Milling & Baking News - January 7, 2014 - 36

Ingredient Week 

Sweeteners
Corn sweetener contracting for 2014
was active during the last two weeks of
the year amid what some called a price
collapse. Sugar markets were quiet with
many traders out of their offices due to
the midweek holiday; prices were steady.
Corn sweetener contracting for 2014
was fairly active before and after Christmas and at much lower levels than sought
by corn refiners in initial offers in early
November, which were about 1¾@2¾c a lb
below 2013 contracted levels. At the time,
buyers appeared to be seeking discounts
of 3c a lb, and in some cases as much as 4c.
Contracting began slowly as corn refiners mostly held to the initial offers,
but buyers sought lower prices. Negotiations were expected to kick into high
gear after Thanksgiving. The week prior
to Christmas, activity picked up with
talk of some contracting taking place at
4@5c and in some cases 6c below 2013
prices. The market appeared to collapse
immediately after Christmas, with 6@8ca-lb discounts from 2013 contracted prices common on corn sweetener products.
By the time the New Year's holiday arrived, it was estimated as much as 80%
of 2014 contracting had been completed.
As was the case in most recent years,
those users who waited were rewarded
with the lowest corn sweetener contracted
prices. There were some who continued to
hold out last week, but most traders saw
little additional downside price potential

Beet and cane sugar
- Change from -
Jan. 3
Dec. 27 Dec. 20
Midwest beet 27.00 @ 27.50
-
-.50
Paciﬁc beet
27.50 @ 31.00
-
-.50
Cane*
27.50 @ 31.00
-
-.50

Year
ago
31.00
33.00
33.00

*Spot raw plus 6.1% plus 5.5c with 2% cash discount.

Raw cane
Delivered reﬁner, cents per lb
Jan. 3
20.10
20.10
20.60
21.45
22.10
22.40

Year
ago
22.20
22.20
22.50
22.95
23.50
23.55

Decatur, Ill., bulk, cents per lb
60.00
55.00
50.00
45.00
40.00
35.00
A

J
Previous Year

Delivered basis, cents per lb
42% HFCS spot price1
Midwest
Northeast
Southeast
Southwest
West

Jan. 3
15⅜@ 17⅜
16¾@ 18¾
16⅞@ 18⅞
16½@ 18½
17⅜@ 19⅜

Year ago
20⅜@ 23⅜
21¾@ 24¾
21⅞@ 24⅞
21½@ 24½
22⅜@ 25⅜

Prices reﬂect 2014 reﬁner oﬀers
HFCS list price2
Regular
corn
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
23.125 East
19.875
24.375 net
27.85@29.85
24.625 Midwest 26.85@28.85
21.375
25.875 net
24.875 West
21.625
26.125 net
29.85@31.85
24.375
21.125
25.625 net
25.125
21.875
26.375 net

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

- Change from -
Dec. 27 Dec. 20
+.35
+.70
+.35
+.70
+.05
+.30
+.30
+.50
+.20
+.35
+.10
+.25

Spot soybean oil

Edible Oils
Bookings of bakery shortening were
limited during New Year's week. Prices
of most ingredients were lower.
Soybean oil prices declined. Soybean

oil futures prices dropped in sympathy
with the rest of the soy complex. The cash
basis on soybean oil remained weak with
some suggesting an even weaker tone in
the weeks ahead. A strong soybean crush
augmented by heavy foreign demand for
soybean meal ensured ample soybean oil
supplies that required outlets.
Soybean oil prices dipping below
38.5c a lb triggered an expansion in
booking, which ensured contract balances remained extended between 30
and 45 days. Basis-only coverage for the
first quarter of 2014 was pegged at 80%
with some reluctance to book basis into
the second quarter evident.
The soybean crop in Argentina was
nearly 90% planted, and in the Brazilian state of Mato Grosso, early harvest
of soybeans may begin by mid-January.
Palm oil prices followed soybean oil
lower. Coconut oil prices have steadied
or even firmed a bit. Prices spiked in the
wake of the Nov. 8 onslaught of Typhoon
Haiyan across the Philippines but since
have pulled back. Prices still were 12c a
lb higher than before the typhoon.
Cottonseed oil prices remained strong
with merchandisers pointing to a smaller cotton crop that was slow to be harvested as a key factor.
The premium to soybean oil futures
prices asked for refined canola oil in the
Midwest slipped below 2c a lb. Crude
canola oil was trading in bulk at a discount to soybean oil. MBN

Sweeteners

f.o.b. plant, cents per lb

Contract
Nearby
February-March
April-June
July-September
October-December
January-March

beyond the latest 6@8c-a-lb discounts.
The sugar market was much quieter.
Midwest beet sugar prices held at 27c a lb
f.o.b. last week. Refined cane sugar prices
also were unchanged at 27.5c a lb f.o.b., although some cane offers remained above
30c a lb. Two beet processors were withdrawn from the market with one expected
to be out through February to ensure adequate supply to meet forward sales. Beet
processors generally were well sold at a
much higher percentage of prospective
production than were cane refiners, which
is typically the case. Most industrial sugar
buyers have needs covered for 2014 while
food service and resellers still need to book
supply to complete coverage for the year.
The trade was closely watching the
Mexican market to see what impact new
taxes on sweetened beverages and snacks
that begin in 2014 will have on sweetener
consumption, and to see how sugar and
corn sweetener trade develops. Some brokers a couple weeks ago noted new sales
of Mexican sugar into the United States
and competitive prices, which was a
change from the previous several weeks,
when they were unable to get offers from
Mexican sellers. Shipments of previously
sold Mexican sugar remained active. MBN

O
Current Year

36 / January 7, 2014 Milling & Baking News

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Jan. 3
- Change from -
Delivery
close
Dec. 27
Dec. 20
January
38.34
-.68
-1.10
March
38.60
-.75
-1.14
May
38.94
-.79
-1.18
July
39.32
-.77
-1.18
August
39.43
-.77
-1.17
September 39.51
-.75
-1.17

Edible oils
Bulk, cents per lb
Year
ago
49.42
49.90
50.33
50.69
50.66
50.59

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
January
35.59 @35.84
February
35.72 @35.97
March
35.85 @36.10
April
36.27 @36.52
May
36.44 @36.69
June
36.63 @36.88
July
36.82 @37.07

Western points
35.09 @35.34
35.22 @35.47
35.35 @35.60
35.77 @36.02
35.94 @36.19
36.13 @36.38
36.32 @36.57

- Change from - Year
Jan. 3 Dec. 27 Dec. 20 ago
Soybean oil,
Decatur
Loose lard, Chicago
Edible tallow,
Chicago
Cottonseed oil,
Miss. PBSY
Palm oil, ports
Palm kernel oil,
ports
Coconut oil
Peanut oil,
Southeast
Corn oil, Decatur
Sunﬂowerseed oil,
Midwest
Canola oil, Midwest

35.75
36.00

-.75
-

-1.25 47.00
-10.00 53.75

36.00

-4.00

-3.00

42.75

43.25
42.00

-.25
-.25

-.75
+.25

50.00
42.25

47.50
61.00

-1.25
+1.00

+.75 46.00
+1.00 38.50

72.00
38.75

-2.50
-

-2.50
+.25

96.00
51.75

57.00
40.00

-
-1.00

-
-2.00

66.00
56.00

bakingbusiness.com / world-grain.com

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Milling & Baking News - January 7, 2014

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