Milling & Baking News - June 12, 2012 - 46

Ingredient Week 

Sweeteners
Sugar prices last week weakened for this and next year in slow trading amid easing concerns about supplies. Corn sweetener markets were quiet. Most offers on bulk reﬁned beet and cane sugar continued to hold at or near 48c a lb f.o.b. for the balance of this marketing year and for 2012-13, although there were few indications of material selling at that level. For the 2011-12 marketing year, beet sugar was selling below 47c a lb with traders indicating some trading in the “mid-40s.” Current year sales were slow with processors well sold and buyers mostly covered, although some material remained available. The weakness was more evident in beet sugar than in cane. Mechanical problems at a Louisiana reﬁnery delayed shipments and left users seeking material elsewhere. Prices for next year appeared to range from 40c to 45c a lb f.o.b. with most activity around 42c, according to traders. There was little urgency for buyers to add coverage for 2012-13 amid ideas of at least adequate supply for next year. Some processors already were well sold for next year, while others still had much of their prospective output left to sell. There still were no indications of new sugar sales for 2014. The U.S. sugar beet crop was developing early and in mostly good to excellent shape in most areas, although “pockets” of dryness were being watched.

Beet crops rated good to excellent as of June 3 were 70% in Minnesota (68% a week earlier), 69% in North Dakota (69%), 70% in Colorado (72%) and 60% in Wyoming (59%) with the Michigan crop “in excellent shape,” U.S.D.A. ﬁeld ofﬁces in those states said. Sugar beets emerged as of June 3 were at 94% or more except for Wyoming, which was at 83% but still ahead of 64% as the average for the date. Nearby New York world raw sugar futures ﬁrmed and brieﬂy climbed above 20c a lb on the rain-delayed harvest in Brazil and weakness in the value of the U.S. dollar. New York domestic raw sugar futures posted modest gains. Attention this week will be on the June 12 U.S.D.A. World Agricultural Supply and Demand Estimates and any adjustments to 2011-12 and 2012-13 production, import and use numbers. After raising the tariffrate quota in April, the U.S.D.A. said it would reevaluate the supply-and-demand situation after the June WASDE and make further revisions if necessary. Most in the trade did not expect another increase in the T.R.Q. since the latest stocks-to-use ratio was within the U.S.D.A.’s target range. MBN

Bakery Shortening
Bookings of bakery shortening expanded last week. Prices changes were mixed, but ingredients whose prices track those of soybean oil most closely advanced. Soybean oil prices advanced. Soybean oil futures prices were soft at the

week’s outset but surged at midweek along with the rest of the soy complex. The cash basis on soybean oil was steady to a shade weaker. The share of soybean oil in the value of the soybean crush remained weak at around 37%. Many soybean oil users extended coverage by at least 60 days. Suppliers and market analysts addressing the Sosland Publishing Purchasing Seminar, which was held June 3-5, cautioned the soybean oil market was susceptible to wide swings and possibly a run-up in pricing. The value of extending coverage on dips in soybean oil futures prices was emphasized. Some users extended coverage of at least a portion of their forward needs through the third quarter and even into the fourth. Movements in soybean oil futures prices were prodded by a faltering in the recent rise in the value of the U.S. dollar and stabilizing in crude oil futures prices after an extended decline. The U.S. Department of Agriculture indicated net export sales of U.S. soybean oil during the week ended May 31 totaled 13,100 tonnes. Palm oil prices continued to decline mostly because of weaker demand from the European biodiesel sector. The relatively soft market encouraged U.S. palm oil buyers to extend coverage into the third and fourth quarters in anticipation of the fall baking season. The premium to soybean oil futures asked for refined canola oil was unchanged. 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 June 8 June 1 May 25 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet June 8 Year ago Midwest beet 46.00 @ 48.00 -1.00 -1.75 55.00 26.625 East 23.375 27.875 net 33.85@37.85 173/8@ 213/8 153/8@ 193/8 Paciﬁc beet 46.00 @ 48.00 -1.00 -1.75 55.00 Midwest 28.175 Midwest 24.925 29.425 net 32.85@36.85 Cane* 46.00 @ 48.00 -1.00 -1.75 55.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 28.375 West 25.125 29.625 net 35.85@39.85 *Spot raw plus 7% plus 13.1c with 2% cash discount. Southeast 187/8@ 227/8 167/8@ 207/8 27.875 24.625 29.125 net Southwest 18½@ 22½ 16½@ 20½ Raw cane 28.575 25.325 26.825 net West 193/8@ 233/8 173/8@ 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 Nearby July-September October-December January-March April-June July-September — Change from — June 8 June 1 May 25 28.75 +.25 -1.00 29.35 +.35 -.55 30.00 +.10 -.30 29.45 -.05 -.90 29.50 -.90 -1.15 30.40 -.15 ... Year ago 35.50 35.50 35.55 34.30 33.75 33.25

Chicago soybean oil futures
Bulk in tank cars, cents per lb June 8 — Change from — Delivery close June 1 May 25 July 49.46 +.87 -.66 August 49.67 +.86 -.67 September 49.89 +.85 -.67 October 50.10 +.86 -.65 December 50.49 +.80 -.66 January 50.75 +.80 -.63 Year ago 56.85 57.13 57.41 57.70 58.24 58.50

Edible oils
Bulk, cents per lb — Change from — Year June 8 June 1 May 25 ago Soybean oil, Decatur 48.25 Loose lard, Chicago 54.75 Edible tallow, Chicago 51.50 Cottonseed oil, Miss. PBSY 49.75 Palm oil, ports 48.75 Palm kernel oil, ports 50.25 Coconut oil 53.00 Peanut oil, Southeast 112.00 Corn oil, Decatur 57.00 Sunﬂowerseed oil, Midwest 82.00 Canola oil, Midwest 53.25 +.75 +1.75 -1.25 +.75 -1.00 -.25 — — -1.50 — +1.00 -.75 -.25 -2.25 -.75 -1.50 56.00 56.00 55.25 55.75 58.00

Spot soybean oil
Decatur, Ill., bulk, cents per lb
61.00 55.00 49.00 43.00 37.00 31.00 J S D
Previous Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. June 47.96 @48.21 July 47.96 @48.21 August 48.17 @48.42 September 48.39 @48.64 October 48.60 @48.85 November 48.80 @49.05 December 48.99 @49.24 Western points 47.21 @47.71 47.21 @47.71 47.42 @47.92 47.64 @48.14 47.85 @48.35 48.05 @48.55 48.24 @48.74

-1.00 68.75 -2.00 101.00 — -1.50 77.00 73.00

M
Current Year

+1.00 103.00 -.75 59.00

46 / June 12, 2012 Milling & Baking News

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Milling & Baking News - June 12, 2012

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