Food Business News - February 10, 2015 - (Page 48)

INGREDIENTMARKETTRENDS In The Spotlight At A Glance Soybean oil market pulled lower, then higher oybean oil futures during the past couple of weeks were roiled by two events that pulled prices in opposite directions. In the last week of January, soybean oil futures prices tumbled on ideas Argentine biodiesel may be imported into the United States. Those concerns arose in the wake of news the Environmental Protection Agency would allow Argentine biodiesel to qualify under the Renewable Fuel Standard, a move that may set the stage for imports from Argentina. Before the market was able to take a breath S Biodiesel share of soybean oil usage 24.4% 24.6% 13.7% 8.7% 15.3% 11.2% 13.5% 2.4% 8.1% 0.7% 22.9% in per cent 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 Source: U.S.D.A. and Energy Information Administration after that surprise, a spike in the palm oil market helped pull soybean oil futures prices higher again last week. The surge in palm oil futures prices was prompted by indications the Indonesian government may adopt legislation aimed at raising domestic biodiesel subsidies by 2.7 times, to 4,000 rupiah (32c) per liter from 1,500 rupiah. Palm oil futures prices on the Bursa Malaysia advanced 5% in response, the widest daily advance since October 2010. Palm oil is the world's most traded edible oil, and a tightening in supply in the world's largest producing country may firm edible oil prices worldwide. Looming behind these recent developments, and a principal cause, was the collapse in world crude oil prices from well over $100 per barrel in June to around $45 at the end of January. Oil prices since have managed only a feeble bounce. Plunging crude oil prices jeopardized outlets and margins of biofuel producers across the world even while pressuring prices of feedstocks used to produce biofuel such as corn and sugar cane for ethanol and soybean oil and palm oil for biodiesel, among others. Growth in the biofuels industry has depended largely on high oil prices and government subsidies. Indonesia's move to raise its subsidy was an attempt to sustain its biofuel producers and boost palm oil prices even as low crude oil prices continued to exert pressure. Biodiesel manufacture has become a major outlet for U.S. soybean oil. The U.S. Department of Agriculture estimated soybean oil used in the manufacture of biodiesel accounted for more than 24% of total soybean oil disappearance in 2013-14. Ten years earlier, biodiesel's share of U.S. soybean oil usage was less than 1%. FBN Per capita meat consumption in lbs 85.6 52.7 47.1 0.9 15.8 Turkey Pork Lamb Chicken Beef Source: U.S. Department of Agriculture Ingredient Indexes di d Vanilla Ice Cream Milk Chocolate Bar Commodity Trends U.S.D.A. weekly shell egg index in cents per dozen, for spot delivery in 14 days National f.o.b. graded loose large weekly weighted average 225 200 175 150 125 100 75 335 285 235 2015 2014 California delivered graded loose large weekly weighted average 2015 2014 185 Jan. March May July Sept. Nov. 135 85 Jan. March May July Sept. Nov. Source: U.S. Department of Agriculture 48 FOODBUSINESS NEWS ® February 10, 2015

Table of Contents for the Digital Edition of Food Business News - February 10, 2015

Food Business News - February 10, 2015
Hershey continues move into snack categories
Renewed school food fight looming on the horizon
Beverage Business News - Colorful ways to quench a thirst
Table of Contents
Web Contents
Editorial - Oil and currency moves should be seen as threats
McCormick eyes ambitious growth in year ahead
Dunkin’ to debut cold blended beverage platform
Campbell Soup in the midst of reorganizing
The future of shopper marketing
JBS USA plans expansion at Utah beef plant
Large MOM multiples
More tough times ahead for McDonald’s
Inside Wendy’s menu strategy
Chipotle on fire
Diamond acquires stake in potato chip maker
Market Insight - More cattle but beef prices still rising
Health and Wellness - On the cutting edge of digestive health
Ingredient Innovations - Backing up satiety benefits
Company Profile - Tyson Foods flying high
New Food Products
Ingredient Market Trends - Soybean oil market pulled lower, then higher
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

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