Milling & Baking News - January 8, 2013 - 38

Ingredient Week 

Sweeteners
Sugar and corn sweetener markets remained quiet with some traders not expected to return to their offices until the first full week of the new year. Midwest beet sugar held at around 31@32c a lb f.o.b., unchanged from a week earlier and down 21c, or 40%, from a year ago. Trading was slow to nil, although 31c appeared to be “low enough” to generate buying interest for those who needed fillin supply. Opportunities to sell excess beet sugar supplies were limited as most buyers already were well covered. West coast cane and beet sugar prices along with Northeast and Southern cane sugar prices also were unchanged. There were indications of bagged cane sugar offered around 35c a lb in the South, which equated to bulk beet prices of 31@32c a lb, according to one broker. Cane sugar also was said to be offered at 35½c a lb to distributors, but the list price from one refiner held at 38c a lb. Sugar cane harvesting continued in Mexico. The national sugar cane development committee estimated Mexico’s season-to-date sugar production through Dec. 31 was 922,000 tonnes, up 15% from the same period a year earlier, when the harvest got off to a slow start. Average refinado and estandar prices there were at multi-year lows, as were refined sugar prices in the United States. Corn sweetener markets were quieted by the holidays for a second week. Any

unfinished business, which was estimated to be a small amount, was expected to be picked up again during the first full week of January. Most contracting for 2013 was completed before the holidays at 2@3c a lb above 2012 levels, but in a range of 1½@4c a lb above. The exception was dextrose, which initially was offered flat by some brokers and was said to have traded below the top end of year-earlier prices, which were seen as too high for 2013, especially in cases where dextrose values were above sugar prices. Continued weakness in corn futures prices as well as in the sugar market has benefited corn sweetener buyers who have held out, similar to a year ago, when later contracting also rewarded buyers. Three major outside distractions were at least temporarily averted: A potential longshormen’s strike was avoided by a 30-day extension of the existing contract on Dec. 28; a nine-month extension to the farm bill that expired in October was approved by Congress, keeping the existing sugar program intact, and the “fiscal cliff” was avoided by late-year compromises in Washington on tax issues. The U.S. Department of Agriculture will release its World Agricultural Supply and Demand Estimates with potential revisions to sugar data on Jan. 11. MBN

Bakery Shortening
Bookings of bakery shortening were light during New Year’s week. A firmer

tone was evident in most prices. Soybean oil prices advanced. Soybean oil futures prices rallied in the wake of the enactment of the American Taxpayer Relief Act (the temporary “fiscal cliff” fix), which renewed the $1-per-gallon biodiesel blenders’ tax credit through the rest of the 2013 fiscal year. The credit had expired at the end of fiscal year 2012. The cash basis on soybean oil was mostly unchanged. A heavy soybean crush mostly to satisfy demand for soybean meal was expected to continue to exert pressure on the soybean oil basis even in the face of the renewal of the blenders’ credit. Most soybean oil users covered their needs through January and into February at lower price levels. Basis coverage was more extensive and nearly solid through March. Basis coverage in AprilJune was estimated at 50% to 60%. The U.S. Department of Agriculture indicated net export sales of U.S. soybean oil during the week ended Dec. 27 totaled 31,300 tonnes, including a sale of 30,000 tonnes to India. A stronger soybean oil market lent strength to other vegetable oils. Canola oil prices advanced even though the oil’s premium to soybean oil futures prices narrowed to 6½c a lb. Palm oil prices moved up with increased world demand as well as the stronger soybean oil market providing a boost. Palm oil futures prices advanced to two-month highs. 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 Jan. 4 Dec. 28 Dec. 21 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Jan. 4 Year ago Midwest beet 31.00 @ 32.00 — — 52.00 29.125 East 25.875 30.375 net 33.85@36.85 203/8@ 233/8 173/8@ 213/8 Paciﬁc beet 33.00 @ 37.00 — — 52.00 Midwest 30.625 Midwest 27.375 31.875 net 32.85@35.85 Cane* 33.00 @ 38.00 — — 53.00 Northeast 21¾@ 24¾ 18¾@ 22¾ 30.875 West 27.625 32.125 net 35.85@38.85 *Spot raw plus 7% plus 8.6 with 2% cash discount. Southeast 217/8@ 247/8 187/8@ 227/8 30.375 27.125 31.625 net Southwest 21½@ 24½ 18½@ 22½ Raw cane 31.125 27.875 32.375 net West 223/8@ 253/8 193/8@ 233/8 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 January-March April-June July-September October-December January-March — Change from — Jan. 4 Dec. 28 Dec. 21 22.20 -.05 — 22.20 -.05 — 22.50 — +.15 22.95 — +.15 23.50 +.10 +.25 23.55 -.20 -.20 Year ago 35.90 35.90 36.00 36.00 35.75 34.10

Chicago soybean oil futures
Bulk in tank cars, cents per lb Jan. 4 — Change from — Delivery close Dec. 28 Dec. 21 January 49.42 +.48 +.71 March 49.90 +.46 +.78 May 50.33 +.42 +.73 July 50.69 +.35 +.19 August 50.66 +.24 +.55 September 50.59 +.16 +.48 Year ago 50.80 51.12 51.50 51.81 51.86 51.89

Edible oils
Bulk, cents per lb — Change from — Year Jan. 4 Dec. 28 Dec. 21 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 47.00 53.75 42.75 50.00 42.25 46.00 38.50 96.00 51.75 66.00 56.00 +.50 +1.25 +.50 +.50 +2.00 +1.25 — -2.25 — — -.25 +1.00 50.50 +.50 49.00 +.75 50.75

Spot soybean oil
Decatur, Ill., bulk, cents per lb
60.00 54.00 48.00 42.00 J A J
Previous Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. January 46.17 @46.92 February 46.41 @47.16 March 46.65 @47.40 April 47.12 @47.87 May 47.33 @48.08 June 47.51 @48.26 July 47.69 @48.44 Western points 45.67 @46.17 45.91 @46.41 46.15 @46.65 46.62 @47.12 46.83 @47.33 47.01 @47.51 47.19 @47.69

+.75 52.25 +3.25 50.75 +4.25 51.50 — 66.00 -2.00 -.25 — -.25 95.25 54.25 91.00 55.75

O
Current Year

38 / January 8, 2013 Milling & Baking News

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Milling & Baking News - January 8, 2013

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