Milling & Baking News - March 8, 2011 - 45

Soy Products
Bookings of soy ﬂour were routine and mostly on a month-to-month basis last week. Prices advanced. Buyers continued to hope for lower prices as the harvest of a forecast record soybean crop in Brazil progresses. Lead times to deliver new orders held at two to three weeks. Soy complex futures posted strong price gains last week with old crop soybean contracts climbing back above $14 a bu. Support came from continued tight old crop soybean supplies, gains in crude oil prices above $100 a barrel and competition for 2011 planted area with corn and cotton currently leading the acreage race. Foreign markets offered mixed signals. Demand for U.S. soybeans eased as South American supplies increased with harvest, but recent lower U.S. prices renewed interest from top buyer China. In South America, the harvest of an expected record crop in Brazil continued but was slowed by rain. In Argentina, a port workers’ strike slowed exports of soybean products. The U.S. Department of Agriculture’s World Agricultural Supply and Demand Estimates will be released March 10. Net export sales of U.S. soybeans in the week ended Feb. 24 for delivery in 2010-11 were 361,700 tonnes, more than 2½ times the previous week’s amount, the U.S.D.A. said. Net sales of 283,600 tonnes were reported for 2011-12. Net weekly sales of soybean meal for 2010-11 totaled 148,100 tonnes, up 37% from a week earlier. Soybean sales for both years combined exceeded trade expectations, while soybean meal sales were at the high end of estimates. Soybean net export sales commitments for the marketing year to date were up 10% from the same period last year, but soybean meal sales were down 24%, the U.S.D.A. said. MBN

Corn Products
Bookings of corn meal products were about steady last week. Prices advanced. Some buyers, especially larger users, who typically book quarterly have already done so. But many users continued buying month to month after failing to extend coverage when prices dipped a couple of weeks ago on hopes of still lower values. Processors indicated demand was more balanced across all grit sizes compared with a few weeks ago, when most orders were for smaller-sized products. Mills ran about 5½ days. Corn futures posted moderate price gains with nearby futures trading to the highest levels since July 2008 early last week. Despite an expected large increase in 2011 corn planted area, tight old crop supplies, with Sept. 1, 2011, carryover forecast at a 15-year low, continued to underpin the market. Crude oil prices topping $100 a barrel and potential increased demand for corn to make ethanol added support. Proﬁt-taking and ideas of slowing exports to top buyers Japan and Mexico trimmed gains late in the week. The U.S. Department of Agriculture will release its updated corn supply and demand projections on March 10, but the real interest will be in the annual March 31 Prospective Plantings report. Net export sales of U.S. corn in the week ended Feb. 24 for delivery in 201011 were 1,080,600 tonnes, down 28% from the previous week’s marketing year high and down 10% from the prior fourweek average, the U.S.D.A. said. Sales of 121,700 tonnes were reported for 2011-12. Total sales were at the high end of trade expectations. Sales commitments for the marketing year to date were up 6% from the same period last year. MBN

Oats
Bookings of food grade oats ﬂakes slowed last week as prices advanced and after active contracting the previous week. Buyers took advantage of sharply lower prices two weeks ago and added coverage for the rest of the crop year (through September) in several cases. Oats millers continued to be concerned about oats supplies in 2011-12 after the low milling quality of the 2010 Canadian crop and as high prices for other crops potentially limit Canadian oats plantings in 2011. The U.S.D.A. at its recent Agricultural Outlook Forum projected 2011 U.S. oats production at a record low 78 million bus, down from 81 million bus in 2010, based on planted area of 3 million acres and harvested area of 1.2 million acres, both also record lows. MBN

Rice
Milled rice prices were unchanged last week except for medium and short grain, which were up $1 a cwt. Rice byproduct prices were steady except for bran, which was higher. U.S.D.A. 2010 crop world milled rice prices declined 12@17c a cwt. Rough rice futures prices ended mixed last week as old crop prices eased but new crop rose. Strong weekly export sales offered support, but ample domestic and global supplies continued to hang over the market with global ending stocks forecast at an eight-year high. Net export sales of U.S. rice in the week ended Feb. 24 for delivery in 2010-11 totaled 85,300 tonnes, more than three times the previous week’s amount and up 57% from the prior four-week average, the U.S.D.A. said. Total export sales commitments of rice for the marketing year to date were 2% ahead of the same period a year earlier. MBN

Chicago corn and soy futures
Corn Futures $ per bu March May July September December March Soybeans March May July August September November Soybean Meal March May July August September October — Change from — Year March 4 Feb. 25 Feb. 18 ago 7.21¼ 7.28 7.32¾ 6.60 6.09½ 6.18¼ $ per bu 14.07¾ 14.14 14.21¼ 14.08 13.82¾ 13.61 $ per ton 363.80 369.70 373.10 370.10 363.30 352.70 +9¼ +6 +6 +14 +7¾ +8 +42¼ +39 +38½ +40 +35¼ +31½ +4.10 +5.00 +6.60 +7.00 +6.70 +4.90 +11½ +7¾ +8¼ +¾ -3 -2¼ +39¾ +33 +32¼ +34 +26¼ +19 +1.80 +3.70 +5.60 +7.50 +6.90 +4.50 3.64¾ 3.75½ 3.86½ 3.95 4.02½ 4.13¼ 9.34¾ 9.42¾ 9.50½ 9.47¾ 9.35 9.25 257.90 257.70 258.60 257.60 255.80 248.90

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt — Change from — March 4 Feb. 25 Feb. 18 Soy ﬂour Bulk 24.74 @ 25.70 +.28@ +.48 +.49 @ +.40 Sacked 26.70 @ 26.74 +.48@ +.28 +.45 @ +.44

Rice
Offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash March 4 Feb. 25 Feb. 18 ago Long grain 27.50@29.00 — — 24.50 Medium grain 35.00@37.50 +1.00 +1.00 29.50 Parboiled 34.00@37.00 — — 27.50 Second heads, bulk 14.50@16.00 — — 18.50 Brewers 10.00@13.00 — — 16.50 f.o.b. mills, $ per ton Rice millfeed 60.00 — — 50.00 Rice bran 145.00@155.00 +25.00 +25.00 110.00 Rice hulls 15.00 — — 12.00 U.S.D.A. 2010 crop world price milled - $ per cwt Long grain 19.62 -0.16 -0.81 17.75 Medium/short grain 19.29 -0.17 -0.80 17.45 Broken 13.88 -0.12 -0.58 12.22 C.B.O.T. rough rice futures - $ per cwt March 13.91 -0.04½ -0.84 12.83 May 14.19 -0.12 -0.88½ 13.09 July 14.49 -0.12 -0.88½ 13.38 September 15.18 +0.27 -0.34 13.11
Milling & Baking News March 8, 2011 / 45

Corn meal
$ per cwt March 4 23.85@ 28.70 25.62@ 30.53 25.52@ 30.43 27.94@ 32.82 — Change from — Feb. 25 Feb. 18 +.80@+.90 +.85@+.94 +.80@+.90 +.85@+.94 +.80@+.90 +.85@+.94 +.80@+.90 +.85@+.94 — Change from — Feb. 25 Feb. 18 +50c +1c — -1.00 -32½c —

Chicago, bulk Chicago, sacked New York, bulk New York, sacked

Oats
Minneapolis March 4 Food grade ﬂakes, f.o.b., bagged, $ per cwt 32@32.25 Milling quality oats, No. 2 heavy, $ per bu 3.90 Oat hulls, $ per ton 25@35

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Milling & Baking News - March 8, 2011

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