Food Business News - August 16, 2011 - 54

Ingredient Markets
Market commentary for one-week period ended August 12, 2011

Sweeteners
Sweetener trading was quiet last week, and sugar prices remained ﬁrm. Sugar beet crop conditions declined in some areas. The U.S. Department of Agriculture in its Aug. 11 World Agricultural Supply and Demand Estimates raised projected sugar ending stocks from its July forecasts for both 2010-11 and 2011-12. Offers on domestic bulk reﬁned sugar held ﬁrm at 59@60c a lb f.o.b. for spot through Sept. 30, 2012. Sugar for 2013 was offered around 45c a lb f.o.b., also unchanged. Trading was slow. The U.S.D.A. projected 2011-12 sugar ending stocks at 1,342,000 tons, raw value, up 68,000 tons, or 5%, from July, resulting in a stocks-to-use ratio of 11.7%, up from 11.1%. The increase resulted from a 258,000ton bump in beginning stocks, partially offset by an 80,000-ton decrease in U.S. sugar production (beet sugar down 50,000 tons and cane sugar down 30,000 tons) and a 110,000-ton decrease in imports (Mexico down 235,000 tons and tariff rate quota up 125,000 tons). But the bigger change was in the current year (2010-11) with ending stocks estimated at 1,785,000 tons, up 258,000 tons, or 17%, from July and boosting the stocks-to-use ratio to 15.5% from 13.3%. The increase resulted mostly from a 270,000-ton increase in imports, including 220,000 tons from Mexico. There were no changes from July in

projected U.S. sugar use for either year. In its Aug. 11 Crop Production report, the U.S.D.A. estimated 2011 U.S. sugar beet production at 30.4 million tons, down 5% from 2010, with harvested area estimated at 1.22 million acres, up 5% from a year ago, and yield at 25 tons an acre, down about 10%. Sugar beet condition ratings slipped in the Red River Valley during the week ended Aug. 7. Sugar beets rated good to excellent was 58% in Minnesota, down from 61% a week earlier, 72% in North Dakota, down from 79%. Union workers remained locked out of American Crystal Sugar Co. plants in the Upper Midwest since rejecting a new ﬁveyear contract offer on July 30. New York world raw sugar futures were bounced around by fundamentals and outside macro-economic markets last week. Analysts again cut production estimates in Brazil. Guatemala issued its ﬁrst-ever import quota due to tight supplies, and India said it would export an additional 500,000 tonnes of sugar due to ample stocks. Domestic raw futures were less volatile and ended mixed. FBN

Edible Oils
Bookings of edible oils were brisk early last week but slowed toward the week’s end. Prices were unchanged to weaker for all ingredients. Soybean oil prices dropped to the lowest levels since December 2010. Soybean oil

futures prices slumped early in sympathy with the rest of the soy complex. Crude oil prices holding well below $100 per barrel provided little resistance to declining soybean oil prices. The cash basis on soybean oil was unchanged, although levels were at least 100 points lower for the fourth quarter compared with the nearby. Some basis coverage was taken into OctoberDecember at the lower levels. Soybean oil trading well below the meat fats found demand from the biodiesel sector. Soybean oil users bought what was required to keep contract balances extended 60 to 75 days. The U.S. Department of Agriculture on Aug. 11 forecast the soybean crush in 2011-12 at 1,635 million bus, down 20 million bus from the July projection and compared with an estimated 1,645 million bus in 2010-11. The lower crush translated into lower soybean oil production in the upcoming year, now forecast at 18,670 million lbs compared with 18,900 million lbs as the July projection and down from an estimated 19,035 million lbs in the current year. Soybean oil disappearance in 2011-12 was forecast at 19,700 million lbs, down 50 million lbs from July and down 100 million lbs from the estimate for 2010-11. Soybean oil ending stocks in 2011-12 were forecast at 1,971 million lbs, down 235 million lbs from July and down 30% from 2,816 million lbs as the estimate for 2010-11. Palm oil prices slumped as production ran high and demand was just steady. FBN

Beet and cane sugar
f.o.b. plant, cents per lb

Sweeteners
Delivered basis, cents per lb HFCS spot price1

HFCS list price2 Regular — Change from — Year corn Aug. 12 Aug. 5 July 29 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Aug. 12 Year ago Midwest beet 57.00 @ 59.00 — — 58.00 21.375 24.875 net 153/8@ 193/8 153/8@ 163/8 29.85@33.85 24.625 East Paciﬁc beet 57.00 @ 59.00 — — 58.00 Midwest 22.925 26.425 net 28.85@32.85 26.175 Midwest Cane* 59.00 @ 60.00 — — 58.00 Northeast 16¾@ 20¾ 16¾@ 17¾ 23.125 26.625 net *Spot raw plus 7% plus 15.8c with 2% cash discount. Southeast 167/8@ 207/8 167/8@ 177/8 31.85@35.85 26.375 West 22.625 26.125 net Southwest 16½@ 20½ 16½@ 17½ 25.875 Raw cane 23.325 26.825 net West 173/8@ 213/8 173/8@ 183/8 26.575 Delivered reﬁner, cents per lb 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 Contract Nearby August-September October-December January-March April-June July-September — Change from — Aug. 12 Aug. 5 July 29 39.25 +.05 -.75 39.25 +.05 -.75 39.25 -.50 -.75 39.25 -.25 -.80 40.00 — — 39.75 — +.15 Year ago 35.30 35.30 35.30 30.85 29.60 29.10

Chicago soybean oil futures
Bulk in tank cars, cents per lb Aug. 12 — Change from — Delivery close Aug. 5 July 29 August 54.60 -.30 -1.05 September 54.16 -.84 -1.64 October 54.33 -.84 -1.67 December 54.65 -.90 -1.78 January 54.92 -.91 -1.77 March 55.16 -.92 -1.83 Year ago 41.80 42.52 42.70 43.14 43.41 43.60

Edible oils
Bulk, cents per lb — Change from — Year Aug. 12 Aug. 5 July 29 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 53.50 63.25 60.75 53.50 54.25 61.75 84.00 93.50 64.25 95.00 59.00 -.50 — — -.50 -3.00 -2.00 — -.50 — — -.50 -1.00 -1.00 -1.50 -1.00 -2.50 -6.25 -1.00 -.50 -4.00 — -1.50 39.25 34.50 34.25 45.50 46.00 49.50 51.00 68.00 41.75 53.00 48.50

Spot soybean oil
Decatur, Ill., bulk cents per lb
63.00 53.00 43.00 33.00 23.00 A N F Previous Year M Current Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. August 53.35 @53.60 September 52.91 @53.16 October 52.33 @52.58 November 52.49 @52.74 December 52.65 @52.90 January 52.92 @53.17 February 53.04 @53.29 Western points 52.60 @52.85 52.16 @52.41 51.33 @51.58 51.49 @51.74 51.65 @51.90 51.92 @52.17 52.04 @52.29

FOODBUSINESS NEWS

August 16, 2011

Food Business News - August 16, 2011

Table of Contents for the Digital Edition of Food Business News - August 16, 2011