Food Business News - June 17, 2014 - (Page 98)

Ingredient Markets Market commentary for one-week period ended June 13, 2014 Sweeteners Cash sugar prices were unchanged last week in slow trading. The U.S. Department of Agriculture issued its World Agricultural Supply and Demand Estimates report June 11 with surprising increases forecast in U.S. imports of sugar from Mexico. And the U.S. corn sweetener market saw some raw midyear fireworks. Bulk refined beet sugar offers were unchanged at 37c a lb f.o.b. Midwest, and bulk cane offers held at 37c and 38c a lb f.o.b. plants in the Southeast, both for spot through Sept. 30, 2015. One trader said he sensed certain beet processors were willing to move a bit from offer levels, but others, and most processors, indicated they were holding firm at 18-month-high prices. Buyers continued to resist the offers, which were up about 30% since the end of March. Most activity was for 2014, and any users needing nearby sugar likely will have to "pay up" until there is some news in the U.S. sugar producers' trade case against Mexico. After a late start to planting, sugar beet emergence was ahead of the average pace in several states. Assuming normal weather for the rest of the growing season, beet processors appeared "comfortable" with their crops. Louisiana sugar cane ratings remained below year-ago levels but improved slightly from a week earlier. The U.S.D.A. on June 11 projected the U.S. sugar carryover on Oct. 1, 2015, at 1,910,000 short tons, raw value, up 74% Beet and cane sugar - Change from - June 13 June 6 May 30 Midwest beet 35.00 @ 37.00 - +1.00 Pacific beet# 38.00 @ 40.00 - +2.00 Cane* 36.00 @ 38.00 - +1.00 *Spot raw plus 7% plus 7c with 2% cash discount. Raw cane Delivered refiner, cents per lb Year ago 19.35 19.35 19.65 20.30 20.50 20.80 Decatur, Ill., bulk cents per lb 60.00 55.00 50.00 45.00 40.00 35.00 30.00 D M Previous Year FOODBUSINESS NEWS Current Year ® Delivered basis, cents per lb HFCS spot price1 Year ago 26.50 27.50 Midwest 27.50 Northeast Southeast Southwest West Spot soybean oil 98 Bookings of edible oils were steady last week. A softer tone was evident in the pricing of most ingredients until Friday, when soybean oil futures prices spiked. Soybean oil prices were raised. Soybean oil futures prices traded lower until Friday. Gains posted that day pulled prices higher June 13 16⅜@ 18⅜ 17¾@ 19¾ 17⅞@ 19⅞ 17½@ 19½ 18⅜@ 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 31.00@36.00 25.250 East 23.500 27.750 net 27.500 Midwest 30.00@35.00 23.000 27.500 net 34.00@39.00 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 - Contract June 13 June 6 May 30 Nearby 25.45 +.45 -.15 July-September 25.55 +.40 -.05 October-December 25.95 +.30 +.20 January-March 26.10 +.10 -.05 April-June 26.00 +.10 -.10 July-September 26.05 +.10 - S Edible Oils for the week. The cash basis on soybean oil remained firm amid expectations for limited crush for the rest of the crop year and increasing demand from the biodiesel sector. Most soybean oil users continued to book what supply was required to keep contract balances extended 45 to 60 days. Some food processors were covered through the third quarter. Basis coverage for the third quarter was estimated to be more than 80%, so the current strong cash basis didn't affect most users who covered basis earlier. The U.S. Department of Agriculture on June 11 forecast the soybean oil carryover on Oct. 1, 2014, at 1,625 million lbs, up 75 million lbs from the May projection but down 5% from 1,705 million lbs in 2013. The U.S.D.A. forecast the 2015 carryover at 1,795 million lbs, up 75 million lbs from the May outlook and up 10% from 2014. The U.S.D.A. indicated net export sales of soybean oil for 2013-14 aggregated 71,800 tonnes in the week ended June 5, up noticeably from both the previous week and the prior four-week average. Palm oil prices declined both in reaction to the weaker soybean oil market and to a seasonal expansion of palm oil under way in Malaysia and Indonesia. U.S. palm oil users were expected to begin covering needs for the fall soon. Cottonseed oil prices edged lower. Several users earlier switched to corn oil or other alternative oils, which eased upward pressure on cottonseed oil. FBN Sweeteners f.o.b. plant, cents per lb J from its May projection and up 3% from an upwardly revised 1,857,000 tonnes forecast for 2014. Nearly all of the increased supply was from shipments from Mexico, with this year's imports from Mexico raised 8% from May and next year's raised 49%. Some traders discounted the increases in light of the Mexican trade case. The 2014-15 ending stocks-to-use ratio shot from 9.1% in May to 15.8% in June, and the 2013-14 ratio from 12.9% in May to 15% this month, both now near the U.S.D.A. target of 15% seen as the level needed for adequate sugar supplies. Supplies of dextrose, crystalline fructose and other dry corn sweetener products have become tight to unavailable. Prices have shot higher for material that can be found. Midwest dextrose prices that were in the upper-20s now are in the mid-30s, one trader said. Sources credited production issues at one corn refiner, oversold positions of some refiners and increased demand, possibly related to the sudden rise in sugar prices, as reasons for tightening supplies. The only alternative in most cases was sugar. FBN Chicago soybean oil futures Edible oils Bulk in tank cars, cents per lb June 13 - Change from - Delivery close June 6 May 30 July 39.69 +.68 +1.19 August 39.78 +.64 +1.17 September 39.76 +.51 +1.08 October 39.58 +.37 +.87 December 39.66 +.31 +.76 January 39.81 +.28 +.74 Bulk, cents per lb Year ago 48.48 48.45 48.24 47.86 47.62 47.57 Crude soybean oil Bulk in tank cars, cents per lb Delivery Decatur, Ill. June 40.94 @41.44 July 40.94 @41.44 August 41.03 @41.53 September 41.01 @41.51 October 38.83 @39.08 November 38.87 @39.12 December 38.91 @39.16 Western points 40.44 @40.69 40.44 @40.69 40.53 @40.78 40.51 @40.76 38.08 @38.33 38.12 @38.37 38.16 @38.41 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 June 13 June 6 May 30 ago 41.50 50.50 +.75 -7.00 +1.75 48.75 -6.50 48.75 43.00 -4.00 -4.00 49.00 81.50 40.00 -6.00 -.50 -7.50 -1.50 48.75 41.50 45.75 65.75 -1.25 -.50 -2.00 - 47.25 41.50 58.00 41.25 - -.25 +1.00 82.00 -.50 43.00 59.00 45.75 - - - +.75 64.00 57.50 June 17, 2014

Table of Contents for the Digital Edition of Food Business News - June 17, 2014

Food Business News - June 17, 2014
Tyson building a prepared foods powerhouse
Sodium reduction: Aiming at the target
Mid-year markets spotlight
Web Contents
Editorial - Preventing food fraud must be a priority
Peanut butter innovaton propels Smucker
Pinnacle opens pilot plant at Rutgers
Consumer interest in protein remains high
Trashing trillions of calories
Health science at the center of Nestle’s strategy
Nestle sees emerging markets as an e-commerce opportunity
McDonald’s U.S. sales still slipping
Innovation popping at Diamond Foods
Emerging natural and organic food and beverage trends
B&G Foods goes clubbing
C-suite focus shifting toward greater effi ciencies
Krispy Kreme looks to create buzz with licensed coff ee
Private label, sustainability shaping Hain Celestial’s strategy
Quality Egg executives plead guilty to selling adulterated products
Redefining food allergens
Have your cake and quinoa, too
Three snack makers to watch
Flavor mining
Ancient grains for modern trends
Ancient grains in America
All systems go on sustainability strategies
Targeting sodium reduction
General Mills launches Cheerios Protein
Wonka introduces Peel-a-Pops
Ready Pac expands on-the-go meals
Pacifi c Foods adds to hummus offerings
Big chicken fi llet sandwiches debut
Breyers off ers gluten-free ice cream
oCrunch and Kellogg’s partner to create cereal bowl
Stoneridge Orchards launches new dried whole fruit products
GoOrganic debuts fruit chews
popchips rolls out veggie chip line
On the Border debuts smart menu selections
Annie’s announces snack and mini meal kits
Gold’n Plump upgrades frozen chicken patties
Ingredient Market Trends - U.S.D.A. raises U.S. and world wheat ending stocks forecasts
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - June 17, 2014