Miling & Baking News - July 26, 2011 - 46

Ingredient Week 

Sweeteners
Cash sweetener trading remained in its summer lull last week, although nearby offers were raised as New York domestic raw sugar prices surged to four-month highs. The spread between world and domestic raws widened to about 10c a lb nearby and more in deferred periods. Offers on domestic bulk sugar were raised to 59c a lb f.o.b. by at least one major refiner late last week. The higher price covered spot through Sept. 30, 2011. Offer prices for beet and cane sugar for 2011-12 (Oct. 1, 2011, to Sept. 30, 2012) were unchanged at 57c a lb f.o.b. Some sources said small amounts traded in the low 50c-a-lb area for nearby shipment. Sugar was offered around 45c a lb f.o.b. for 2013 with no new activity evident. Last Tuesday, nearby September domestic raw sugar futures advanced more than 2c a lb on what was said to be refiner buying. On Thursday, prices jumped another 2c a lb, with nearby contracts at or near 40.50c, before the two nearby contracts surged to four-month highs of 41c on Friday. Support came mostly from new estimates of lower sugar production in top-producing Brazil. U.S. sugar beet crop condition ratings declined during the week ended July 17 in most states providing numbers. Sugar beets were rated 60% good to excellent in Minnesota, 70% in North Dakota, 62% in Wyoming and 72% in Colorado. Concern persisted about potential fall

frost damage and consequently reduced sugar production due to the late planting in the Red River Valley and in Michigan. In its July 18 Sugar and Sweeteners Outlook, the U.S. Department of Agriculture listed seven scenarios of beet sugar production in the Red River Valley and Michigan based on possible effects of reduced yields but higher acreage. The department left its total U.S. beet sugar projection unchanged from 201011 and from June at 4.8 million tons, “at least until next month.” The first sugar beet yield forecast will be issued Aug. 11. The U.S.D.A. also left its July forecast of 2011-12 cane sugar output unchanged from June at 3.39 million tons, up 8% from 2010-11 despite persistent dryness in Louisiana and Florida. Louisiana’s cane crop as of July 17 was rated 37% good to excellent and 29% poor to very poor. Shipments of sugar from Mexico to the United States had been expected to drop in the last four months of the marketing year, but the fall was dramatic, prompting the U.S.D.A. to reduce its 2010-11 U.S. import forecast for the year. June shipments preliminarily were estimated near 22,000 short tons, raw value, down 90% from May. MBN

Bakery Shortening
Bookings of bakery shortening were limited last week. Price changes were irregular. Soybean oil prices declined. Soybean

oil futures prices dropped. The cash basis on soybean oil remained firm as recent expansion in demand from the biodiesel sector provided some underpinning. The stubbornly strong cash basis affected buyers who traditionally pull from the spot market. Large users of soybean oil booked basis at least through September several weeks ago, when basis levels were much lower. Soybean oil users mostly were on the sidelines having put on around 60 days’ coverage a couple of weeks ago. Palm oil prices moved higher. While production was increasing seasonally, demand was expanding as well with European buyers largely responsible for the latter. U.S. demand for palm oil remained limited. The premium to soybean oil asked for canola oil narrowed by about a half-cent per lb. Sunflowerseed oil and peanut oil were the highest-priced ingredients. North Dakota sunflowers were 2% blooming as of July 17, according to the U.S. Department of Agriculture field office in that state. The crop’s condition was rated 76% good to excellent, 21% fair and 3% poor. Supplies of peanut oil from the 2010 crop were increasingly tight. Lard and edible tallow prices advanced and their premium to soybean oil widened, which increasingly encouraged biodiesel manufacturers to look to soybean oil. Shipments of oils slowed a bit from the previous week. 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 22 July 15 July 8 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet July 22 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* 57.00 @ 59.00 +2.00 +2.00 53.00 Northeast 16¾@ 20¾ 16¾@ 17¾ 26.375 West 23.125 26.625 net 31.85@35.85 *Spot raw plus 7% plus 13c 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 August-September October-December January-March April-June July-September — Change from — July 22 July 15 July 8 40.10 +3.55 +2.80 40.10 +3.55 +2.80 40.10 +2.60 +3.40 39.50 +1.70 +3.00 39.40 +2.40 +2.90 39.10 +1.60 +2.20 Year ago 35.50 35.50 30.00 29.00 29.00 28.70

Chicago soybean oil futures
Bulk in tank cars, cents per lb July 22 — Change from — Delivery close July 15 July 8 August 56.51 -.84 +.19 September 56.78 -.78 +.23 October 57.01 -.77 +.19 December 57.48 -.78 +.17 January 57.73 -.80 +.14 March 58.01 -.77 +.12 Year ago 39.07 39.14 39.34 39.76 40.20 40.24

Edible oils
Bulk, cents per lb — Change from — Year July 22 July 15 July 8 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 55.50 63.50 63.75 55.50 57.00 68.25 85.00 89.25 70.00 95.00 61.00 -1.00 +3.75 +3.00 -.75 +2.50 +4.75 — -.75 — — -1.50 +.50 36.50 +6.75 34.50 +3.75 34.00 +1.25 42.00 +3.00 42.50 +4.00 48.75 -5.00 50.50 +2.25 67.50 -3.50 42.50 — +.75 51.00 45.75

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 55.01 @55.51 August 55.01 @55.51 September 55.28 @55.78 October 54.76 @55.01 November 55.00 @55.25 December 55.23 @55.48 January 55.48 @55.73 Western points 54.51 @54.76 54.51 @54.76 54.78 @55.03 54.01 @54.51 54.25 @54.75 54.48 @54.98 54.73 @55.23

46 / July 26, 2011 Milling & Baking News

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Miling & Baking News - July 26, 2011

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