Food Business News - February 24, 2015 - (Page 65)

Market commentary for one-week period ended February 20, 2015 Sweeteners Sweetener markets were quiet during the holiday-shortened week with the trade still waiting on final resolution to the U.S.-Mexico sugar trade dispute. Prices were unchanged amid the uncertainty. Labor issues at West coast ports delayed unloading of sugar, tightening supplies and providing support to prices already above those of other regions. A meeting with the U.S. International Trade Commission, which is reviewing suspension agreements signed by the U.S. Department of Commerce and Mexico on Dec. 19, 2014, yielded the expected comments from both sides of the issue. The two cane refiners (Louis Dreyfus Commodities' Imperial Sugar Co. and AmCane Sugar L.L.C.) who requested the I.T.C. review reiterated their positions that the agreements favored growers and millers but were harmful to refiners by allowing too much imported refined sugar but not enough raw sugar, which they need to utilize excess refining capacity. Mexican officials said the suspension agreements were less than ideal but would "maintain the delicate balance in trade of sweeteners between Mexico and the United States," according to a Reuters report. The I.T.C. has until March 24 to complete its review. U.S. bulk refined beet sugar still was trading nearby at 35@36c a lb f.o.b. with refined cane sugar said to be mostly at 36c a lb f.o.b. but within a wider price range than beet sugar. Offers for later in 2015 were at the lower end of price ranges, and offers for 2016 were mostly at 35c a lb f.o.b. for both beet and cane. Trade for all time frames was light. While most 2015 sugar was booked, the amount of production committed varied between beet processors, and cane processors typically carry lower commitments than beet processors. There also appeared to be regional pockets of buyers that needed more coverage than others, notably on the West coast, which was more dependent on Mexican supply. There remained a majority of 2016 coverage to complete, with sellers hesitant to commit amid ongoing uncertainty about the outcome of the Mexican trade situation, and a number of buyers holding out for lower prices for the same reason. Brokers suggested there was limited downside price potential given floor prices and limited, time-controlled shipments for Mexican sugar exports if the suspension agreements hold, or export duties around 56% if the agreements are not kept in place. Some brokers suggested there was at most only 1@3c a lb downside on sugar, and potentially more upside. Corn sweetener markets remained quiet with the majority of business contracted for 2015 in November and early December. Supplies were expected to be tight in 2015 due to limited production capacity. Remaining unbooked material was likely to be priced above material already contracted for 2015. FBN Beet and cane sugar f.o.b. plant, cents per lb - Change from - Feb. 20 Feb. 13 Feb. 6 Midwest beet 35.00 @ 36.00 - -1.00 Pacific beet 40.00 @ 42.00 - - Cane* 35.00 @ 37.00 - -1.00 Year ago 26.50 27.50 27.50 *Spot raw plus 7% plus 7.9c with 2% cash discount. Raw cane Delivered refiner, cents per lb Contract Nearby April-June July-September October-December January-March April-June - Change from - Feb. 20 Feb. 13 Feb. 6 24.75 +.25 +.20 24.75 +.25 -.10 24.90 +.25 -.15 25.05 - -.25 25.05 - -.05 25.05 ... ... Year ago 21.85 21.85 22.25 22.75 22.70 22.95 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. 20 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 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 * February 24, 2015 FOODBUSINESS NEWS ® 65

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

Food Business News - February 24, 2015
General Mills accepts the C.P.G. challenge
Gluten-free front and center
Mexican trade rift looms over Sweetener Colloquium
Table of Contents
Web Contents
Editorial - Subscription models may offer unique marketing opportunities
Confectionery companies switching to simpler ingredients
McCormick to acquire Italian spices and seasonings company
Mondelez has big plans to grow small platforms
WhiteWave Foods ‘busting at the seams'
More c-suite change at Kraft Foods
Keurig in transition
Mondelez acquires Enjoy Life Foods
Innovation paying for PepsiCo
TreeHouse Foods trims expectations
Kraft cleans up Capri Sun
Washington - Federal bills seek to mandate G.M.O. food labeling
Company Profile - Dr Pepper Snapple Group seizing opportunities
Capitalizing on R.C.I.
Ingredient Innovations - Clean label starches get tougher
Are clean labels and G.M.O. ingredients compatible?
More clean label ingredient opportunities
Dairy Business News - Yogurt, the next generation
New Food Products
Ingredient Market Trends - Belt-tightening time for U.S. agriculture in 2015-16
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 24, 2015