Food Business News - May 22, 2012 - 70

Ingredient Markets
Market commentary for one-week period ended May 18, 2012

Sweeteners
Activity in sweetener markets remained slow the week following the May 10 U.S. Department of Agriculture’s World Agricultural Supply and Demand Estimates, which received mixed reviews from the trade due to a surge in the 2012 ending stocks-to-use ratio. Some weakness in 2012-13 prices was evident. The U.S. sugar market was quiet with bulk reﬁned cane and beet sugar offered unchanged across all regions at 48c a lb for spot through 2011-12 and in some cases through the 201213. A limited amount of material continued to sell slightly below 48c a lb for the remainder of 2011-12. Sales for 2012-13 were closer to 47.5c a lb, indicating continued weakness as concern about supplies for next year diminished following the WASDE. There was some inquiry but no trading for 2014. The surge in the 2011-12 ending stocksto-use ratio to 14.2% from 6.8% in April resulted from an estimated 8% increase in total supply, to 13,430,000 tons, raw value, more than offsetting an increase of 1% in domestic use, to 11,510,000 tons. The supply increase from April was a combination of forecast increases in U.S. cane and beet sugar production (up 2%) and in cane imports (up 30%) including shipments from Mexico (up 36%) and an earlier announced tariff rate quota increase (up 34%). Initial projections for 2012-13 sugar supply and use and an ending stocks-to-use ratio of 10.3% also

came in above expectations in some cases. Sugar beet planting was completed in the four largest producing states and was nearing completion in other states. The crop was 71% emerged in North Dakota (18% as the 2007-11 average for the date), 61% in Idaho, 59% in Colorado, 37% in Montana and 10% in Wyoming, according to state ﬁeld ofﬁces of the U.S.D.A. The crop in Minnesota was rated 69% good to excellent and 26% fair with stands in Michigan “in good shape.” Processing of the 2011 U.S. beet crop came to a conclusion. Cane sugar prices in Mexico continued to soften and were near month-ago levels. With freight and other charges, delivered prices into the United States would be near U.S. levels, sources indicated, which would dampen interest from U.S. buyers. Prices in Mexico weakened since May 4 when that country announced a 250,000-tonne import quota, which it said would only be assigned as needed. Prices there had strengthened through April due to weather-reduced production. For the season-to-date through May 14, sugar production was down 7% from the same period a year earlier, according to Mexico’s national sugar cane committee. FBN

Edible Oils
Bookings of edible oils were erratic last week with participants thrown off balance by the extent of the drop seen in soybean oil markets. Prices of most other

ingredients also continued to decline. Soybean oil prices continued to slide. Soybean oil futures prices dropped even as soybean and soybean meal futures posted irregular price changes following recent severe losses, with old crop futures moving higher while new crop contracts continued to give ground. The cash basis on soybean oil was unchanged, although with food demand ﬂat and biodiesel demand sluggish, soybean oil stocks remained stubbornly high at around 2.38 billion lbs at the end of April, up from 2.36 billion lbs in March and compared with 2.69 billion lbs in April 2011, according to the National Oilseeds Processors Association. NOPA indicated the soybean crush in April was 131.7 million bus, down from 140.5 million bus in March and compared with 121.3 million bus in April 2011. The share of soybean oil in the value of the soybean crush has plunged to around 37% compared with 43% to 45% just a few weeks ago. Users of soybean oil were active buyers a couple of weeks ago when futures prices dropped from 55c a lb to around 54c and extended contract balances to 45 to 60 days. What looked like good value then looked less so now with futures prices testing 50c a lb. Some buyers took advantage of last week’s price decline to extend coverage, but others were wary of booking supply now only to ﬁnd prices decline further in coming weeks. Most other vegetable oils followed soybean oil prices lower. 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 May 18 May 11 May 4 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet May 18 Year ago Midwest beet 47.75 @ 48.00 — -.25 55.00 23.375 27.875 net 173/8@ 213/8 153/8@ 193/8 33.85@37.85 26.625 East Paciﬁc beet 47.75 @ 48.00 — -.25 55.00 Midwest 24.925 29.425 net 32.85@36.85 28.175 Midwest Cane* 47.75 @ 48.00 — -.25 55.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 25.125 29.625 net *Spot raw plus 7% plus 14c with 2% cash discount. Southeast 187/8@ 227/8 167/8@ 207/8 35.85@39.85 28.375 West 24.625 29.125 net Southwest 18½@ 22½ 16½@ 20½ 27.875 Raw cane 25.325 26.825 net West 193/8@ 233/8 173/8@ 213/8 28.575 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 May-June July-September October-December January-March April-June — Change from — May 18 May 11 May 4 30.65 — +.30 30.65 — +.30 30.75 — +.30 30.55 — +.35 31.00 — +.10 31.10 — — Year ago 35.15 35.15 35.50 35.30 34.30 34.20

Chicago soybean oil futures
Bulk in tank cars, cents per lb May 18 — Change from — Delivery close May 11 May 4 July 50.32 -1.92 -3.33 August 50.54 -1.91 -3.31 September 50.74 -1.91 -3.31 October 50.92 -1.89 -3.30 December 51.31 -1.84 -3.26 January 51.54 -1.82 -3.26 Year ago 57.46 57.69 57.94 58.10 58.46 58.64

Edible oils
Bulk, cents per lb — Change from — Year May 18 May 11 May 4 ago Soybean oil, Decatur 49.25 Loose lard, Chicago 53.25 Edible tallow, Chicago 51.75 Cottonseed oil, Miss. PBSY 50.75 Palm oil, ports 51.75 Palm kernel oil, ports 53.75 Coconut oil 58.00 Peanut oil, Southeast 107.00 Corn oil, Decatur 60.25 Sunﬂowerseed oil, Midwest 81.00 Canola oil, Midwest 54.25 -1.75 -.50 -2.25 -1.75 -3.00 -1.50 -4.00 +3.00 -.50 +2.00 -2.25 -3.50 -1.00 -2.25 -3.50 -3.25 -1.50 -4.00 56.75 53.50 53.00 56.25 58.50 71.00 97.00

Spot soybean oil
Decatur, Ill., bulk cents per lb
61.00 55.00 49.00 43.00 37.00 31.00 M A N
Previous Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. May 49.07 @49.32 June 49.07 @49.32 July 49.32 @49.57 August 49.54 @49.79 September 49.74 @49.99 October 49.92 @50.17 November 50.43 @50.68 Western points 48.32 @48.82 48.32 @48.32 48.57 @49.07 48.79 @49.29 48.99 @49.49 49.17 @49.67 49.68 @50.18

+5.50 81.00 -1.25 75.00 +2.00 104.00 -4.50 60.00

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