-
45.00 Northeast 16¾@ 20¾ 19¾@ 20¾
26.375 West
23.125
26.625 net
31.85@35.85
*Spot raw plus 7% plus 16c with 2% cash discount.
Southeast 167/8@ 207/8 197/8@ 207/8
25.875
22.625
26.125 net
Southwest 16½@ 20½ 19½@ 20½
Raw cane
26.575
23.325
26.825 net
West
173/8@ 213/8 203/8@ 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
January-March
April-June
July-September
October-December
January-March

- Change from -
Dec. 10 Dec. 3 Nov. 26
37.30
-1.10
-.40
37.30
-1.10
-.40
37.60
-.15
+.60
37.60
+.75
+.95
34.50
-.25
-.70
32.70
-
+.95

Year
ago
34.00
34.00
32.20
30.30
27.75
25.30

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Dec. 10
- Change from -
Delivery
close
Dec. 3
Nov. 26
December 53.79
+.71
+3.89
January
54.16
+.71
+3.91
March
54.63
+.74
+3.95
May
54.92
+.72
+3.92
July
55.00
+.56
+3.73
August
54.97
+.45
+3.62

Edible oils
Bulk, cents per lb
Year
ago
39.22
39.57
39.99
40.37
40.73
40.88

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
December
50.04 @50.29
January
50.41 @50.66
February
50.65 @50.90
March
50.88 @51.13
April
51.53 @51.78
May
51.67 @51.92
June
51.71 @51.96
42 / December 14, 2010 Milling & Baking News

Western points
49.04 @49.79
49.41 @50.16
49.65 @50.40
49.88 @50.63
50.53 @51.28
50.67 @51.42
50.71 @51.46

- Change from - Year
Dec. 10 Dec. 3 Nov. 26 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

50.25
36.50

+.75
-1.50

+3.75 36.00
-.25 33.50

44.00

52.75
58.00

+.75
+1.00

+3.75 41.75
+5.00 39.50

63.25
73.00

+.75
-

+1.00 45.75
-
42.25

78.00
55.50

+2.50
-

+4.00 52.00
+.50 40.00

58.00
57.00

-5.00
+1.00

-5.00 52.00
+4.25 43.50

-.50

32.75

bakingbusiness.com / world-grain.com

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

Milling & Baking News - December 14, 2010

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