Milling & Baking News - March 4, 2014 - 52

Ingredient Week 

Sweeteners
Refined sugar prices were firm to
stronger on slow beet sugar deliveries
from the Upper Midwest, the lack of offers from Mexico and rising raw sugar
futures prices as the result of lower sugar production forecasts for Brazil.
Although prices pulled back Friday,
New York world raw sugar prices surged
as much as 3c a lb, or 20%, since late January, mainly on forecasts of lower sugar
production in top-producing Brazil.
Offers of bulk refined beet sugar were
steady to firm at 26.5@27c a lb f.o.b. Midwest while refined cane sugar prices
firmed to 28c a lb f.o.b., with some trading above 29c a lb noted and offers still
above 30c a lb. Activity was slow with
most buyers having previously covered
their 2014 needs. There was increased
inquiry for 2015 as pricing ideas firmed
a bit further out due to forecasts that
global supplies may tighten more than
earlier expected, mainly due to Brazil.
Poor rail performance continued to
plague beet sugar deliveries from the
Upper Midwest, even though processors
have added trucks to supplement shipments. Some buyers continued to search
for fill-in supply from other beet processors and from cane refiners.
Speakers at last week's International
Sweetener Colloquium noted uncertainty about supply from Mexico after
record exports to the U.S. market last
year. A smaller crop and commitments

Beet and cane sugar
- Change from -
Feb. 28
Feb. 21 Feb. 14
Midwest beet 26.50 @ 27.00
-
+.50
Paciﬁc beet
27.50 @ 31.50
-
+.50
Cane*
28.00 @ 32.00 +.50
+.50

Year
ago
28.00
30.00
30.00

*Spot raw plus 6.1% plus 4c with 2% cash discount.

Raw cane
Delivered reﬁner, cents per lb
Year
ago
20.45
20.45
21.35
22.25
22.85
23.30

Spot soybean oil
Decatur, Ill., bulk, cents per lb
60.00
55.00
50.00
45.00
40.00
35.00
30.00
S
Previous Year

Delivered basis, cents per lb
42% HFCS spot price1
Midwest
Northeast
Southeast
Southwest
West

Feb. 28
15⅜@ 18⅜
16¾@ 19¾
16⅞@ 19⅞
16½@ 19½
17⅜@ 21⅜

Year ago
20⅜@ 23⅜
21¾@ 24¾
21⅞@ 24⅞
21½@ 24½
22⅜@ 25⅜

Prices reﬂect 2014 reﬁner oﬀers
HFCS list price2
Regular
corn
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
25.250 East
21.250
25.250 net
30.00@33.00
27.500 Midwest 29.00@32.00
23.500
27.750 net
27.500 West
23.000
27.500 net
33.00@36.00
28.500
22.500
27.000 net
29.750
23.750
28.250 net

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

- Change from -
Contract
Feb. 28 Feb. 21 Feb. 14
Nearby
22.15
+.30
+.40
April-June
22.15
+.30
+.40
July-September
22.45
+.20
+.40
October-December 23.00
+.25
+.75
January-March
23.10
+.40
+.50
April-June
23.20
+.25
+.40

Edible Oils
Bookings of bakery shortening were
limited last week. Prices advanced.
Soybean oil prices advanced and were
up nearly 6c a lb from late January. Soybean oil futures prices traded sideways for
most of last week but ended higher. Tight
U.S. soybean supplies and delays in the

Brazil harvest that may extend foreign demand for U.S. supply kept prices firm. The
cash basis on soybean oil strengthened.
The recent rally in soybean oil futures
prices kept many buyers at bay with the
result that contract balances were narrowing. Most buyers were covered only
about 30 days ahead compared with
maintaining 45 to 60 days in backlogs,
which was typical just a few weeks ago.
Soybean oil users proved more willing to take basis coverage out of concern
they may not see better levels anytime
soon. Basis coverage for the second
quarter of 2014 was estimated at 70%.
The U.S. Department of Agriculture on
Feb. 21, in its Grains and Oilseeds Outlook
issued at the Agricultural Outlook Forum
in Washington, projected domestic use of
soybean oil in the upcoming 2014-15 marketing year at 18.4 billion lbs, down 0.8%
from the forecast for the current year. The
reduction was tied to expected lower use
of soybean oil for biodiesel.
Cottonseed oil prices surged on very
short supply of seed for crushing. Users
were switching to alternative oils, such
as corn oil. In response, the latter market
continued to strengthen.
Rail logistical problems propped up
the canola oil price even in the face of the
record 2013 Canadian canola crop.
Palm oil prices advanced, and crude
palm kernel oil prices moved higher,
too. Refined P.K.O. was offered 6@18c a
lb higher than the crude. MBN

Sweeteners

f.o.b. plant, cents per lb

to export much larger amounts outside
the North American Free Trade Agreement region supported ideas much less
Mexican sugar may be shipped north
this year. But some market participants
remained wary that shipments may be
larger than expected.
The U.S. Department of Agriculture
on Feb. 21 released its initial 2014-15
U.S. sugar supply-and-demand projections. The department forecast a return
to ample supplies, not unlike 2012-13, including record imports of Mexican sugar,
record total supply and a 20% increase in
ending stocks from 2013-14, resulting in a
high ending stocks-to-use ratio of 17.9%,
equal to that of 2012-13. Should those
forecasts be realized, traders suggested
the market again would be oversupplied,
increasing the likelihood of sugar loan
forfeitures in the 2014-15 marketing year.
The U.S. corn sweetener market was
mostly quiet. In its 2014-15 outlook, the
U.S.D.A. forecast a rebound in U.S. highfructose corn syrup exports to Mexico, at
the expense of domestic Mexican sugar
use, due to lower prices for HFCS. MBN

D
Current Year

52 / March 4, 2014 Milling & Baking News

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Feb. 28
- Change from -
Delivery
close
Feb. 21
Feb. 14
March
41.52
+.57
+2.37
May
41.79
+.56
+2.32
July
41.87
+.43
+2.11
August
41.64
+.28
+1.95
September 41.23
+.09
+1.69
October
40.73
-.02
+1.44

Edible oils
Bulk, cents per lb
Year
ago
49.47
49.67
49.94
49.94
49.80
49.41

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
February
40.02 @40.52
March
40.02 @40.52
April
40.41 @40.91
May
40.54 @41.04
June
40.58 @41.08
July
40.62 @41.12
August
40.39 @40.89

Western points
39.27 @39.77
39.27 @39.77
39.91 @40.41
40.04 @40.54
40.08 @40.58
40.12 @40.62
39.89 @40.39

- Change from - Year
Feb. 28 Feb. 21 Feb. 14 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

40.75
35.00

+.75
+2.00

+3.50 48.25
+2.75 45.00

36.00

+1.00

+1.50 43.50

67.25
44.50

+11.00 +13.00 49.25
+1.50 +3.00 41.25

48.50
65.50

-
+2.00

+2.50 43.00
+3.00 41.50

62.00
42.75

-
+1.75

-.25 80.00
+2.50 52.50

58.00
44.75

+1.00
+1.00

+2.00 65.00
+3.50 58.00

bakingbusiness.com / world-grain.com

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Milling & Baking News - March 4, 2014

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