Milling & Baking News - October 18, 2011 - 42

Ingredient Week 

Sweeteners
Sugar trading was slow last week. The first 2012 corn sweetener list prices were issued. The U.S. Department of Agriculture lowered its estimated 2010-11 and projected 2011-12 U.S. sugar ending stocks, indicating the tight nearby sugar supply may carry into 2012. A major corn refiner late last week listed pricing for next year on a regional basis and with the caveat it may change without notice. Traders indicated highfructose corn syrup 42% prices averaged $21.08 a cwt, up about 7% from last year, and HFCS 55% averaged $25.42 a cwt, up about 16%. Both were below earlier indications of a possible 30% hike, but corn prices have dropped since then. Higher-than-expected corn supply was indicated by the U.S.D.A. last week, adding to buyers’ determination to reelin potential sweetener price increases. In its World Agricultural Supply and Demand Estimates, the U.S.D.A. reduced U.S. sugar ending stocks from September forecasts by 327,000 tons, raw value, for 2010-11, which ended Sept. 30, and by 238,000 tons for 2011-12. The past year’s stocks-to-use ratio dropped to 12.2% from 15.2% in September, and the 201112 ratio fell to 7.7% from 9.8%. For 201011, production was reduced 122,000 tons and imports 105,000 tons (mostly shifted to 2011-12) while use was increased 100,000 tons. For 2011-12, higher use and lower beginning stocks were

partially offset by increased imports. Domestic bulk refined sugar for spot through Dec. 31, 2011, was offered at 62c a lb f.o.b. and at 59@62c a lb f.o.b. for Jan. 1, 2012, through Sept. 30, 2012, unchanged from a week earlier. There have been few recent sales at the “list” prices. Inquiries for 2012 were nil, as were offers of new crop Mexican supply. Traders indicated nearby sugar could be bought around 55c a lb, either from Canada or from certain U.S. distributors who bought earlier at lower levels. While some users sought immediate delivery, the trade indicated buyers in general were not running out of sugar, most having anticipated supplies would be tight to lacking at this time of year. The sugar beet harvest fell further behind the average pace as growers waited for cooler weather before pulling beets. The delay was beneficial in that it gave the lateplanted crop more time to deposit sugar, but negative in that it further delayed the marketing of new crop sugar. The American Crystal Sugar Co. union lockout continued. MBN

Bakery Shortening
Bookings of bakery shortening were limited last week as prices of several ingredients, including soybean oil, advanced. Soybean oil prices rallied to end a three-week slide in values. Soybean oil futures prices posted wide gains in sympathy with the rest of the soy complex,

which advanced in response to lower– than-expected soybean crop and carryover estimates from the U.S. Department of Agriculture and strong export demand. The cash basis on soybean oil remained firm and was underpinned by demand from biodiesel manufacturers. The U.S.D.A. on Oct. 12 forecast U.S. soybean crush in 2011-12 at 1,635 million bus, unchanged from the September projection and down 13 million bus from 2010-11. The U.S.D.A. projected the carryover of soybean oil in the United States on Oct. 1, 2012, at 2,171 million lbs, up 25 million lbs from September but down 23% from 2,816 million lbs in 2011. Food, feed and industrial use of soybean oil in the current year was projected at 14,100 million lbs, down 50 million lbs from September and at the same level as 2010-11 usage. Use of soybean oil in the production of biodiesel was forecast at 3,600 million lbs, unchanged from September and up 44% from 2,500 million lbs in 2010-11. The forecast for biodiesel production assumed the continuation of the $1-per-gallon blenders’ credit after its expiration at the end of 2011, which the trade viewed as anything but certain. Coconut oil prices continued to weaken as production recovered in key producing countries. Palm oil advanced with the soy complex but remained pressured by expanding production. Canola oil followed soybean oil higher. 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 Oct. 14 Oct. 7 Sept. 30 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Oct. 14 Year ago Midwest beet 59.00 @ 62.00 — — 54.00 24.625 East 21.375 24.875 net 29.85@33.85 153/8@ 193/8 153/8@ 193/8 Paciﬁc beet 59.00 @ 62.00 — — 54.00 Midwest 26.175 Midwest 22.925 26.425 net 28.85@32.85 Cane* 59.00 @ 62.00 — — 54.00 Northeast 16¾@ 20¾ 16¾@ 20¾ 26.375 West 23.125 26.625 net 31.85@35.85 *Spot raw plus 7% plus 13.5c with 2% cash discount. Southeast 167/8@ 207/8 167/8@ 207/8 25.875 22.625 26.125 net Southwest 16½@ 20½ 16½@ 20½ Raw cane 26.575 23.325 26.825 net West 173/8@ 213/8 173/8@ 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 Oct. 14 Nearby 38.15 November-December38.15 January-March 38.40 April-June 39.55 July-September 38.10 October-December 36.25 — Change from — Oct. 7 Sept. 30 +5.15 +1.10 +5.15 +1.10 +1.30 +.85 +.30 +.55 -.15 +1.10 — -.75 Year ago 37.60 37.60 37.25 35.95 33.30 30.85

Chicago soybean oil futures
Bulk in tank cars, cents per lb Oct. 14 — Change from — Delivery close Oct. 7 Sept. 30 October 53.20 +4.13 +3.25 December 53.54 +4.22 +3.33 January 53.81 +4.20 +3.33 March 54.15 +4.20 +3.44 May 54.39 +4.22 +3.62 July 54.56 +4.17 +3.66 Year ago ... 47.77 48.12 48.48 48.67 48.83

Edible oils
Bulk, cents per lb Oct. 14 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 54.25 64.00 57.25 53.25 48.25 55.25 56.00 97.50 56.50 93.00 59.25 — Change from — Year Oct. 7 Sept. 30 ago +4.25 -1.25 -3.00 +3.25 +.50 -.25 -6.00 -1.50 -1.75 — +4.25 +2.75 44.75 +1.75 50.00 -3.50 41.00

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

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. October 53.95 @54.20 November 54.12 @54.37 December 54.29 @54.54 January 54.30 @54.55 February 54.47 @54.72 March 54.65 @54.90 April 54.77 @55.02 Western points 53.20 @53.95 53.37 @54.12 53.54 @54.29 53.55 @54.05 53.72 @54.22 53.90 @54.40 54.02 @54.52

+2.00 48.00 -1.75 50.50 -3.50 56.00 -16.00 64.75 +1.50 71.00 -3.00 49.00 -1.00 56.50 +5.75 53.00

42 / October 18, 2011 Milling & Baking News

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Milling & Baking News - October 18, 2011

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