Milling & Baking News - December 11, 2012 - 45

Soy Products
Soy flour prices advanced last week, following the upward trajectory of the soy complex. Trading was active, and delivery remained two to three weeks forward. Business was expected to stay robust through the holiday period as demand for an affordable source of protein held strong. U.S. soybean futures, and the soy complex overall, posted strong gains, although the run-up was slowed last Friday by profit-taking and lower corn and wheat futures prices. Soybean futures prices tumbled as much as 20% from late August to mid-November but have advanced consistently since then because of strong exports and export prospects. News of a private sale of 115,000 tonnes of soybeans to China in 2012-13 bolstered the notion that enthusiastic buying of U.S. soybeans will continue and that demand by China was virtually inelastic. Net export sales of U.S. soybeans far exceeded analysts’ expectations and had a bullish effect on futures prices last week. The U.S. Department of Agriculture said net soybean export sales in the week ended Nov. 29 were 1,142,700 tonnes for 2012-13 and 1,000 tonnes for 201314, sharply above the 450,000 tonnes to 750,000 tonnes expected by the trade. The totals were nearly three times the previous week’s sales and were up noticeably from the prior four-week average. For 2012-13 sales, 45% were reported for China at 509,600 tonnes. Other significant buyers were Spain (153,300 tonnes), Germany (98,400 tonnes), Mexico (75,100 tonnes) and Thailand (64,900 tonnes), the U.S.D.A. said. Also impressive were export sales of soybean meal, which exceeded trade

expectations of 150,000 tonnes to 300,000 tonnes by a wide margin as well. The U.S.D.A. said net export sales of soybean cake and meal in the week ended Nov. 29 were 463,600 tonnes for 2012-13 and 1,200 tonnes for 2013-14. MBN

Corn Products
Prices of most corn products were steady to lower in keeping with the direction of corn futures last week. Corn futures traded in a narrow range even after an exceptionally bearish export sales report from the U.S. Department of Agriculture Thursday morning sent prices modestly lower at the week’s end. The disappointing results led corn futures to a two-week low, with old crop prices lower but new crop values up slightly as tight world supplies and slack overseas demand competed for market influence. The bleak export situation pressured prices, but other factors helped limit declines. Early last week, corn traded on gains in other markets such as soybeans, wheat, crude oil and U.S. stock indexes. News of a surprise increase in weekly ethanol output to 835,000 barrels per day, a five-month high and an increase of 4% from the previous week, also lent support to corn futures prices. Keeping a floor under declines was the fact that the 2012 drought cut corn yields to multi-year lows. In addition, excessive rain and delayed planting in corngrowing areas of Argentina fed ideas that the South American corn crop may be insufficient to significantly alleviate the tight worldwide supplies. High prices appeared to be rationing demand from overseas buyers, leading to the dismal level of recent export business.

U.S. corn net export sales in the week ended Nov. 29 were markedly below analysts’ expectations that ranged from 300,000 tonnes to 500,000 tonnes. The U.S.D.A. said 51,600 tonnes were sold for 2012-13 and a net reduction of 4,200 tonnes was recorded for 2013-14. For the marketing year to date, net export sales commitments of U.S. corn were 46% behind the same period a year earlier, the U.S.D.A. said. MBN

Oats
Food-grade oats flakes prices were firmer on good seasonal demand for hot breakfast cereal and gains in oats futures prices last week. The cash basis in Canada has held strong, which has mostly offset earlier losses in U.S. oats futures prices. Canadian 2012 oats production was estimated at 2,683,900 tonnes, down 15% from 3,157,600 tonnes in 2011, Statistics Canada said in its 2012 final Production of Principal Field Crops report released last week. Canada is the source of much of the supply of milling quality oats processed in the United States. MBN

Rice
Prices of U.S. milled rice were unchanged last week, the U.S.D.A. said. Rice byproduct prices were mixed with bran values up $10@15 a ton from a week earlier but hulls and millfeed down $5 a ton from the most recent quotes. World milled rice prices posted by the U.S.D.A. declined 26@40c a cwt last week, while posted rough rice values fell 26@27c a cwt. Net export sales of U.S. rice in the week ended Nov. 29 were 94,500 tonnes for 2012-13, the U.S.D.A. said, up 57% from a week earlier and up 9% from the prior four-week average. MBN

Chicago corn and soy futures
Corn Futures $ per bu December March May July September December Soybeans January March May July August September Soybean Meal December January March May July August — Change from — Year Dec. 7 Nov. 30 Nov. 23 ago 7.32¾ 7.37¼ 7.39¼ 7.35½ 6.57¾ 6.37¾ $ per bu 14.72¼ 14.72 14.53¼ 14.41½ 14.14 13.71 $ per ton 450.50 442.90 437.90 426.30 419.10 409.70 -15¼ -15½ -12¾ -8¾ +1 +2¼ +33½ +39½ +43½ +41 +37¾ +32¾ +8.10 +8.00 +10.40 +12.30 +11.30 +10.40 -12¾ -12½ -7½ -2 +11¾ +12¼ +53½ +69 +70½ +65¼ +61¼ +51½ +21.90 +19.50 +23.60 +23.10 +20.80 +18.90 5.85½ 5.94¼ 6.03 6.09 5.75 5.51¾ 11.07 11.16½ 11.27 11.37 11.37½ 11.35 275.50 276.90 281.20 285.30 289.40 290.90

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt — Change from — Dec. 7 Nov. 30 Nov. 23 Soy ﬂour Bulk 33.87 @ 35.11 +.40@ +.41 -.16 @+1.06 Sacked 35.87 @ 36.11 +.40@ +.41 +.84 @ +.06

Rice
Offers f.o.b. mills, $ per cwt, bagged

— Change from — Year Cash Dec. 7 Nov. 30 Nov. 23 ago Long grain 26.75@28 — — 27 Medium grain 27.50@28.50 — — 31 Parboiled 29.25@33 — — 30 Second Corn meal heads, bulk 19.50@20 — — 17 $ per cwt 17@17.50 — — 14 — Change from — Brewers f.o.b. mills, $ per ton Dec. 7 Nov. 30 Nov. 23 85 … … … Chicago, bulk 25.96@ 30.72 -.30@-.32 -.24@-.28 Rice millfeed 200@210 +15 +15 220 Chicago, sacked 27.73@ 32.81 -.30@-.32 -.24@-.28 Rice bran 35 … -5 50 New York, bulk 27.63@ 32.71 -.30@-.32 -.24@-.28 Rice hulls New York, sacked 30.05@ 35.12 -.30@-.32 -.24@-.28 U.S.D.A. 2012 crop world price milled - $ per cwt Long grain 19.35 -0.40 -0.40 22.09 Oats Medium/short — Change from — grain 19.07 -0.40 -0.40 21.79 Minneapolis Dec. 7 Nov. 30 Nov. 23 Broken 13.69 -0.29 -0.29 15.63 Food grade ﬂakes, f.o.b., C.B.O.T. rough rice futures - $ per cwt bagged, $ per cwt 31.50@31.75 +.25 +.25 January 15.26½ -0.00½ +0.23 14.01 Milling quality oats, No. 2 heavy, March 15.58 -0.00½ +0.22½ 14.28 $ per bu 4.11¼ +12½c +17¼c May 15.91 +0.04 +0.27 14.58 Oat hulls, $ per ton 25@35 — — July 16.06½ +0.03½ +0.27½ 14.85
Milling & Baking News December 11, 2012 / 45

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Milling & Baking News - December 11, 2012

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