Milling & Baking News - October 15, 2013 - 37


Soy Products
Soy flour prices declined in keeping
with the downward trend of soybean
meal futures. Bookings remained about
three weeks forward in brisk trading as
market participants’ attention was on
the harvest, which was gathering steam
in a week of favorable weather.
Soybean and soybean meal futures prices ended lower while soybean oil settled
slightly higher. Market participants were
trading on anecdotal reports of harvest
progress, yields per acre, crop conditions
and exports in the absence of U.S. Department of Agriculture data. The partial government shutdown that began Oct. 1 was
still in place at the close of a second week.
Not surprisingly, the rumor mill was
active as it related to exports. Information was sketchy, but there was talk that
China soon would be in the market to
buy a couple of cargoes of U.S. soybeans.
Export demand for soybean meal has
been viewed as robust as well.
Last week, in addition to no weekly
export sales data, there was also no
monthly Crop Production report or October World Agricultural Supply and
Demand Estimates due to the shutdown.
Soybean futures softened, not surprising
in the face of mounting harvest pressure,
but price changes may have been muted
as the market coped with the lack of information from the U.S.D.A. The idea was to
engage in more-or-less sideways trading to
limit risk until the U.S.D.A. data were again
available to guide price discovery.
The November soybean contract
closed down about 28c a bu, or 2%, on
the week. MBN

Corn Products
Prices of cornmeal and other milled

Chicago corn and soy futures
Corn Futures
$ per bu
December
March
May
July
September
December
Soybeans
November
January
March
May
July
August
Soybean Meal
October
December
January
March
May
July

-10
-9¾
-10
-9¾
-9¼
-9½

-20¾
-20¼
-20
-19
-16¼
-16¾

7.52¾
7.52¾
7.45¼
7.40½
6.50½
6.32

-28¼
-28¾
-25¼
-18¼
-18¼
-18¾

-53
-55¼
-44½
-33¾
-29½
-27¼

15.22½
15.22
14.92
14.49¾
14.40¼
14.19¾

-9.30
-15.00
-12.80
-11.30
-9.20
-9.90

+2.10
-14.90
-15.30
-12.00
-8.80
-8.00

474.30
465.20
459.50
444.40
422.90
417.90

bakingbusiness.com / world-grain.com

which meant harvest pressure may extend for several more weeks. MBN

Oats
Food-grade oats flakes prices were
unchanged, in keeping with limited
changes in nearby oats futures prices last
week. The hot breakfast cereal season
was approaching, but more consumers
were eating oatmeal or oat-containing
bars year round for the perceived health
benefit, limiting the impact of cooler
weather on traditional buying patterns.
Because of the partial shutdown of the
U.S. government, new official data on
oats supply and demand were not available last week from the U.S.D.A. MBN

Rice
U.S. milled rice and rice byproducts
prices were unavailable last week because the U.S. Department of Agriculture was closed as part of the partial
shutdown of the government.
Unlike many agricultural commodity
markets that embraced sideways trading last week to limit market risk in the
absence of key government data, rice
futures made a fairly significant upward
price move, reaching their highest levels
of the month on short-covering.
Export data from the U.S.D.A. was
not available for the second week in
a row. Rice supply-and-demand data
that would have been included in the
U.S.D.A.’s October World Agricultural
Supply and Demand Estimates report
was not released Friday because of the
government shutdown, and some market observers doubted it would ever be
released as the U.S.D.A. may move on
to prepare and release the November
WASDE early next month. MBN

Soy products

— Change from — Year
Oct. 11 Oct. 4 Sept. 27 ago
4.33¼
4.46¼
4.54½
4.62
4.68¼
4.75½
$ per bu
12.66¾
12.66¼
12.54
12.39½
12.35
12.23¾
$ per ton
422.00
403.40
400.90
394.20
385.30
381.30

corn products were lower last week, in
sync with declines in corn futures. The
corn cash basis was making its move
from old-crop to new-crop values and
was sharply lower, now at about 50c a
bu over nearby futures compared with
the peak that was about $2 a bu above
the futures, depending on location. An
executive at a grain company said the
basis was likely to sink to even money
or to a discount as the harvest expanded.
Corn futures prices ended down about
10c a bu, or 2%, for the week. In the absence of U.S.D.A. crop and export data,
market participants shared information
about possible export sales to China and
countries in Latin America.
But the corn futures market, weaker
in cautious trading for most of last week,
was riveted by news of a proposal from
the Environmental Protection Agency that
called for a sizable reduction in the biofuel
blending mandate. The proposal, which
was called preliminary and would require
White House approval, said 13 billion gallons of corn ethanol would be blended into
gasoline in 2014, down from the 14.4 billion gallons in the current mandate.
“If the report is true, it would be a
very bearish factor,” said the grain executive. He said the reduction could add as
much as 500 million bus to the alreadyexpected 2-billion-bu carryout. Prices
of corn futures fell several cents on the
news, adding to weaker tone.
Harvest pressure from a record corn
crop was the overwhelming market
fundamental. But the soybean harvest
was currently taking precedence over
corn, even though the soybean crop was
planted later. Producers were eager to
get the more vulnerable soybeans into
storage before concentrating on corn,

Ingredient Week

Defatted, f.o.b. Midwest plant, $ per cwt
— Change from —
Oct. 11
Oct. 4
Sept. 27
Soy ﬂour
Bulk
33.16 @ 37.20 -1.47@ -.47 -.65 @+.08
Sacked
34.16 @ 39.20 -1.47@ -.47 -.65 @+.08

Rice
Oﬀers f.o.b. mills, $ per cwt, bagged

— Change from — Year
Cash
Oct. 11
Oct. 4 Sept. 27 ago
Long grain
27.50@30.00
—
— 26.75
Medium grain 28.50@30.50
—
— 27.50
Parboiled
31.00@33.00
—
— 29.25
Second
Corn meal
heads, bulk 19.00@19.50
—
— 19.50
$ per cwt
16.50@18.00
—
— 17.00
— Change from — Brewers
Oct. 11
Oct. 4
Sept. 27 f.o.b. mills, $ per ton
60.00
—
— 90.00
Chicago, bulk
24.02@ 28.79 -.20@-.20 -.42@-.42 Rice millfeed
170@215
— +5.00 190.00
Chicago, sacked 25.79@ 30.48 -.20@-.20 -.42@-.42 Rice bran
20@25
—
-5.00 40.00
New York, bulk 25.69@ 30.38 -.20@-.20 -.42@-.42 Rice hulls
New York, sacked 28.11@ 32.79 -.20@-.20 -.42@-.42 U.S.D.A. 2012 crop world price milled - $ per cwt
Long grain
18.31
—
— 19.38
Oats
Medium/short
17.95
—
— 19.11
— Change from — grain
Minneapolis
12.55
—
— 13.71
Oct. 11
Oct. 4 Sept. 27 Broken
C.B.O.T. rough rice futures - $ per cwt
Food grade ﬂakes, f.o.b.,
November
15.11½ +0.23½ +0.40½ 15.03
bagged, $ per cwt
29.50@30.50
—
—
January
15.34
+0.26
-0.22 15.35
Milling quality oats, No. 2 heavy,
March
15.52
+0.26
-0.30 15.67
$ per bu
3.51¾
-1½c
—
May
15.69
+0.26 -0.30½ 15.90
Oat hulls, $ per ton
25@35
—
—
Milling & Baking News October 15, 2013 / 37

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Milling & Baking News - October 15, 2013

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