Food Business News - February 10, 2015 - (Page 49)

Market commentary for one-week period ended February 6, 2015 Sweeteners The domestic sugar market was mostly routine last week, but there were new sales from Mexico, as expected, after the U.S. Department of Commerce on Jan. 26 said there would be no retroactive duties on Mexican sugar exported to the United States while the U.S. International Trade Commission reviews the suspension agreements signed Dec. 19 by the D.O.C. and Mexico. It was the first time in months that offers from Mexico resulted in new sales, although not all U.S. buyers seeking Mexican sugar were involved. The I.T.C. has 75 days from when requests for review of the suspension agreements were filed Jan. 8, which leaves the "no duty" window open until late March, barring an earlier decision. Trade sources indicated parties involved in the review were in active discussions. At least some of the new business with Mexico appeared to involve U.S. companies that had standing contracts but had drawn little if any supply since anti-dumping and countervailing duties in excess of 50% were imposed last fall as the result of petitions filed by U.S. sugar producers on March 28, 2014. Any new sugar exports to the United States from Mexico were applied against new export licenses required in the suspension agreements and had to meet requirements for polarity, timing and tracking among others outlined in the agreements. Sources indicated they received notice at midweek that Mexico had sent out rules for export licensing. Trade sources indicated bags of Mexican sugar were delivered into Texas at around 37½c a lb, which equated to about 31@32c a lb f.o.b. mills in Mexico, well above the 26c-a-lb minimum required in the suspension agreements. Domestic U.S. bulk refined beet and cane sugar were priced mostly at 36@37c a lb f.o.b. for nearby shipment, but pricing for the second half of the year appeared to be more in the 34@36c-a-lb range. Most activity was for nearby, and volume was light. Interest in longer-term business was limited as both buyers and sellers remained cautious, not knowing what the final outcome of the I.T.C. review will be. U.S. processors said sugar users' draw on contracted material was unusually strong for the time of year, which they attributed to the lack of sugar coming from Mexico in recent months. Domestic shipments were active. Corn sweetener markets were quiet with the majority of business contracted for 2015 in late November and early December. Supplies of liquid products were expected to be snug in 2015 due to reduced capacity with the previously announced closing of Cargill's Memphis, Tenn., corn milling plant at the end of January. Supplies of dry products, including dextrose, were forecast to be even tighter due to limited production capacity and ongoing strong demand. FBN Beet and cane sugar f.o.b. plant, cents per lb - Change from - Feb. 6 Jan. 30 Jan. 23 Midwest beet 36.00 @ 37.00 - - Pacific beet 40.00 @ 42.00 - - Cane* 36.00 @ 37.00 - - Year ago 26.00 27.00 27.00 *Spot raw plus 7% plus 9c with 2% cash discount. Raw cane Delivered refiner, cents per lb Contract Nearby January-March April-June July-September October-December January-March - Change from - Feb. 6 Jan. 30 Jan. 23 24.55 -.45 -.70 24.55 -.45 -.70 24.85 -.20 -.40 25.05 -.05 -.10 25.30 +.25 -.10 25.10 - -.10 Year ago 21.10 21.10 21.25 21.85 22.30 22.75 I.C.E. No. 11 raw sugar futures cents per lb 20 18 16 14 12 F M A N Sweeteners Delivered basis, cents per lb HFCS spot price1 Midwest Northeast Southeast Southwest West Feb. 6 18⅞@ 19⅞ 20¼@ 21¼ 20⅜@ 21⅜ 20@ 21 20⅞@ 22⅞ HFCS list price2 42% HFCS wet Year ago 23.250 15⅜@ 18⅜ 25.500 16¾@ 19¾ 25.000 16⅞@ 19⅞ 24.500 16½@ 19½ 25.750 17⅜@ 21⅜ 55% HFCS wet 27.250 net 29.750 net 29.500 net 29.000 net 30.250 net Regular corn syrup3 27.250 29.500 29.500 30.500 31.750 Dextrose East 37.00@39.00 Midwest 36.00@38.00 West 39.00@41.00 Delicious Honey 100% Pure & Natural We offer Pails, Drums, Totes and Tanker Trucks. Our 24/7 manufacturing facility is strategically located in the Midwest. We are FSSC 22000 and Kosher Certifed. 888-SUGAR-99 * Sweetenersupply.com February 10, 2015 FOODBUSINESS NEWS ® 49 http://www.Sweetenersupply.com

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

Food Business News - February 10, 2015

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