Food Business News - March 24, 2015 - (Page 61)

Market commentary for one-week period ended March 20, 2015 Sweeteners Sugar markets were quiet most of last week awaiting the U.S. International Trade Commission's decision Thursday on the challenge to the suspension agreements between the United States and Mexico. The I.T.C. voted 6-0 to maintain the agreements signed by the U.S. Department of Commerce and Mexico on Dec. 19, 2014, that suspended antidumping and countervailing duties totaling about 56% on sugar imports from Mexico and put in place quotas, minimum pricing, export licensing and other requirements. Although not completely resolved, the vote removed a great amount of uncertainty that has hung over the market and slowed trade for the better part of a year Had the I.T.G. vote been to negate the agreement, antidumping and counter railing duties would have been reinstated, likely keeping sugar shipments at a minimum. The suspension agreements were the result of petitions filed by a group of U.S. sugar producers on March 28, 2014, charging Mexico with dumping subsidized sugar on the U.S. market. U.S. government agencies had consistently found in favor of the U.S sugar producers and last fall imposed antidumping and countervailing duties that were then suspended by the December agreements. Two U.S. cane refiners, Louis Dreyfus Commodities' Imperial Sugar Company and AmCane Sugar L.L.C., challenged the agreements in January and sought the I.T.C. review, claiming the trade pact was harmful to U.S. cane refiners. The refiners also asked the D.O.C. to resume its investigation into the dispute, which was stopped when the suspension agreements were signed. The D.O.C. has not responded to that request. The duties were suspended during the I.T.C. review, and sugar shipments to the United States from Mexico increased in January and February after dropping to a trickle late last year because of the trade rift. Last week's I.T.C. decision was expected to result in a sharp increase in shipments as Mexico seeks to fill the remainder of its allocated quota in the last half of the marketing year that ends Sept. 30, 2015. The U.S. sugar market was mostly quiet, and prices were unchanged with the firmness noted a week earlier persisting. Bulk refined beet sugar was priced at 35c to 36c a lb f.o.b. Midwest, but most selling interest was at 36c due to select major beet refiners being well sold or even sold out for the current year. Cane sugar was priced about 1c a lb above beet sugar. Some expected an influx of exports from Mexico may modestly pressure domestic prices, especially in areas that receive much of the volume - California and Texas. Although the trade had expected the I.T.C. to vote in favor of maintaining the suspension agreements, recent activity for 2016 had been limited due to the uncertainty. With the I.T.C. decision made, domestic activity also should increase for next year. Offers on domestic sugar for 2015-16 and calendar 2016 were mostly at 35c a lb f.o.b. Midwest. Corn sweetener markets were routine and seasonally quiet. FBN Beet and cane sugar f.o.b. plant, cents per lb - Change from - Mar. 20 Mar. 13 Mar. 6 Midwest beet 35.00 @ 36.00 - - Pacific beet 40.00 @ 42.00 - - Cane* 35.00 @ 37.00 - - Year ago 26.50 27.50 28.50 *Spot raw plus 7% plus 8.4c with 2% cash discount. Raw cane Delivered refiner, cents per lb - Change from - Contract Mar. 20 Mar. 13 Mar. 6 Nearby 23.85 -.15 -.35 April-June 23.85 -.15 -.35 July-September 24.20 - -.35 October-December 24.30 +.25 -.45 January-March 24.50 +.35 -.10 April-June 24.50 -.10 -.15 Year ago 21.75 21.75 22.25 22.80 22.95 23.15 I.C.E. No. 11 raw sugar futures cents per lb 20 18 16 14 12 M J S D Sweeteners Delivered basis, cents per lb HFCS spot price1 Midwest Northeast Southeast Southwest West Mar. 20 18⅞@ 19⅞ 20¼@ 21¼ 20⅜@ 21⅜ 20@ 21 20⅞@ 22⅞ HFCS list price2 42% HFCS wet Year ago 23.250 16⅜@ 18⅜ 25.500 17¾@ 19¾ 25.000 17⅞@ 19⅞ 24.500 17½@ 19½ 25.750 18⅜@ 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 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 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 * March 24, 2015 FOODBUSINESS NEWS ® 61

Table of Contents for the Digital Edition of Food Business News - March 24, 2015

Food Business News - March 24, 2015
Inside General Mills’ new approach to innovation
Nestle pursuing nutrition-based treatment for autism
Dairy Business News - Inclusion innovation: More than a chip or a chunk
Table of Contents
Web Contents
Editorial - Flexibility is needed to meet new opportunities
Kind raising the bar with innovation
McDonald’s to unlock power of local regions
Lancaster Colony acquires flatbread maker
SodaStream going after Keurig
Six forces shaping natural, organic product development
Stevia slow to penetrate confectionery market
C-Suite insight: C.P.G. at a crossroads
Kroger’s Simple Truth sales hit $1.2 billion for year
Private equity firm buys American Beverage Co.
Washington - Dietary Guidelines coming into focus
Market Insight - A `normal’ year for U.S. crops?
Health and Wellness - Shining a health halo over protein
Meat industry criticizes D.G.A.C. recommendation
Ingredient Innovations - Number of proposed pho alternatives widens
Still no timetable for final GRAS rule
Company Profile - Mondelez gaining momentum
New Food Products
Natural Products Expo West/Engredea
Ingredient Market Trends - Millers forecast soft red winter wheat crop at 381 million bus
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - March 24, 2015