Food Business News - January 1, 2013 - 38

Ingredient Markets
Market commentary for one-week period ended December 28, 2012

Sweeteners
Sugar and corn sweetener markets were quiet last week with many traders out of their offices until after New Year’s day. Midwest beet sugar held at around 31@32c a lb f.o.b., unchanged from a week earlier and down 21c, or 40%, from a year ago. Although trading was light, brokers indicated some sales were generated when prices fell to 31c a lb a week earlier. There were few large chunks of business remaining for 2013 with most buyers having previously covered most of their needs and most sellers well sold, with the exception of more-than-expected sugar from the large 2012 beet crop, which pressured prices in recent weeks. West coast cane and beet sugar prices along with Northeast and southern cane sugar prices also were unchanged in minimal activity last week. Some in the trade expressed concern about a potential strike over the weekend by longshoremen at East coast and Gulf ports. Refiners indicated adequate precautionary steps had been taken to avoid any disruption to the market. At the week’s end, it was announced the strike was averted. As in sugar, there was little action in corn sweetener markets last week, which likely pushed any unfinished business into 2013. Corn refiners had hoped to have contracting completed by the end of the year, and most of the business appeared to be completed. But traders indicated any unfinished contracts entering Christmas

week likely were still unsigned as traders exited for the holiday break. Most contracting for 2013 was completed at 2@3c a lb above 2012 levels, with the exception of dextrose, which was nearer flat due to its premium over sugar in some regions, according to traders. Prices of highfructose corn syrup and regular corn syrup ranged from 1½@4c above 2012 contracted prices, but mostly fell in the middle of that range. Some business wasn’t finalized as buyers hoped to get deals at hikes less than 2c above 2012 levels, noting extremely weak sugar prices near or below some types of corn sweeteners in some regions, and noting falling corn futures prices that appeared likely to end the year only about 10% above year-earlier price levels rather than 15% or more above a few weeks ago. At the end of 2011, buyers who held out were rewarded with contracted levels below those secured earlier in the negotiating season, but the overall market also was considerably different this year from last. The sugar cane harvest in Mexico advanced with sugar supplies there also ample, as was the case in the United States and most of the world. FBN

Edible Oils
Bookings of edible oils were light last week. Price changes were mixed but not extreme in either direction. Soybean oil prices advanced. Soybean oil futures prices edged lower until Friday,

when prices bounced to end the week slightly higher. The cash basis on soybean oil firmed, but any strengthening was constrained by relatively heavy crush in response to strong soybean meal demand. Most domestic soybean oil users filled gaps in January coverage before leaving offices for the holidays. Basis coverage for the first quarter of 2013 was nearly complete. April-June 2013 soybean basis coverage was estimated at 50% to 60%. Net export sales of U.S. soybean oil during the week ended Dec. 20 totaled 17,200 tonnes. India and China were the principal buyers with India buying 20,000 tonnes and China buying 13,000 tonnes. Purchases partly were offset by cancelations totaling 20,000 tonnes. There was much discussion between buyers and sellers over what impacts going over the “fiscal cliff” may pose to markets. There also were exchanges of views about if or when the biodiesel credit might be reactivated. Palm oil prices firmed slightly from recent dismal levels. Heavy rainstorms interrupted production and perhaps damaged some trees in Malaysia. The storms also resulted in some logistical problems. Palm oil continued to trade at wide discounts to soybean oil, though. The premium asked for refined canola oil in the Midwest compared with soybean oil futures prices narrowed slightly to 7¼c a lb. The spread still was viewed as unsustainably wide by some market participants. 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. 28 Dec. 21 Dec. 14 ago Dec. 28 Year ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Midwest beet 31.00 @ 32.00 — -1.00 52.00 3 3 3 3 Midwest 17 /8@ 21 /8 15 /8@ 19 /8 23.375 27.875 net 33.85@37.85 26.625 East Paciﬁc beet 33.00 @ 37.00 — -1.00 52.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 24.925 29.425 net 32.85@36.85 28.175 Midwest Cane* 33.00 @ 38.00 — -1.00 53.00 Southeast 187/8@ 227/8 167/8@ 207/8 25.125 29.625 net *Spot raw plus 7% plus 8.6 with 2% cash discount. 35.85@39.85 28.375 West Southwest 18½@ 22½ 16½@ 20½ 24.625 29.125 net 27.875 3 3 3 3 Raw cane West 19 /8@ 23 /8 17 /8@ 21 /8 25.325 29.825 net 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 January-March April-June July-September October-December January-March — Change from — Dec. 28 Dec. 21 Dec. 14 22.25 +.05 +.10 22.25 +.05 +.10 22.50 +.15 -.40 22.95 +.15 — 23.40 +.15 -.35 23.75 — +.35 Year ago 36.25 36.25 36.25 36.25 36.00 34.15

Chicago soybean oil futures
Bulk in tank cars, cents per lb Dec. 28 — Change from — Delivery close Dec. 21 Dec. 14 January 48.94 +.23 -1.05 March 49.44 +.32 -.98 May 49.91 +.31 -.98 July 50.34 -.16 -.96 August 50.42 +.31 -.91 September 50.43 +.32 -.78 Year ago 52.09 52.42 52.78 53.05 53.10 53.11

Edible oils
Bulk, cents per lb — Change from — Year Dec. 28 Dec. 21 Dec. 14 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 46.50 52.50 42.25 49.50 40.25 44.75 38.50 98.25 51.75 66.00 56.25 +.50 -.75 +.25 +.25 +1.25 +3.00 — +.25 -.25 — — -.75 -.75 51.75 49.00

Spot soybean oil
Decatur, Ill., bulk cents per lb
60.00 54.00 48.00 42.00 D M J
Previous Year

+1.75 50.75 -.75 +.75 53.50 50.75

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. December 45.94 @46.44 January 45.94 @46.44 February 46.19 @46.69 March 46.44 @46.94 April 47.18 @47.68 May 47.41 @47.91 June 47.63 @48.13 Western points 45.44 @45.94 45.44 @45.94 45.69 @46.19 45.94 @46.44 46.68 @47.18 46.91 @47.41 47.13 @47.63

+1.75 51.50 — 64.00 -.75 -.25 -3.00 -.50 95.25 53.75 91.00 57.00

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