Food Business News - July 31, 2012 - (Page 51)

Market commentary for one-week period ended July 27, 2012 Sweeteners The sweetener market’s focus last week was on the deteriorating corn crop and the prospect of higher 2013 corn sweetener prices. Sugar markets were quiet. Although corn futures prices eased from the prior week’s record highs, values through July 2013 were not far below $8 a bu as the condition of the corn crop continued to deteriorate. Ideas in the market suggested corn sweetener pricing for 2013 may begin around 5c a lb above 2012 levels, although there was talk of pricing below and modestly above that number. Little activity was expected before the Aug. 10 U.S.D.A. Crop Production report. Any significant changes to corn syrup pricing and supply spills over into the sugar market because of trade with Mexico. While a several-cent-lb increase still would leave sugar prices at a wide premium to corn syrup in the United States, it would significantly narrow the gap, maybe to even, in Mexico due to transportation costs of high-fructose corn syrup and lower sugar prices there. That, in turn, may affect Mexican sugar shipments to the United States. The U.S. sugar beet and cane crops progressed well. Sugar beet crop ratings in the Red River Valley held above year-ago levels, declined the week ended July 22 but may improve after last week’s rainfall. Ratings in Colorado and Wyoming improved but were below year-ago levels. Beet crops rated good to excellent on July 22 were 73% in North Dakota (80% a week earlier), 72% in Minnesota (76%), 64% in Colorado (59%) and 57% in Wyoming (56%), according to U.S.D.A. field offices in those states. The Louisiana sugar cane crop was rated 72% good to excellent, down from 75% a week earlier but above 40% a year ago. Because of early planting and good growing conditions, it was thought the sugar beet harvest in parts of the Red River Valley may begin in mid-August. Prices of bulk refined sugar for the current year remained mostly in the range of 42@45c a lb f.o.b. Midwest with indications of some supply available below that level. Trading was slow with little uncovered business for 2011-12 and limited supply left to sell, although traders noted “there was no shortage of sugar.” Trading for next year also remained slow, although some sales were indicated between 39c and 41c a lb f.o.b. Midwest, slightly below the prior week’s range. Some increased buyer interest in adding or completing 2012-13 coverage was noted since current prices were below budgeted levels in some cases. Shipping delays from one cane refinery continued due to mechanical issues. FBN Edible Oils Bookings of edible oils expanded last week. A softer tone in pricing was evident in most ingredients. Soybean oil prices declined. Soybean oil futures prices dropped in sympathy with the rest of the soy complex, which plunged in response to scattered rain across parts of the Midwest and forecasts calling for more and to profit-taking amid ideas the market may have been overbought. The cash basis on soybean oil firmed but provided only a partial offset to the impact of lower soybean oil futures. The drought expanded, and soybean crop condition ratings continued to deteriorate. At the same time, the market’s view was there still was time for rain to rescue the crop from the fate that seemed to be in store for the nation’s corn. Soybean oil users took advantage of the latest dip in soybean oil prices to extend contract balances through September. Users refrained from taking significant additional coverage into the fourth quarter. Those users covering only basis concentrated on October-December. The U.S.D.A. indicated net export sales of U.S. soybean oil during the week ended July 19 totaled 7,200 tonnes. The premium asked for refined canola oil, Midwest, relative to soybean oil futures widened to 4c a lb with the harvest of an expected record Canadian canola crop still weeks away. Palm oil prices followed the soybean oil market lower. Many palm oil users already booked their needs for the baking season. Sunflowerseed oil prices moved lower, but peanut oil prices held firm amid tight supplies. 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 July 27 July 20 July 13 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet July 27 Year ago Midwest beet 42.00 @ 45.00 — — 57.00 23.375 27.875 net 173/8@ 213/8 153/8@ 193/8 33.85@37.85 26.625 East Pacific beet 42.00 @ 45.00 — — 57.00 Midwest 24.925 29.425 net 32.85@36.85 28.175 Midwest Cane* 42.00 @ 45.00 — — 59.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 25.125 29.625 net *Spot raw plus 7% plus 10.25c 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 August-September October-December January-March April-June July-September — Change from — July 27 July 20 July 13 28.90 -.50 +.05 28.90 -.50 +.05 29.35 -.05 +.55 29.00 +.20 +.35 29.05 +.25 +.40 28.95 +.20 +.25 Year ago 40.00 40.00 40.00 40.05 40.00 39.60 Chicago soybean oil futures Bulk in tank cars, cents per lb July 27 — Change from — Delivery close July 20 July 13 August 52.04 -2.32 -1.66 September 52.23 -2.33 -1.68 October 52.42 -2.34 -1.69 December 52.81 -2.37 -1.73 January 53.07 -2.30 -1.77 March 53.26 -2.28 -1.84 Year ago 55.65 55.80 56.00 56.43 56.69 56.99 Edible oils Bulk, cents per lb — Change from — Year July 27 July 20 July 13 ago Soybean oil, Decatur 50.75 Loose lard, Chicago 51.25 Edible tallow, Chicago 52.00 Cottonseed oil, Miss. PBSY 52.50 Palm oil, ports 49.50 Palm kernel oil, ports 51.75 Coconut oil 53.00 Peanut oil, Southeast 110.00 Corn oil, Decatur 57.00 Sunflowerseed oil, Midwest 75.00 Canola oil, Midwest 56.00 -1.75 -2.75 +.75 -2.25 -.50 -2.25 — — -.25 -4.00 -2.00 -1.50 -2.25 +.25 -1.50 -.75 -.75 — — +.50 -4.00 -2.00 54.50 64.25 62.25 54.50 56.75 68.00 85.00 94.00 68.25 95.00 60.50 Spot soybean oil Decatur, Ill., bulk cents per lb 61.00 55.00 49.00 43.00 37.00 31.00 J O J Previous Year Crude soybean oil Bulk in tank cars, cents per lb Delivery Decatur, Ill. July 50.54 @50.79 August 50.54 @50.79 September 50.73 @50.98 October 51.17 @51.42 November 51.37 @51.62 December 51.56 @51.81 January 51.82 @52.07 Western points 49.79 @50.04 49.79 @50.04 49.98 @50.23 50.42 @50.67 50.62 @50.87 50.81 @51.06 51.07 @51.32 A Current Year July 31, 2012 FOODBUSINESS NEWS ® 51

Table of Contents for the Digital Edition of Food Business News - July 31, 2012

Food Business News - July 31, 2012
Slowing global economy pressures McDonald’s net
Big changes may be looming for Dole Food Co.
Drought effects go well beyond corn, soybean crops
Table of Contents
Web Contents
Editorial - Global food parallels oil refining
Investments help drive earnings gain at Hershey
Prepared foods market to reach $32.45 billion in 2012
PepsiCo earnings fall on restructuring costs
Private investment group to buy Peet’s Coffee for $1 billion
Sales of Fairtrade-certified products grow 12%
Annie’s earnings climb 18% in first quarter
Food and beverage C.P.I. up 0.1% in June
Nestle Health Science acquires stake in medical foods company
Starbucks breaks ground on $172 million facility
Cal-Maine to buy egg production assets
Emmi Roth expanding in Wisconsin
B&G profit rises behind Culver Specialty business
Paramount Citrus acquires Healds Valley Farms
Washington - Government takes steps to aid drought-stricken farmers and ranchers
Ingredion: More than a catchy name
Ingredient Innovations - The next step in sodium reduction
Health and Wellness - Trans fats in review
Industry Images - Images from the I.F.T.
New Food Products
Supplier Innovations and News
Ingredient Market Trends
Ingredient Markets
Ad Index
Food Business in the News

Food Business News - July 31, 2012