Milling & Baking News - April 29, 2014 - 44

Ingredient Week 

Sweeteners
The U.S. Department of Commerce
said April 18 it would initiate antidumping and countervailing duty investigations of sugar imports from Mexico as petitioned by the American Sugar
Coalition. While confirmation of the investigation wasn't a surprise to most, it
generated turmoil in the sugar and corn
sweetener markets and supported gains
in domestic sugar prices.
The next key step in the process is for
the U.S. International Trade Commission
to announce its preliminary determination
on or before May 12 of whether imports of
sugar from Mexico caused material injury
or threat of material injury to the domestic
market. (See story on Page 12.)
After rising the prior two weeks on
news of the anti-dumping petition, cash
sugar prices steadied last week. Bulk refined beet sugar was offered mostly at
31@32c a lb f.o.b. Midwest for 2014, but
some trading at 30c also was noted. Some
suppliers said they encountered resistance at the top end of the price range
with buyers willing to hold out a while
longer to see if prices turn lower pending
further developments in the trade case.
But another broker said, "The opportunity for low-priced sugar is gone."
There was an array of cane sugar prices, ranging from flat with beet sugar up
to the mid-30c-a-lb range. While the trade
rift with Mexico affected nearly all types
of sugar, cane arguably may be the most

Beet and cane sugar
- Change from -
Apr. 25
Apr. 18 Apr. 11
Midwest beet 30.00 @ 32.00 -1.00
-
Paciﬁc beet# 32.00 @ 34.00
-
+1.00
Cane*
33.00 @ 35.00
-
+2.00

Year
ago
26.50
28.00
28.00

*Spot raw plus 6% plus 4c with 2% cash discount.

Raw cane
Delivered reﬁner, cents per lb
Year
ago
19.70
19.70
19.80
20.85
21.50
21.85

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

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

Apr. 25
16⅜@ 18⅜
17¾@ 19¾
17⅞@ 19⅞
17½@ 19½
18⅜@ 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
Apr. 25 Apr. 18 Apr. 11
Nearby
24.70
+.05
+.50
May-June
24.70
+.05
+.50
July-September
24.85
+.20
+.55
October-December 25.40
+.65
+.80
January-March
25.45
+.80
+.95
April-June
25.10
+.45
+.35

Edible Oils
Bookings of bakery shortening were limited last week. Price changes were mixed.
Soybean oil prices declined. Soybean oil
futures prices declined after the previous
week's run-up. The cash soybean oil basis
strengthened on tight soybean supplies,
anticipation of refiner shutdowns in May,

expectations for renewal of the biodiesel
blenders' credit and reduced crush expected in the final two quarters of 2013-14.
Refiners were importing soybeans from
South America in an effort to address the
tightening supply situation. The U.S. Department of Agriculture forecast 2013-14
soybean imports at a record 65 million
bus. That forecast may be exceeded.
Soybean oil users on average held contract balances extending about 60 days.
Users' coverage of soybean oil basis was
completed for April-June and was estimated at near 70% for July-September.
The U.S.D.A. indicated net export
sales of soybean oil during the week
ended April 17 totaled 5,700 tonnes, up
5% from the previous week and up 21%
from the prior four-week average.
The premium to soybean oil futures
prices asked for refined canola oil in the
Midwest widened to 6¾c a lb. Refiners
continued to struggle with an inadequate supply of seed to crush because of
still shoddy rail logistics and producers'
willingness to ration seed sales in the
hope of securing higher prices.
Statistics Canada on April 24, based on a
producer survey, forecast 2014 canola planted area in Canada at 19,801,000 acres, down
1% from 19,936,000 acres in 2013. The forecast was well below pre-report trade expectations that averaged 21.1 million acres.
Palm oil prices were little changed
from the previous week. Cottonseed oil
remained at nosebleed levels. MBN

Sweeteners

f.o.b. plant, cents per lb

affected since that is the type of sugar imported from Mexico. Some U.S. cane refiners were not seeking new sales because
they were uncertain of the portion of their
supply supplemented by Mexican raws
or estandar. Users who need non-bioengineered sugar, such as cane sugar, were
in an even greater supply quandary since
nearly all beet sugar is bioengineered.
One company declared force majeure
on its Mexican sugar contracts, forcing
buyers to other suppliers. Imports of sugar from Mexico were record high during
October-March of 2013-14. The supply
concern mostly was for August forward.
U.S. sugar beet planting as of April 20
continued to lag the 2009-13 average pace
in most states with the exception of Idaho
at 65% (65% as average for the date) and
Colorado at 30% (23%), the U.S.D.A. said.
No beets were planted as of April 20 in
Michigan, Minnesota or North Dakota.
Planting was 7% completed in Wyoming
and 6% in Montana. Louisiana's cane crop
was rated 31% good to excellent, 48% fair
and 21% poor to very poor as of April 20,
down slightly from a week earlier. MBN

J
Current Year

44 / April 29, 2014 Milling & Baking News

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Apr. 25
- Change from -
Delivery
close
Apr. 18
Apr. 11
May
42.92
-.49
+.82
July
43.15
-.51
+.89
August
43.00
-.50
+.92
September 42.71
-.46
+.84
October
42.21
-.39
+.71
December 42.21
-.45
+.58

Edible oils
Bulk, cents per lb
Year
ago
49.66
49.54
49.16
48.80
48.48
48.26

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
April
43.92 @44.07
May
43.92 @44.07
June
44.04 @44.19
July
44.40 @44.55
August
44.25 @44.40
September
43.96 @44.11
October
43.46 @43.61

Western points
43.32 @43.42
43.32 @43.42
43.44 @43.54
43.80 @43.90
43.65 @43.75
43.36 @43.46
42.86 @42.96

- Change from - Year
Apr. 25 Apr. 18 Apr. 11 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

44.25
54.00

-.25
+.50

+2.25 50.25
+11.50 43.50

46.00

-.50

+1.00 43.00

79.00
43.50

+.50
-.25

+8.00 50.50
+.25 41.50

49.00
64.50

-
+1.50

-
44.75
+2.75 38.00

57.50
42.75

-.50
-.25

-
+.25

59.00
49.50

-
+.25

-
64.00
+3.50 61.25

78.50
48.00

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Milling & Baking News - April 29, 2014

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