Milling & Baking News - April 11, 2017 - 61

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Edible Oils
Bookings of edible oils and fats were
steady last week, although an expansion loomed should soybean oil futures
decline further and hit levels targeted by
bakers and other buyers to extend physical ownership. Prices of most ingredients were lowered.
Soybean oil futures traded both sides
of unchanged before ending with modest losses for the week. A relatively
strong soybean crush for export meal
added to the oil supply. Soybean oil's
share in the value of the crush declined
as a result. The cash basis on soybean oil
was unchanged but had a weak tone.
Soybean oil buyers exhibited patience as
soybean oil futures dropped, booking only
what supply was required to keep contract
balances extended about 60 days on average. But target levels that would trigger a
more aggressive stance toward coverage
were near. At the same time, given the record soybean crop being harvested in South
America and assuming no weather threat
to soybean planting or growth in the United States, soybean oil prices may continue
to move lower, even to 26c or 25c a lb in the
next several weeks, according to analysts.

Soybean oil basis coverage was virtually complete for April-June and was estimated at about 30% for July-September.
Uncertainty about the fate of the $1-agallon blenders' credit continued to
overhang the market. In the past several
years, Congress has seen fit to restore the
credit in its budget for a new fiscal year
and make the credit retroactive to when
it last expired. This may very well be the
case again this year, but nothing seemed
as predictable in Washington this year
compared with years past.
The U.S. Department of Agriculture
indicated net export sales of soybean oil
during the week ended March 30 totaled
22,400 tonnes, up 79% from the previous
week and up noticeably from the prior
four-week average.
Malaysian palm oil production began to
increase seasonally. Production in March
increased 10% from February, marking the
first month-over-month rise in production
in five months. Still, the 10% rise in production fell short of the 15% increase typically seen in March. While production was
on the rise, palm oil futures advanced last
week. A factor was stocks in Malaysia and
Indonesia remained near six-year lows. MBN

Spot soybean oil

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Apr. 7
- Change from -
Delivery
close
Mar. 31
Mar. 24
May
31.62
-.16
-.61
July
31.88
-.19
-.61
August
31.98
-.19
-.58
September 32.08
-.17
-.55
October
32.14
-.14
-.53
December 32.33
-.10
-.51

Crude soybean oil
Delivery
April
May
June
July
August
September
October

34.00

40.00
29.00

36.00

19.00
A

O
Previous Year

J
Current Year

32.00
A

Western points
28.87 @29.37
28.87 @29.37
29.00 @29.50
29.63 @30.38
29.73 @30.48
29.83 @30.58
30.64 @31.39

Edible oils

44.00

24.00

Decatur, Ill.
29.37 @30.12
29.37 @30.12
29.50 @30.25
30.13 @30.88
30.23 @30.98
30.33 @31.08
31.14 @31.64

Bulk, cents per lb

Reﬁned, Midwest, bulk, cents per lb
39.00

Year
ago
33.94
34.21
34.32
34.44
34.50
34.65

Bulk in tank cars, cents per lb

Spot canola oil

Decatur, Ill., bulk, cents per lb

Ingredient Week

- Change from - Year
Apr. 7 Mar. 31 Mar. 24 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

30.00
29.75

-.25
-.25

-.75
-1.25

32.75
30.25

33.50

-.50

35.25

37.50
34.75

-.25
-

-1.75
-.25

48.00
35.50

37.50
75.00

-
-

-.75
-2.00

38.75
84.00

72.00
40.25

+5.00
-

+4.00 57.00
-.50 45.00

52.00
36.25

+2.00
-.50

-
-1.00

54.00
37.00

Shawnee Milling Company
www.s
www.shawneemilling.com

SHAWNEE FLOUR

Bakers, H & R
Food Service/Retail
Private Label
All Purpose
Self-Rising
Whole Wheat
Custom Mixes

SHAWNEE CORN MEAL

White/Yellow
Meal, Flour, Cones, Coarse
Self Rising

OKEENE FLOUR

Bakers, Pastry, Whole Wheat
bakingbusiness.com / world-grain.com

Good Millers Since 1906
Shawnee Milling Company
P.O. Box 1567, Shawnee, OK 74802-1567
405-273-7000
Okeene Milling Company
P.O. Box 1000, Okeene, OK 73763
580-822-4411

sgarlow@shawneemilling.com
Milling & Baking News XApril 11, 2017 / 61

http://www.shawneemilling.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - April 11, 2017

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