Food Business News - September 13, 2011 - 61

Market commentary for one-week period ended September 9, 2011

Soy Products
Soy ﬂour sales were slow last week. Prices mostly declined. Traders awaited price direction from the Sept. 12 U.S. Department of Agriculture Crop Production and World Agricultural Supply and Demand Estimates reports and hoped for still lower prices once soybean harvesting begins in major states. There were some inquiries for 2012 but no longterm contracting resulted. Some processors prepared for scheduled maintenance this week, but deliveries were expected to proceed on schedule with lead times for new orders holding at two to three weeks. Soybean basis levels eased as farmer sales increased to make storage room ahead of the fall harvest and as demand eased due to processor downtime. Soybean and soybean meal futures prices declined during the holiday-shortened week. Global economic fears and strength in the U.S. dollar weighed, as did beneﬁcial rainfall across parts of the Corn Belt. After midweek, attention turned to positioning ahead of Sept. 12 U.S.D.A. reports with the trade generally expecting a drop from August in the U.S.D.A. soybean production estimate. Talk of frost in parts of the Corn Belt also were supportive. Soybean crop conditions as of Sept. 4 in the 18 major growing states were rated 56% good to excellent, down from 57% a week earlier and 64% at the same time last year, the U.S.D.A. said in its weekly Crop Progress report. The crop was 97% setting pods (98% as the 2006-10 average for the date) and 6% dropping leaves (13% as the average). Harvesting progressed across the South with 38% combined in Texas, 34% in Louisiana, 7% in Mississippi and 4% in Arkansas as of Sept. 4, according to U.S.D.A. ﬁeld ofﬁces in those states. Soybean net export sales during the week ended Sept.1 totaled 444,900 tonnes for

delivery in 2011-12, which began Sept. 1, the U.S.D.A. said. Outstanding sales of 2,281,900 tonnes were carried over from 2010-11. Exports in 2010-11 totaled 39,993,100 tonnes (1,469 million bus), up 1% from 2009-10. FBN

Corn Products
Corn meal sales were steady last week. Prices declined. Most users have only light coverage into 2012. Sales remained balanced across all grit sizes. Mills ran about ﬁve days due to the Labor Day holiday. Cash basis levels for corn weakened ahead of the fall harvest. Corn futures prices were lower, pressured by outside economic concerns, strength in the U.S. dollar, the advancing corn harvest and proﬁt taking ahead of Monday’s U.S. Department of Agriculture Crop Production and supply/demand reports. The pressure overshadowed trade expectations for a lower 2011 U.S.D.A. corn crop estimate from July and a drop in crop condition ratings from a week earlier. Corn in the 18 major states was rated 52% good to excellent as of Sept. 4, down from 54% a week earlier (69% a year ago), with 21% rated poor to very poor (11% last year), the U.S.D.A. said in its weekly Crop Progress report. The crop was 18% mature (20% as the 2006-10 average for date). Corn harvesting continued to advance ahead of the average pace in many states. Combining was 100% completed in Louisiana as of Sept. 4, 83% in Mississippi, 43% in Alabama, 88% in Georgia, 75% in South Carolina, 53% in North Carolina, 17% in Virginia, 24% in Tennessee, 7% in Kentucky, 5% in Texas, 32% in Oklahoma, 49% in Arkansas, 11% in Missouri, 14% in Kansas and 3% in Illinois, according to U.S.D.A. ﬁeld ofﬁces. Grain sorghum in the 11 major states

was 22% harvested as of Sept. 4, but near the average for the date, the U.S.D.A. said. Net export sales of corn during the week ended Sept. 1 totaled 820,600 tonnes for delivery in 2011-12, which began Sept. 1, the U.S.D.A. said. Outstanding sales of 2,795,700 tonnes were carried over from 2010-11. Exports in 2010-11 were 45,256,400 tonnes (1,782 million bus), down 6% from 2009-10. FBN

Oats
Bookings of food grade oats ﬂakes were slow last week with only some fourth-quarter ﬁll-in coverage added. Prices declined, reﬂecting losses in Chicago oats futures prices. The cash basis on oats remained ﬁrm. Most users held solid coverage through the end of 2011 with a few holding some coverage into the ﬁrst quarter of 2012. Good late-season weather in Canada beneﬁted crop development and allowed harvesting of crops to run ahead of the average. New crop oats were expected to be available by late September. FBN

Rice
U.S. milled rice prices were mostly unchanged last week. Rice byproduct prices were ﬁrm to $5 a ton higher. U.S.D.A. 2011 crop world milled rice prices were $1.12@1.58 a cwt higher. Rough rice futures prices advanced after limit-up moves on Friday. The rice crop in the six major states was rated 64% good to excellent as of Sept. 4, compared with 65% a week earlier and 68% a year ago, the U.S.D.A. said in its Crop Progress report. The crop was 28% harvested, about even with the ﬁve-year average for the date, with Texas at 93% harvested, Louisiana at 81%, Mississippi at 40%, Arkansas at 16%, Missouri at 3% and California at 1%. FBN

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

Soy products

Rice
offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash Sept. 9 Sept. 2 Aug. 26 ago Long grain 25.50@28.00 — — 18.50 Medium grain 35.50@36.00 — — 25.50 Parboiled 29.50@36.00 — — 21.50 Second heads, bulk 16.00@17.00 — — 16.00 Brewers 14.00@14.50 — — 15.00 f.o.b. mills, $ per ton Rice millfeed 75.00 +5.00 +10.00 25.00 Rice bran 150@170 +5.00 +5.00 65.00 Rice hulls 30.00 +5.00 +5.00 5.00 U.S.D.A. 2011 crop world price milled - $ per cwt Long grain 23.06 +1.58 +1.58 15.22 Medium/short grain 22.75 +1.56 +1.56 14.98 Broken 16.32 +1.12 +1.12 10.77 C.B.O.T. rough rice futures - $ per cwt September 18.06 +0.10 +1.07 11.58 November 18.33 +0.10½ +1.02 11.79 January 18.63 +0.12½ +1.01½ 12.06 March 18.88½ +0.09½ +1.00 12.33

Defatted, f.o.b. Midwest plant, $ per cwt — Change from — Year — Change from — Sept. 9 Sept. 2 Aug. 26 ago Sept. 9 Sept. 2 Aug. 26 Soy ﬂour 7.26 -24¼ -26½ 4.64 Bulk 25.67 @ 25.76 -.06@ -.28 +.62 @ -.49 7.36½ -23½ -30½ 4.78¼ Sacked 26.76 @ 27.67 +.03@ -.37 +.71 @ -.58 7.49¼ -23 -29 4.91¼ Corn meal 7.55¾ -22¾ -26¼ 4.94¾ 7.60 -22 -24 4.97½ $ per cwt 6.99½ -5½ -14½ 4.76¼ — Change from — $ per bu Sept. 9 Sept. 2 Aug. 26 14.16½ -19½ +1¾ 10.23½ Chicago, bulk 25.04@ 29.25 -.48@-.50 -.52@-.55 14.26¾ -19 +3¼ 10.31 Chicago, sacked 26.81@ 31.08 -.48@-.50 -.52@-.55 14.36¾ -19 +4 10.40¼ New York, bulk 26.71@ 30.98 -.48@-.50 -.52@-.55 14.42½ -7¼ +10 10.48 New York, sacked 29.13@ 33.37 -.48@-.50 -.52@-.55 14.44¼ -10½ +16¼ 10.51½ 14.50 -9½ +20 10.56¼ Oats — Change from — $ per ton Sept. 9 Sept. 2 Aug. 26 368.70 -9.10 -7.30 297.20 Minneapolis 370.30 -9.60 -5.90 291.20 Food grade ﬂakes, f.o.b., 30.25@30.75 -75c -75c 375.10 -9.90 -6.00 293.70 bagged, $ per cwt 377.30 -9.60 -5.70 294.60 Milling quality oats, No. 2 heavy, 3.68¼ -20¾c -39¾c 379.90 -9.00 -4.20 297.00 $ per bu 25@35 — — 381.20 -7.40 -1.50 297.30 Oat hulls, $ per ton

September 13, 2011

FOODBUSINESS NEWS

Food Business News - September 13, 2011

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