Food Business News - February 11, 2014 - (Page 46)

Ingredient Markets Market commentary for one-week period ended February 7, 2014 Sweeteners Refined sugar prices were steady last week even if the market was unsettled by continued shipping problems from the Upper Midwest. New York world raw sugar futures prices soared about 10% through midweek on short covering prompted by concerns that dry weather in Brazil may reduce the 2014-15 cane crop in the world's largest sugar producer, and on uncertainty about exports from India, the second largest producer. But some of those gains were wiped out by week's end as concern about India eased. U.S. bulk refined sugar prices continued to trade around 26c a lb f.o.b. Midwest for beet and 27c f.o.b. for cane, both unchanged from a week earlier. Prices for refined bagged sugar held at around 30@31c a lb. Shipping problems continued to be the dominant feature of the beet sugar market. As noted in previous columns, poor rail performance due to railroads' focus on moving crude oil exacerbated by frigid temperatures slowed shipments of refined beet sugar from some Upper Midwest processors. The backlog was so severe that refining operations had to be curtailed at some facilities as storage bins were filled. Although the major processor affected noted increased arrivals of empty rail cars last week, outbound shipments continued to lag. As a result, a number of end users were forced to seek sugar on the spot market to keep factories running. Despite the temporary tightness, sellers with sugar Beet and cane sugar - Change from - Feb. 7 Jan. 31 Jan. 24 Midwest beet 26.00 @ 26.50 - - Pacific beet 27.00 @ 31.00 - - Cane* 27.00 @ 31.00 - - *Spot raw plus 7% plus 3.9c with 2% cash discount. Raw cane Delivered refiner, cents per lb Feb. 7 21.10 21.10 21.25 21.85 22.30 22.75 Year ago 22.00 20.65 20.65 21.60 22.05 22.95 60.00 55.00 50.00 45.00 40.00 35.00 30.00 A N Previous Year 46 FOODBUSINESS NEWS Current Year ® Delivered basis, cents per lb HFCS spot price1 Feb. 7 15⅜@ 18⅜ 16¾@ 19¾ 16⅞@ 19⅞ 16½@ 19½ 17⅜@ 21⅜ Year ago 20⅜@ 23⅜ 21¾@ 24¾ 21⅞@ 24⅞ 21½@ 24½ 22⅜@ 25⅜ Prices reflect 2014 refiner offers HFCS list price2 Regular corn syrup3 Dextrose 42% HFCS wet 55% HFCS wet 21.250 25.250 net 30.00@33.00 25.250 East 23.500 27.750 net 27.500 Midwest 29.00@32.00 23.000 27.500 net 33.00@36.00 27.500 West 22.500 27.000 net 28.500 23.750 28.250 net 29.750 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 - Change from - Jan. 31 Jan. 24 +.60 +.75 +.60 +.75 +1.15 +.65 +.50 +.50 +.50 +.60 +.45 +.80 Decatur, Ill., bulk cents per lb M Bookings of bakery shortening were light last week. Prices were mostly higher following notable gains in soybean oil. Soybean oil prices advanced on gains of nearly 1c a lb in nearby soybean oil futures and firmness in the cash soybean oil basis. Soy complex futures advanced last week in anticipation of bullish data in the U.S. Department of Agriculture's Feb. 10 supply-and-demand report, and despite the advancing Brazilian soybean harvest, which is expected to be record large. Soybean oil users actively booked supply needed to keep contract balances extended 45 to 60 days early in the last week of January as futures prices set contract lows. But Year ago 29.00 31.00 Midwest 31.00 Northeast Southeast Southwest West Spot soybean oil F Edible Oils activity since has slowed, with rising prices last week further discouraging bookings. Traders estimated basis coverage was nearly complete through the first quarter and was near 50% for the second quarter. Traders noted the cash soybean oil basis was firming in anticipation of tightening supplies in coming weeks. Soybean oil supplies should remain adequate through March as processors crush to meet strong demand for soybean meal exports. But once South American soybeans and soybean products become available in the second quarter, the U.S. soybean crush is expected to decline as demand for U.S. soybean meal exports diminishes, thus also reducing soybean oil production. Demand for soybean oil from the U.S. biodiesel sector typically increases in the third quarter. The soybean oil share of the value of soybean crush currently was near 30%, well below its typical level of 40% to 45%. Ample canola oil supplies from the record large 2013 Canadian canola crop continued to overhang the edible oils market, even if that pressure has yet to be fully realized due to massive rail logistics problems in Canada. Cottonseed oil prices continued to surge because of the small 2013 cotton crop and difficulty in securing seed to crush. Offers generally were lacking. Palm oil prices mostly followed soybean oil last week, but demand was expected to increase in Asia as businesses reopened after the Lunar New Year. FBN Sweeteners f.o.b. plant, cents per lb Contract Nearby February-March April-June July-September October-December January-March available sold supply at prices mostly steady with the current market. Some brokers and end users sought to source sugar from Mexico to fill supply lines, but they were met with nearly a total lack of offers as the cane harvest in Mexico got off to a slow start and early sugar production was committed to export markets other than the United States. One trader also noted that the price spread between U.S. and Mexican sugar was too narrow to induce exports in either direction, with prices in Mexico above those of the United States in some cases. Sugar cane harvest progressed without incident in Florida with a few rain delays noted a week earlier. FBN Chicago soybean oil futures Edible oils Bulk in tank cars, cents per lb Feb. 7 - Change from - Delivery close Jan. 31 Jan. 24 March 38.56 +.92 +1.02 May 38.88 +.95 +.98 July 39.18 +.93 +.91 August 39.22 +.84 +.83 September 39.15 +.73 +.72 October 38.89 +.51 +.50 Bulk, cents per lb Year ago 51.43 51.85 52.14 52.10 51.84 51.30 Crude soybean oil Bulk in tank cars, cents per lb Delivery Decatur, Ill. February 36.06 @36.31 March 36.06 @36.31 April 36.72 @36.97 May 36.88 @37.13 June 37.03 @37.28 July 38.18 @38.43 August 38.22 @38.47 Western points 35.56 @35.81 35.56 @35.81 36.22 @36.47 36.38 @36.63 36.53 @36.78 37.43 @37.68 37.47 @37.72 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. 7 Jan. 31 Jan. 24 ago 36.00 32.00 +1.25 - +1.50 50.00 - 48.50 34.00 -.50 53.50 41.00 +6.00 +.50 +5.00 51.50 - 42.50 46.00 60.50 -.25 +.25 -.75 45.50 +1.25 41.50 62.00 39.25 - - 57.00 40.50 - +1.00 -1.50 -2.50 - 41.25 90.00 53.25 - 65.00 +1.00 58.75 February 11, 2014

Table of Contents for the Digital Edition of Food Business News - February 11, 2014

Food Business News - February 11, 2014
Post to buy PowerBar from Nestle
Beverage ingredients in the spotlight
Beef prices are red hot
Table of Contents
Web Contents
Editorial - Cause marketing gaining momentum
Green Mountain, Coca-Cola form partnership
McDonald’s is learning less is more
F.D.A. proposes sanitary food transportation rule
Price increase still planned for Chipotle
Inside Tyson Foods’ prepared foods strategy
Beef, chicken drive gains for Tyson
Meat costs will hinder Hillshire in second half
Meijer to build dairy facility in Ohio
Hershey seeks to set new bar in spreads
Washington - Putting the new farm bill in focus
Health and Wellness - Digesting the additional benefits of gut health
Are designer fibers on the horizon?
Ingredient Innovations - Making cereal more satisfying
More satiety strategies
Beverage Business News - Beverage ingredients in the spotlight
New Food Products
Ingredient Market Trends - Weather woes continue to affect markets
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 11, 2014