Food Business News - February 12, 2013 - 46

Ingredient Markets
Market commentary for one-week period ended February 8, 2013

Sweeteners
Sugar markets were quiet last week with
the U.S. Department of Agriculture’s World
Agricultural Supply and Demand Estimates
released Feb. 8 and the International
Sweetener Colloquium running Feb. 10-13.
Prices were mostly unchanged, but a weak
tone persisted.
Midwest beet sugar prices for 2012-13
held at 29@31c a lb f.o.b. with most buying
interest at 29@30c for nearby. West coast
and Northeast sugar prices also were
unchanged at around 31c a lb with offers
nearer 35c. Pricing for 2014 was said to be
in the “upper 20s to around 30c a lb” f.o.b.
Midwest. Trading was lighter last week
than a week earlier for both years.
It’s common for activity to be slow
directly before the colloquium, where
traders often initiate and/or conclude new
business while taking in the sessions.
Mexican sugar recently was offered
at 28c a lb f.o.b. at the Texas border, and
was available around 32c delivered farther
inland. There did not appear to be a rush of
Mexican offers despite efforts by the cane
growers union there to increase exports
and force domestic prices higher.
U.S. corn sweetener markets were quiet
as contracting for 2013 was completed.
In its February WASDE, the U.S.D.A.
projected the U.S. sugar carryover on Oct.
1, 2013, at 2,267,000 short tons, raw value,
up 3% from the January projection and
up 14% from 1,985,000 tons in 2012. The

Beet and cane sugar

ending stocks-to-use ratio for 2012-13 was
projected at 19.3%, up from 18.7% projected
in January and above 17.2% estimated for
2011-12. U.S. beet sugar production for 201213 was forecast at 5,300,000 tons, up 2% from
January and up 8% from 2011-12. U.S. cane
sugar production was projected at 3,920,000
tons, up 50,000 tons from January and up
9% from a year earlier. Total sugar output
was forecast at 9,220,000 tons, up 2% from
January and up 9% from 2011-12.
Projected 2012-13 sugar imports were
estimated at 2,827,000 tons, down 85,000
tons from January and down 22% from
2011-12. The reduction was in tariff rate
quota imports, forecast at 1,204,000 tons
in 2012-13. Imports of sugar from Mexico
in 2012-13 were unchanged from January
at 1,388,000 tons but up 30% from last year.
Total U.S. sugar supply in 2012-13 was
projected at 14,032,000 tons, up 65,000 tons
from January and up 4% from 2011-12.
All projected 2012-13 sugar use numbers
were unchanged from January. Total
domestic deliveries were projected at
11,590,000 tons, up 3% from 2011-12.
The U.S.D.A. did not revise any 2012-13
supply-and-use numbers for Mexico. FBN

Edible Oils
Bookings of edible oils expanded last
week. Price changes were mixed.
Soybean oil prices declined. Soybean
oil futures prices dropped. At the same
time, cash premiums on soybean oil were

firm, reflecting ideas supplies will tighten
in the months ahead as demand from the
biodiesel sector expands.
Declining soybean oil prices triggered
some coverage when buyers’ price targets
were hit. The activity ensured contract
balances of most buyers remained extended
at least 45 days.
The U.S.D.A. on Feb. 8 forecast the U.S.
carryover of soybean oil on Oct. 1, 2013, at
1,665 million lbs, up 125 million lbs from the
January outlook but down 31% from 2,540
million lbs in 2012. The U.S.D.A. raised its
soybean oil export forecast in 2012-13 to 2,300
million lbs, up 150 million lbs from January
and up 57% from 1,464 million lbs in 2011-12.
The U.S.D.A. forecast the Brazilian
soybean crop at a record 83.5 million
tonnes, up 1 million tonnes from the
January outlook. The Argentine crop
was forecast at 53 million tonnes, down 1
million from January but up 32% from 40.1
million tonnes in 2011-12.
Palm oil prices moved up as the market
anticipated an expansion in export demand
from biodiesel manufacturers in China and
Europe.
The premium asked for refined canola
oil compared with soybean oil futures
prices widened to 7¼c. Tightening supply
of canola seed because of good export
demand and a smaller-than-expected 2012
Canadian crop provided support.
Peanut oil prices declined in response
to the recent release of government-held
peanut stocks. FBN

Sweeteners
Delivered basis, cents per lb
HFCS spot price1

f.o.b. plant, cents per lb

HFCS list price2
Regular
— Change from — Year
corn
Feb. 8
Feb. 1 Jan. 25 ago
Feb. 8
Year ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Midwest beet 29.00 @ 31.00
—
—
51.00
3
3
3
3
Midwest
20 /8@ 23 /8 17 /8@ 21 /8
25.875
30.375 net
34.85@37.85
29.125 East
Paciﬁc beet
31.00 @ 35.00
—
—
53.00
Northeast 21¾@ 24¾ 18¾@ 22¾
27.375
31.875 net
33.85@36.85
30.625 Midwest
Cane*
31.00 @ 35.50
—
—
52.00
Southeast 217/8@ 247/8 187/8@ 227/8
27.625
32.125 net
*Spot raw plus 7% plus 8.65 with 2% cash discount.
36.85@39.85
30.875 West
Southwest 21½@ 24½ 18½@ 22½
27.125
31.625 net
30.375
3
3
3
3
Raw cane
West
22 /8@ 25 /8 19 /8@ 23 /8
27.875
32.375 net
31.125
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
February-March
April-June
July-September
October-December
January-March

Feb. 8
22.00
20.65
20.65
21.60
22.05
22.95

— Change from —
Feb. 1 Jan. 25
+.50
-.20
-.85
-1.55
-1.10
-.65
-.70
-.80
-1.00
-.90
-.70
-.75

Year
ago
33.75
33.75
33.75
34.00
34.25
33.05

Spot soybean oil
Decatur, Ill., bulk cents per lb
60.00
54.00
48.00
42.00
F

Previous Year

FOODBUSINESS NEWS

Current Year

Chicago soybean oil futures

Edible oils

Bulk in tank cars, cents per lb
Feb. 8
— Change from —
Delivery
close
Feb. 1
Jan. 25
March
51.43
-1.56
-.67
May
51.85
-1.56
-.63
July
52.14
-1.56
-.59
August
52.10
-1.57
-.50
September 51.84
-1.52
-.42
October
51.30
-1.50
-.33

Bulk, cents per lb
Year
ago
52.53
52.92
53.31
53.41
53.53
53.59

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
February
49.68 @49.93
March
49.68 @49.93
April
49.89 @50.14
May
50.10 @50.35
June
50.25 @50.50
July
50.89 @51.14
August
50.85 @51.10

Western points
48.93 @49.18
48.93 @49.18
49.14 @49.69
49.35 @49.60
49.50 @49.75
50.14 @50.69
50.10 @50.35

Feb. 8
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

— Change from — Year
Feb. 1 Jan. 25 ago

50.00
48.50

-1.50
-1.50

—
-2.75

51.75
48.75

41.25

-2.00

-4.75

50.50

51.50
42.50

-1.75
+.25

-.75
+.75

54.25
50.00

45.50
41.50

—
+1.00

+1.50 52.25
+2.50 69.00

90.00
53.25

-3.00
+.50

-7.00
+.75

96.00
56.00

65.00
58.75

—
-1.25

—
—

88.00
56.75

February 12, 2013

Food Business News - February 12, 2013

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