Food Business News - October 9, 2012 - (Page 46)

Ingredient Markets Market commentary for one-week period ended October 5, 2012 Sweeteners Sweetener markets remained quiet last week as processors and buyers were wide apart on pricing ideas, largely the result of well sold sellers and well covered users for 2012-13, which began Oct. 1. The corn sweetener market remained in a holding pattern as corn refiners sought a clearer picture of the size and quality of the 2012 U.S. corn crop before negotiating on 2013 contracts. Bulk refined sugar pricing ranged from 37c a lb to 44c f.o.b. Midwest. Buyers maintained the traded market was mostly in the upper 30s while sellers offered supply as high as 44c and indicated the market was at least 40c. The levels indicated by the buyers may have included Mexican supply. Trading was light. West coast prices were said to be mostly in the lower 40s with 42c commonly offered, although not greatly traded. Brokers indicated some increased buying interest on ideas prices may be at their bottom with some upside risk. Cane sugar was offered mostly at 44c a lb but with no indications of trading. The sugar beet harvest began in earnest in the Red River Valley, aided by much cooler weather. The U.S. Department of Agriculture said the sugar beet harvest in the four major states was 19% completed as of Sept. 30, up from 15% a week earlier, 11% a year ago and 15% as the 2007-11 average for the date. Harvesting in North Dakota was 20% completed (18% average for the date), Minnesota was 20% (17%), Michigan was 15% (13%) and Idaho was 19% (8%). Rated good to excellent on Sept. 30 was 84% of the crop in North Dakota and 75% of the crop in Minnesota. Up to 10% of the Red River Valley cooperative’s crop still was being considered for “plow under” as production was expected to exceed capacity of the coop’s processing facilities. Louisiana’s sugar cane crop was 3% harvested as of Sept. 30, slightly ahead of 1% as the 2007-11 average, the U.S.D.A. said. The crop was rated 60% good to excellent, unchanged from a week earlier. The sugar cane harvest was about to begin in other states. Activity in the corn sweetener market remained quiet as corn refiners awaited production data from the Oct. 11 U.S.D.A. Crop Production report, and quality data from early processing of new crop corn. The trade still anticipated hikes for 2013 from 2012 contracted levels of around 25%, equal to 4@6c a lb. FBN Edible Oils Bookings of edible oils were uneven last week with some merchandisers pointing to expanding activity in several oils while others suggested activity was limited, at least in soybean oil. Soybean oil prices dropped. Soybean oil futures prices last week tumbled to the lowest levels since mid-June. This encouraged several users to fill gaps in October-December coverage. But most of the business for the quarter was concluded on earlier price breaks, so the response to last week’s buckling in futures prices was not as strong as it otherwise might have been. At the same time, the cash basis on soybean oil advanced with first-quarter basis levels rising to “stay away” levels as refiners considered the longer-term supply/ demand situation in the light of a smallerthan-expected canola crop in Canada. The stronger forward basis tempered booking enthusiasm beyond the end of 2012, although some buyers of branded products for which soybean oil was only a minor ingredient extended contract balances into 2013. Statistics Canada on Oct. 4 estimated the 2012 Canadian canola crop at 13,359,000 tonnes, down 13% from its previous forecast and down 8% from 14,493,000 tonnes in 2011. The unexpected decline in production had the immediate effect of widening the premium to soybean oil futures prices asked for refined canola oil to 6¼c a lb, Midwest points, from 5c previously. Palm oil prices slumped under the weight of heavy production that encountered lackluster demand. Palm oil futures prices in Malaysia hit three-year lows, and palm oil weakness was a drag on other oil markets. Some U.S. palm oil buyers pushed contract balances into 2013. Resisting the price downtrend were sunflowerseed oil and peanut oil. 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 Oct. 5 Sept. 28 Sept. 21 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Oct. 5 Year ago Midwest beet 37.00 @ 42.00 — -1.00 59.00 23.375 27.875 net 173/8@ 213/8 153/8@ 193/8 33.85@37.85 26.625 East Pacific beet 38.00 @ 43.00 — -1.00 59.00 Midwest 24.925 29.425 net 32.85@36.85 28.175 Midwest Cane* 40.00 @ 44.00 — — 59.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 25.125 29.625 net *Spot raw plus 7% plus 12.75 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 October-December January-March April-June July-September October-December — Change from — Oct. 5 Sept. 28 Sept. 21 24.75 -1.13 -.86 24.75 -1.13 -.86 25.25 -.33 +.30 25.60 -.06 +.72 25.75 +.13 +.90 26.25 +.62 -1.50 Year ago 33.00 33.00 37.10 39.25 38.25 36.25 Chicago soybean oil futures Bulk in tank cars, cents per lb Oct. 5 — Change from — Delivery close Sept. 28 Sept. 21 October 50.76 -1.42 -3.69 December 51.19 -1.47 -3.64 January 51.53 -1.47 -3.60 March 51.98 -1.44 -3.51 May 52.28 -1.42 -3.20 July 52.48 -1.40 -2.85 Year ago 49.07 49.32 49.61 49.95 50.17 50.39 Edible oils Bulk, cents per lb — Change from — Year Oct. 5 Sept. 28 Sept. 21 ago Soybean oil, Decatur 50.00 Loose lard, Chicago 49.75 Edible tallow, Chicago 43.75 Cottonseed oil, Miss. PBSY 51.25 Palm oil, ports 41.00 Palm kernel oil, ports 43.75 Coconut oil 45.00 Peanut oil, Southeast 104.00 Corn oil, Decatur 61.50 Sunflowerseed oil, Midwest 75.00 Canola oil, Midwest 57.00 -1.25 -1.50 -.75 -1.50 -2.75 -2.00 -1.00 — -2.25 — -.25 -3.75 -3.25 -3.25 -4.00 -6.00 -5.25 -2.00 — -1.25 — -3.25 50.00 65.25 60.25 50.00 47.75 55.50 62.00 99.00 58.25 93.00 55.00 Spot soybean oil Decatur, Ill., bulk cents per lb 60.00 54.00 48.00 42.00 O J A Previous Year Crude soybean oil Bulk in tank cars, cents per lb Delivery Decatur, Ill. October 49.91 @50.01 November 50.13 @50.23 December 50.34 @50.44 January 50.93 @51.03 February 51.16 @51.26 March 51.38 @51.48 April 51.53 @51.63 Western points 49.26 @49.51 49.48 @49.73 49.69 @49.94 50.28 @50.53 50.51 @50.76 50.73 @50.98 50.88 @51.13 J Current Year 46 FOODBUSINESS NEWS ® October 9, 2012

Table of Contents for the Digital Edition of Food Business News - October 9, 2012

Food Business News - October 9, 2012
Unilever may put Skippy brand up for sale
Fruit prices on the rise
Bio-engineering on the ballot in California
Table of Contents
Web Contents
Editorial - Instant noodles as single food product success
Snyder’s-Lance expands distribution in southwest U.S.
American Sugar buys majority of Belize Sugar Industries
F.A.O. Food Price Index rises in September
Sunland peanut butter recall expands
RAND study shows rapid rise of morbid obesity
Dean puts Morningstar Foods on the trading block
Chiquita Brands names Edward Lonergan as c.e.o.
Smart Balance unveils new name, new structure
Clarkson Grain acquires US Soy
Alpina opens yogurt facility in New York
Chris Solly to c.e.o. of Ehrmann USA
ConAgra to expand frozen meals production
Campbell Soup closing two facilities
Jack Link’s acquiring Nebraska facility
New Kraft seeks to unlock ‘true potential'
Mondelez establishes global ambitions
August Restaurant Performance Index rises
Hershey to source 100% certified cocoa by 2020
Kroger introducing ‘Simple’ brands
Environmental claims to face greater scrutiny
Health and Wellness - Sodium reduction remains a priority
Ingredient Innovations - GRAS for probiotics seen as step toward market acceptance
Studies focus on probiotic benefits
New Food Products
Ingredient Market Trends
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - October 9, 2012