Milling & Baking News - July 12, 2011 - 38

Ingredient Week 

Sweeteners
Sweetener markets were quiet after the holiday weekend, although inquiry picked up in some sectors. New York world raw sugar futures prices surged on global supply concerns with domestic raw futures also posting strong gains. Offers in the U.S. on domestic bulk refined beet and cane sugar held at 57c a lb f.o.b. for spot through Sept. 30, 2012, from major processors who were hesitant to book additional supply or already were sold out for 2010-11 and even for the 2011-12 marketing year. But traders indicated limited supplies of lower-price bulk sugar may be found from certain beet and cane processors. Cane sugar for July 2011 delivery only was said to be offered at around 50c a lb in the South due to an order imbalance at one company. Some sugar also was said to be available at that level for 2012, although little if any trading was evident. Mexican sugar continued to be available at similar values even as shipments slowed seasonally. Mexican sugar exports to the United States may exceed the forecast 1.3 million tonnes due to better accounting and shipping methods, Mexico’s national sugar industry chamber said last week. Mexico concluded its 2010-11 cane processing season producing 5.18 million tonnes of sugar, down 3.5% from the initial forecast but up 7.2% from 2009-10, according to the country’s sugar cane producers’ union. Output consisted

of 3.43 million tonnes of standard sugar and 1.7 million tonnes of refined with the rest brown sugar. Production in 201112 was forecast to fall below 5 million tonnes due to dry conditions. Most U.S. beet processors were heavily sold for 2011-12 (2011 sugar beet crop) and were reluctant to make further sales until they estimate sugar production from the late-planted crop. Sugar beet crop condition ratings as of July 3 were mixed compared with a week earlier. Crops were rated 60% good to excellent in Minnesota, 67% in North Dakota, 58% in Wyoming and 66% in Colorado. Louisiana’s cane crop showed mixed results with 35% rated good to excellent, 33% fair and 32% poor to very poor. New York nearby October world raw sugar futures (No. 11) surged to a new contract high of 29.70c a lb last Thursday, up about 8% since the previous Friday, on port congestion and lower production forecasts for Brazil, in addition to short covering. A year earlier, nearby prices traded at 16@17c a lb during July and August. Domestic raw futures posted strong advances with highs above 37c a lb in all contracts through September 2012. Futures pulled back on Friday. MBN

Bakery Shortening
Bookings of bakery shortening were limited last week. Price changes were mixed. Soybean oil prices advanced. Soybean oil futures prices moved up with the rest

of the soy complex. Soybean oil futures prices also derived support from rising crude oil prices. Soybean oil was becoming more attractive to biodiesel manufacturers given the high prices in the tallow market. The cash basis on soybean oil remained firm with refiners pointing to prospective increased demand from the biodiesel sector. The recent weakness in the soybean oil market encouraged buyers to extend contract balances to about 60 days, which reflected more extensive ownership than had been the case for the past several months. Some major bakers were said to be covered through September with a few having ownership into the fourth quarter. Palm oil prices continued to slump as seasonally increasing production, especially in Malaysia and Indonesia, resulted in mounting inventories amid only steady demand. The U.S. Department of Agriculture indicated 93% of prospective sunflower acres in the four key states – Colorado, Kansas, North Dakota and South Dakota — were planted by July 3 compared with 98% as the recent five-year average for the date. The North Dakota crop was 91% planted compared with 100% as that state’s average progress for the date. Sunflowerseed oil prices dropped but remained mostly nominal in view of tight supplies. Most sunflowerseed oil moved against contracts concluded earlier. The premium to soybean oil futures prices asked for canola oil was 4c a lb. MBN

Beet and cane sugar
f.o.b. plant, cents per lb

Sweeteners
Delivered basis, cents per lb 42% HFCS spot price1

HFCS list price2 Regular — Change from — Year corn July 8 July 1 June 24 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet July 8 Year ago Midwest beet 55.00 @ 57.00 — — 53.00 24.625 East 21.375 24.875 net 29.85@33.85 153/8@ 193/8 153/8@ 163/8 Paciﬁc beet 55.00 @ 57.00 — — 53.00 Midwest 26.175 Midwest 22.925 26.425 net 28.85@32.85 Cane* 55.00 @ 57.00 — — 53.00 Northeast 16¾@ 20¾ 16¾@ 17¾ 26.375 West 23.125 26.625 net 31.85@35.85 *Spot raw plus 7% plus 14c with 2% cash discount. Southeast 167/8@ 207/8 167/8@ 177/8 25.875 22.625 26.125 net Southwest 16½@ 20½ 16½@ 17½ Raw cane 26.575 23.325 26.825 net West 173/8@ 213/8 173/8@ 183/8 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 8 37.30 37.30 36.70 36.50 36.50 36.90 — Change from — July 1 June 24 +1.90 +1.90 +1.90 +1.90 +1.65 +1.65 +.10 +.35 -.40 +.55 +.05 +1.00 Year ago 31.25 31.25 29.10 29.00 28.90 28.80

Chicago soybean oil futures
Bulk in tank cars, cents per lb July 8 — Change from — Delivery close July 1 June 24 July 56.20 +1.04 +.98 August 56.32 +1.00 +.96 September 56.55 +1.00 +.94 October 56.82 +1.00 +.96 December 57.31 +1.01 +.95 January 57.59 +1.02 +.97 Year ago 37.38 37.50 37.65 37.84 38.27 38.58

Edible oils
Bulk, cents per lb July 8 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 55.00 56.75 60.00 54.25 54.00 64.25 90.00 87.00 73.50 95.00 60.25 — Change from — Year July 1 June 24 ago +1.00 -.75 +1.00 +1.00 -.75 — — +7.00 +4.00 -10.00 +1.00 +1.00 35.00 -1.00 35.00 +2.25 35.50 +1.00 43.50 -1.75 40.00 -3.25 — 46.00 48.75

Spot soybean oil
Decatur, Ill., bulk, cents per lb
63.00 53.00 43.00 33.00 23.00 J O J Previous Year A Current Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. July 54.70 @54.95 August 54.82 @55.07 September 55.05 @55.30 October 55.32 @55.57 November 55.57 @55.82 December 55.81 @56.06 January 56.09 @56.34 Western points 54.20 @54.45 54.32 @54.57 54.55 @54.80 54.82 @55.07 55.07 @55.32 55.31 @55.56 55.59 @55.84

+8.50 68.00 +3.50 42.50 -8.00 55.00 +1.50 43.00

38 / July 12, 2011 Milling & Baking News

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Milling & Baking News - July 12, 2011

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