Milling & Baking News - December 28, 2010 - 38

Ingredient Week 

Sweeteners
While cash sweetener markets were
quiet before the holiday, New York world
sugar futures soared on concerns about
global supply in the first quarter of 2011.
The nearby March New York No. 11
world raw sugar futures contract traded
to new 30-year highs last week, hitting
34.06c a lb on Thursday before slipping
below 34c on profit taking and long liquidation on Wednesday. Despite more
normal sugar production in India, supply issues in Australia and Brazil, coupled with strong demand, were expected
to result in a third consecutive year of
global sugar supply deficit.
No. 16 domestic raw futures, which
recently were pressured by increased
shipments of semi-processed sugar from
Mexico, climbed to five-week highs above
or near 39c a lb through September 2011,
with the July 2011 contract nearing 40c.
Domestic raws got a further boost from
a recent Florida freeze that "severely
damaged" the 2010 sugar cane crop, the
U.S. Department of Agriculture said in
its weekly Weather Crop report. "Newlyplanted cane for next season was burnt
back to the ground from the hard freeze.
The top of the older sugar cane crop was
completely frozen and growers planned
to harvest the crop before it becomes unusable." But one trader noted the large
area hit by the freeze made it difficult to
harvest the damaged cane soon enough
and there likely would be some loss.

Beet and cane sugar

Mexico continued to fill gaps in U.S.
supply as production there was running
43% ahead of a year ago through the first
eight weeks of the 2010-11 season.
Physical sugar trading in the U.S. was
in its year-end lull with few if any sales
evident. U.S. bulk refined beet and cane
sugar offers were firm at 57c a lb f.o.b.
through the end of 2010, at 55c for Jan. 1
through Sept. 30, 2011, and at 48c for Oct.
1, 2011, through Dec. 31, 2012.
U.S. beet processors were largely out
of the 2010-11 market because many already sold a high percentage of their
expected production. Most also were
out of the 2011-12 market because of uncertainty about planting bioengineered
sugar beet seed in 2011. The stay from an
appellate court on a district court's Nov.
30 order to destroy bioengineered seed
stock set to expire Dec. 23 was extended
by the appellate court to Feb. 28.
Contracting of 2011 corn sweeteners
was thought to be nearly complete. Indications were later bookings were under
the 4@4½c-a-lb increases to 2010 contracted prices sought by refiners and closer to
initial offers around 3@3½c above yearago levels, with the exception of dextrose,
which was in tight supply and held at the
higher offered levels. MBN

Bakery Shortening
Bookings of edible fats and oils were
limited last week. Price changes were
mostly solidly higher.

Soybean oil prices advanced. Soybean
oil futures prices moved higher with the
rest of the soy complex. Dry conditions
in key Argentine growing areas,
where planting was nearly completed,
threatened to reduce yield prospects in
that country. Strong export demand also
underpinned the soy complex.
The share of soybean oil in the
soybean crush was around 44%, well
above the typical share of around 35%.
Some analysts suggested oil's share
of the soybean crush may continue to
advance and even approach 50% in the
first quarter of 2011.
The cash basis on soybean oil
strengthened despite burdensome stocks.
Providing a boost to the cash basis was
the reinstitution of the $1-per-gallon
blenders' credit for biodiesel as mandated
by the tax act. Soybean oil use for biodiesel
may go up in states with mandates, but
nationwide use of soybean oil for biodiesel
manufacturing would not be economical
unless prices fell back to around 46@47c a
lb, according to one merchandiser.
Palm oil prices softened, but only
slightly, as production problems caused
by excessive rain in Malaysia continued
in the face of heavy world demand.
Canola processing margins weakened,
which gave the cash basis on the oil
compared with soybean oil futures a
boost. A consideration in the stronger
canola oil market was indications China
may import Canadian canola seed. 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. 23
Dec. 17 Dec. 10 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Dec. 23
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 14.2c 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. 23 Dec. 17 Dec. 10
38.95
+1.20 +1.65
38.95
+1.20 +1.65
39.55
+1.85 +1.95
39.20
+1.00 +1.60
34.80
+.05
+.30
34.35
+.35 +1.65

Year
ago
34.50
34.50
32.70
30.20
27.90
26.80

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Dec. 23
- Change from -
Delivery
close
Dec. 17
Dec. 10
January
56.59
+2.46
+2.43
March
57.23
+2.60
+2.60
May
57.57
+2.56
+2.65
July
57.64
+2.43
+2.64
August
57.58
+2.37
+2.61
September 57.48
+2.32
+2.56

Edible oils
Bulk, cents per lb
Year
ago
38.46
38.86
39.24
39.61
39.77
39.91

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
December
53.34 @53.59
January
53.34 @53.59
February
53.66 @53.91
March
53.98 @54.23
April
54.40 @54.65
May
54.57 @54.82
June
54.61 @54.86
38 / December 28, 2010 Milling & Baking News

Western points
52.34 @52.84
52.34 @52.84
52.66 @53.16
52.98 @53.48
53.40 @53.90
53.57 @54.07
53.61 @54.11

- Change from - Year
Dec. 23 Dec. 17 Dec. 10 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

53.50
38.50

+2.75
+2.00

+3.25 35.00
+2.00 32.00

44.00

55.50
58.75

+2.25
-.25

+2.75 40.50
+.75 39.50

63.75
82.50

+.50
+2.50

+.50 45.50
+9.50 42.25

74.00
57.25

-9.00
-2.75

-4.00 52.00
+1.75 40.00

67.00
59.75

+9.00
+2.25

+9.00 52.00
+2.75 42.00

31.50

bakingbusiness.com / world-grain.com

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

Milling & Baking News - December 28, 2010

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