Food Business News - December 20, 2011 - (Page 43)

Ingredient Markets Market commentary for two-week period ended December 16, 2011 Sweeteners Sweetener markets were quiet last week and were expected to remain so through the holiday period and well into the first quarter of 2012. Sugar prices continued to soften while corn sweetener business, mostly concluded earlier, was completed at higher levels than in 2011. Prices of bulk refined sugar for spot through Dec. 31, 2012, ranged from 55c a lb f.o.b. to as high as 59c, although little if any trading has taken place at the higher level for some time. Traders indicated there wasn’t much trading at any level last week, and any business that was completed occurred closer to the 53@55c-a-lb range. Prices dipped below year-ago levels for the first time since mid-September. Some sources indicated cane sugar was more available than beet sugar. Although supplies loosened from a few weeks ago, they still were snug. Union members remained locked out of American Crystal Sugar Co. plants, which were running with replacement workers. While some 2012 liquid corn sweetener contracting was yet to be finished, the majority has been completed, and most dried business was finished even earlier in the fall. Prices remained firm with refiners focusing on production capacity limitations and good demand from Mexico (in the case of 55% high-fructose corn syrup) as strong negotiating points. Contracted prices for most liquid corn syrup and 42% HFCS were said to have been completed for 2012 at a $2@3 a cwt hike from 2011 levels, although individual contracts saw wider spread in prices, both above and below that range. Dextrose prices were said to be up $4 a cwt from 2011 contracted levels with limited production capacity a major concern. Pricing for 55% HFCS was less transparent due to changes in the contracting process instituted by corn refiners this year. Continued strong exports were said to be a key factor as the Mexican beverage industry substituted the product for sugar that was sent to the United States. Nearby domestic raw sugar futures (No. 16) in New York traded below 36c a lb, off about 1c for the week, down about 5c from early September and down about 2c from a year ago. New York world sugar futures (No. 11) were trading below 23c a lb for all contract months, down more than 25%, from the same time a year earlier. In its December Sugar and Sweeteners Outlook last week the U.S. Department of Agriculture indicated relatively low world sugar stocks may limit further declines in world sugar prices. Global sugar surpluses of 4.6 million tonnes, raw value in 201011 and of 8.2 million tonnes estimated for 2011-12 still were “overcoming” deficits from earlier years. FBN Edible Oils Bookings of edible oils were limited last week. Price changes were mixed. Soybean oil prices were unchanged. Soybean oil futures prices sustained slim declines even as the rest of the soy complex posted gains. The cash basis on soybean oil softened but was seen as stabilizing at the week’s end. The effect of the prospective demise of the $1-per-gallon blender’s credit was partly offset by poor crushing margins. Declining futures prices encouraged some soybean oil buyers to extend contract balances. But, coverage was lean for the time of year averaging about 30 days, and basis coverage was running out for many buyers who were hoping for a more significant price break. Overall, buyers seemed to expect futures prices to continue to trend lower and were hesitant to commit to longer-term contracting. The National Oilseed Processors Association estimated the U.S. November soybean crush at 141,277,000 bus compared with 141,179,000 bus in October and 148,867,000 bus in November 2010. The soybean crush exceeded trade expectations. NOPA estimated November soybean oil production at 1,598 million lbs compared with 1,632.3 million lbs in October and 1,708.4 million lbs in November 2010. The November yield of oil per bu of soybeans crushed was 11.31 lbs, which was lower than expected and compared with 11.56 lbs in October and 11.48 lbs in November 2010. Palm oil prices softened. Canola oil (refined, bleached and deodorized) was offered at a 5c premium to soybean oil futures prices. Corn oil and sunflowerseed oil prices held steady. 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 Dec. 16 Dec. 9 Dec. 2 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Dec. 16 Year ago Midwest beet 55.00 @ 59.00 -2.00 -3.50 57.00 21.375 24.875 net 153/8@ 193/8 153/8@ 193/8 29.85@33.85 24.625 East Pacific beet 55.00 @ 59.00 -2.00 -3.50 57.00 Midwest 22.925 26.425 net 28.85@32.85 26.175 Midwest Cane* 55.00 @ 59.00 -2.00 -3.50 57.00 Northeast 16¾@ 20¾ 16¾@ 20¾ 23.125 26.625 net *Spot raw plus 7% plus 15.5c with 2% cash discount. Southeast 167/8@ 207/8 167/8@ 207/8 31.85@35.85 26.375 West 22.625 26.125 net Southwest 16½@ 20½ 16½@ 20½ 25.875 Raw cane 23.325 26.825 net West 173/8@ 213/8 173/8@ 213/8 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 January-March April-June July-September October-December January-March — Change from — Dec. 16 Dec. 9 Dec. 2 35.95 -.95 -1.40 35.95 -.95 -1.40 36.50 -.70 -.80 37.10 -1.10 -.35 36.50 +.50 -1.00 34.30 — -.25 Year ago 37.75 37.75 37.70 38.20 34.74 34.00 Chicago soybean oil futures Bulk in tank cars, cents per lb Dec. 16 — Change from — Delivery close Dec. 9 Dec. 2 January 49.55 -.05 -.70 March 49.93 -.05 -.72 May 50.31 -.04 -.68 July 50.62 -.02 -.67 August 50.68 -.01 -.66 September 50.71 -.01 -.65 Year ago 54.13 54.63 55.01 55.21 55.21 55.16 Edible oils Bulk, cents per lb — Change from — Year Dec. 16 Dec. 9 Dec. 2 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 49.50 49.50 51.00 49.75 50.00 53.50 63.00 95.00 54.25 91.00 54.50 — -.25 +2.50 +.25 -2.75 -5.00 +5.00 — — — +.25 -1.25 -.50 50.75 36.50 Spot soybean oil Decatur, Ill., bulk cents per lb 63.00 53.00 43.00 33.00 23.00 D M J Previous Year +2.00 44.00 -.75 -1.50 53.25 59.00 Crude soybean oil Bulk in tank cars, cents per lb Delivery Decatur, Ill. December 49.30 @49.55 January 49.30 @49.55 February 49.49 @49.74 March 49.68 @49.93 April 50.37 @50.62 May 50.56 @50.81 June 50.72 @50.97 Western points 48.55 @49.05 48.55 @49.05 48.74 @49.24 48.93 @49.43 49.62 @50.12 49.81 @50.31 49.97 @50.47 -3.50 63.25 +6.00 80.00 -5.00 -.25 — -.75 83.00 60.00 58.00 57.50 S Current Year December 20, 2011 FOODBUSINESS NEWS ® 43

Table of Contents for the Digital Edition of Food Business News - December 20, 2011

Food Business News - December 20, 2011
Government to decide on B.P.A. ban by March 31
Dairy Business News - Higher prices lead to sluggish fresh milk sales
Commodity, ingredient prices trending lower at year end
Editorial - Food revolution in wake of food truck growth
Food companies alleging egg price fixing from 1999 to 2008
Nestle details progress made on nutrition front
NPD Group: Restaurant traffic flat in 2011
Yum! raises guidance on global strength
Coca-Cola forms partnerships to develop 100% plant-based bottles
Lempert sees economizing as key trend in 2012
Blount buys Cape Cod Chowder Co.
Falconhead Capital acquires Rita’s Water Ice Franchise
Better margins seen in 2012
Sara Lee to buy Dutch cafe store operator
Sara Lee to base North American Meats in Chicago
Clearer picture of local food
Smithfield Foods income falls 16% in second quarter
Earnings filing delay for Diamond Foods
Health and Wellness - Researchers shed light on probiotics benefits
Ingredient Innovations - Oils factor into french fry innovation
Dairy Business News - Dairy Ingredients Symposium to be held in March
Dairy Business News - Cultures increase cottage cheese yield
Dairy Business News - WhiteWave moves ahead on sustainability initiatives
Dairy Business News - Steve Millard to lead Emmi Roth USA
Dairy Business News - October nonfat dry milk output down 12% from year ago
New Product Trends - Local foods, children's nutrition top N.R.A. trends
New Product Trends - Niman Ranch introduces all-natural beef entrees
New Product Trends - Pamela’s Products launches Whenever Bars
New Product Trends - Mission Foods adds Artisan Style Tortillas
New Product Trends - Sunsweet launches Plum Amazins
Food Ingredients Europe
Ingredient Market Trends
Ingredient Markets
Supplier Innovations and News - Cocoa production method wins Fi Europe honor
Supplier Innovations and News - System reduces acrylamide level in coffee
Supplier Innovations and News - Kalsec introduces specialty flavors
Supplier Innovations and News - Vitiva launches Sweet’nVit stevia brand
Supplier Innovations and News - Spicetec hires technical services specialist
Supplier Innovations and News - Ingredient adds shelf life, works in flavor system
Ad Index
Food Business in the News

Food Business News - December 20, 2011