Food Business News - September 13, 2011 - (Page 54)

Ingredient Markets Market commentary for one-week period ended September 9, 2011 Sweeteners Sweetener market activity was slow last week as sugar offers were raised. Sugar supplies were tight, but buyers who still needed nearby sugar searched for lowerpriced material. There was little change on the corn sweetener front with early indications 2012 offers may be up 30%. Offers on domestic bulk refined sugar were raised to 62c a lb f.o.b. for spot through Sept. 30, 2012, by at least one major cane refiner and beet processor last week. There was no evidence of sugar trading at the higher level. Buyers sought sugar for nearby needs closer to 55c a lb and were able to find small amounts at levels below offer prices, although the sugar may not have been in ideal locations. A few processors still had supply available for nearby and for 2012 that they were willing to sell. Other beet processors with a large percentage of their prospective 2012 production already booked held firm at the 62c-a-lb level. Shipments from Mexico continued but at a slower pace than earlier in the year as supplies there grew tighter and prices advanced ahead of the cane harvest. Trade sources indicated Mexico’s 150,000-tonne sugar import quota, issued in part to make up for earlier strong shipments to the United States, went partially unfilled. Sugar supplies remained tight in the final month of the 2010-11 marketing year with no hope of beet sugar from the 2011 crop becoming available early. New crop beet sugar likely will be later than usual. Last year 8% of sugar beets had been lifted in North Dakota and 7% in Minnesota as of Sept. 4, according to U.S. Department of Agriculture. The first beets were harvested for “pre-piling” in the Red River Valley last week, and factories were brought on line. But sources indicated the harvest will proceed slowly, providing just enough beets to keep factories running and giving the late-planted and slow-developing beet crop more time to deposit sugar. Typically, harvesting begins in earnest by Oct. 1, but it may be closer to mid-October this year. Sugar beet crop condition ratings again declined in the Red River Valley as of Sept. 4. Rated good to excellent was 65% of the crop in North Dakota (67% a week earlier and 90% a year ago) and 51% in Minnesota (52% a week earlier and 92% last year), U.S.D.A. field offices said. There was no movement in the American Crystal Sugar Co. lockout that began Aug. 1. Beet factories started up with replacement workers last week. There also was no evidence of activity in 2012 corn sweetener contracting. The trade in part waited on the Sept. 12 U.S.D.A. Crop Production report, which was expected to show a drop in estimated 2011 corn production from August. FBN Edible Oils Bookings of bakery shortening were light last week as prices remained stubbornly above levels most buyers were willing to pay. Price changes were mixed. Soybean oil futures prices advanced mostly because of higher crude oil prices before Friday. Strength in soybean oil futures coupled with a stubbornly strong cash basis discouraged buyers from adding to coverage, especially since most last booked when basis levels were two to three times lower than current levels. Prices were well above most buyers’ targets. But with third-quarter contracts running out shortly, there were users who still needed to add some fourthquarter coverage. There was some light basis coverage taken by re-packers and flat coverage through March added by bakers. Prices of other products were mixed, and trading was slow. Values of cottonseed oil and palm oil advanced, while prices of peanut oil, corn oil and canola oil eased. Canola crushings in Canada during the week ended Sept. 7 were up 52% from a week earlier. Coconut oil and sunflowerseed oil were steady. The canola crop in North Dakota was 49% harvested as of Sept. 4, slightly behind 61% as the 2006-10 average for the date, the state’s U.S.D.A. field office said. Development of the North Dakota sunflower crop was well behind the average, but the crop was in better condition with ratings of 73% good to excellent compared with 65% a year ago. Animal fat prices declined as slaughter increased seasonally, but demand from the biodiesel sector remained strong. FBN Beet and cane sugar f.o.b. plant, cents per lb Sweeteners Delivered basis, cents per lb HFCS spot price1 HFCS list price2 Regular — Change from — Year corn Sept. 9 Sept. 2 Aug. 26 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Sept. 9 Year ago Midwest beet 59.00 @ 62.00 +2.00 +2.00 64.00 21.375 24.875 net 153/8@ 193/8 153/8@ 163/8 29.85@33.85 24.625 East Pacific beet 59.00 @ 62.00 +2.00 +2.00 64.00 Midwest 22.925 26.425 net 28.85@32.85 26.175 Midwest Cane* 60.00 @ 62.00 +1.00 +1.00 64.00 Northeast 16¾@ 20¾ 16¾@ 17¾ 23.125 26.625 net *Spot raw plus 7% plus 14.7c with 2% cash discount. Southeast 167/8@ 207/8 167/8@ 177/8 31.85@35.85 26.375 West 22.625 26.125 net Southwest 16½@ 20½ 16½@ 17½ 25.875 Raw cane 23.325 26.825 net West 173/8@ 213/8 173/8@ 183/8 26.575 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 October-December January-March April-June July-September October-December — Change from — Sept. 9 Sept. 2 Aug. 26 41.25 -.25 — 41.25 -.25 — 40.15 -.40 -.30 40.45 -.15 — 40.20 -.10 -.10 37.30 -.20 — Year ago 36.90 36.90 32.90 33.10 31.30 30.50 Chicago soybean oil futures Bulk in tank cars, cents per lb Sept. 9 — Change from — Delivery close Sept. 2 Aug. 26 September 58.20 +.46 +1.60 October 58.34 +.46 +1.41 December 58.71 +.45 +1.39 January 58.89 +.42 +1.35 March 59.11 +.56 +1.43 May 59.16 +.68 +1.44 Year ago 41.25 41.36 41.76 42.07 42.35 42.55 Edible oils Bulk, cents per lb — Change from — Year Sept. 9 Sept. 2 Aug. 26 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 57.75 59.00 55.50 58.50 56.00 61.75 75.00 97.50 61.50 95.00 63.25 — -1.00 -1.50 +1.25 +1.50 — — -.50 -.50 — +.25 +1.75 37.75 +2.00 37.00 -1.00 35.50 Spot soybean oil Decatur, Ill., bulk cents per lb 63.00 53.00 43.00 33.00 23.00 S D M Previous Year J Current Year Crude soybean oil Bulk in tank cars, cents per lb Delivery Decatur, Ill. September 56.95 @57.70 October 57.09 @57.84 November 57.27 @58.02 December 57.46 @58.21 January 58.14 @58.39 February 58.25 @58.50 March 58.36 @58.61 Western points 56.20 @57.20 56.34 @57.34 56.52 @57.52 56.71 @57.71 57.39 @57.89 57.50 @58.00 57.61 @58.11 +2.25 42.75 +1.25 47.25 — — -2.50 — 50.00 55.00 69.00 45.50 — 54.00 +2.25 46.50 54 FOODBUSINESS NEWS ® September 13, 2011

Table of Contents for the Digital Edition of Food Business News - September 13, 2011

Food Business News - September 13, 2011
Kraft’s split on schedule
Nonfat dry milk prices drop as milk output rises
Shining a light on sugary drinks
Web Contents
Editorial - Preparing for the rising cost of fresh water
Private label products make gains in salad, sugar categories
Seaboard’s Rod Brenneman to lead Butterball
Limited avocado supply hurts Calavo earnings
PepsiCo outlines path for global snacks growth
F.D.A. initiates projects to trace foodborne illnesses
U.S.D.A. study shows food insecurity down from 2009
McCormick completes acquisition of Kamis
Leadership team set for Sara Lee’s CoffeeCo spin-off
Seneca, Allens terminate merger negotiations
Human milk components the focus of partnership
JBS shifting operations in Brazil
Dannon opens new innovation center
July red meat production down 4% from year ago
Aramark to acquire Filterfresh from G.M.C.R.
Tyson Foods to ramp up prepared foods output
McDonald’s investing $1 billion in Canada
Rowland Coffee integration on track at Smucker
Food trucks transitioning from fad to trend
Kraft’s split on schedule
Restructuring charges weigh on Campbell earnings
Starbucks K-Cup Portion Packs going to grocery stores
Sanderson Farms swings to loss in quarter
Nestle completes production unit for nutrition factory
Restaurant Performance Index falls beneath 100 to 11-month low in July
Washington - Shining a light on sugary drinks
Market Insight - Nonfat dry milk prices drop as milk output rises
Health and Wellness - School lunches get slimmer
Ingredient Innovations - Possible opportunity in immunity
Flavor Trends - Fire and flavor
New Product Trends - Expanding flavors and protein sources in jerky
New Food Products - Dannon introduces Activia Selects yogurt
New Food Products - Balance Bar launches nimble bar for women
New Food Products - Nestle introducing Nescafe LiquiFresh Gourmet Blend
New Food Products - New jerky from Jack Link’s uses Cholula Hot Sauce
New Food Products - Odwalla adds Super Protein Mango smoothie
New Food Products - Frito-Lay introduces Doritos and Cheetos Fiery Fusion
New Food Products - Burger King adds Quaker oatmeal to breakfast menu
New Food Products - Lifestyle Foods launching G2 snack line
INGREDIENT MARKET TRENDS - Winter wheat planting under way except in dry Southwest
Ingredient Markets
Supplier Innovations and News - Soy blend has texture characteristics of meat
Supplier Innovations and News - Sustainable palm oil certifi cation reaches Brazil
Supplier Innovations and News - Grain Processing Corp. promotes scientist
Supplier Innovations and News - Starches offer retort, freeze/thaw benefits
Supplier Innovations and News - Red Arrow launches pot roast fl avor
Supplier Innovations and News - Takasago names v.p. of consumer insight
Supplier Innovations and News - Honey, fig flavors join balsamic vinegar line
Ad Index
Food Business in the News

Food Business News - September 13, 2011