Food Business News - October 11, 2011 - 61

Ingredient Markets
Market commentary for one-week period ended October 7, 2011

Soy Products
Soy ﬂour sales last week slowed from a week earlier when falling values attracted a ﬂurry of contracting through some or all of 2012 and buyers added various levels of coverage. Some month-to-month sales continued last week. Prices again were lower with some buyers hoping for further declines as the soybean harvest gains momentum across the Midwest. Lead times to deliver new orders were mostly two to three weeks with some stretching to a week due to the brisk activity. Soy complex futures prices remained under pressure, but losses were modest compared with the prior week’s tumble that resulted mainly from a bearish U.S. Department of Agriculture Sept. 1 corn stocks estimate. Soybean futures were near one-year lows early last week on good harvest weather and outside market pressure, especially fears about the European debt crisis on Tuesday. Prices recovered some at midweek on short covering and a turn around in outside markets. Brazil’s crop supply agency last week forecast 2011-12 soybean production at 72.2 to 73.3 million tonnes, down from a record 75.3 million tonnes in 2010-11. U.S. soybeans in the 18 major states were 19% harvested as of Oct. 2, well up from 5% a week earlier but behind 34% a year ago and 25% as the 2006-10 average for the date, the U.S.D.A. said in its weekly Crop Progress report. Seventy-six per cent of the crop was dropping leaves compared with 87% a year ago and 83% as the average. Soybean crop conditions as of Oct. 2 were rated 54% good to excellent, compared with 53% a week earlier and below 64% at the same time last year. Net export sales of U.S. soybeans during the week ended Sept. 29 for delivery in

2011-12 were 701,800 tonnes, down 32% from a week earlier, with 50% going to China, the U.S.D.A. said in its weekly Export Sales report. Net soybean meal exports for 201112, which began Oct. 1, were 285,500 tonnes, more than double the prior week’s amount. FBN

Oats
Bookings of food grade oats ﬂakes were steady last week. Prices eased slightly. Many users already held partial coverage through mid-2012 and a few through September of next year. Dry weather in Canada allowed the grain harvest to reach 92% completed in the Prairie provinces as of Oct. 2, ahead of 88% as the average for the date, according to the Canadian Wheat Board. Cereal grains in Saskatchewan and Manitoba were mostly harvested while parts of Alberta had about two weeks remaining. Statistics Canada last week estimated 2011 Canadian oats production at 2,887,000 tonnes (199 million bus), up 16% from 2010. The U.S.D.A. in its Sept. 30 Small Grains Summary 2011 estimated U.S. oats production at a record low 54 million bus, down 33% from a year ago. Harvested area was a record low 940,000 acres. FBN

Corn Products
Corn meal sales were steady to slower last week as prices leveled and turned a bit higher after the prior week’s declines. Sales were balanced across all grit sizes. Mills ran ﬁve to six days. Corn futures prices posted modest gains after falling late the prior week on bearish U.S. Department of Agriculture Sept. 1 stocks data. Corn futures’ September decline was the largest in 15 years, trade sources said. Early-week pressure came mainly from outside markets. Corn futures turned higher at midweek on short covering, technical buying, prospects of increased exports to China in 2011-12 and a turn around in outside markets. Strong weekly export sales provided support Thursday, but good harvest weather limited advances. Corn in the 18 major states was 21% harvested as of Oct. 2, up from 15% a week earlier, well behind 37% a year ago but near the 2006-10 average of 23% for the date, the U.S.D.A. said in its weekly Crop Progress report. Seventy-nine per cent of the crop was mature compared with 92% last year and 78% as the ﬁve-year average. The crop condition was rated 52% good to excellent, unchanged from a week earlier but well below 66% a year ago. Net export sales of U.S. corn during the week ended Sept. 29 for delivery in 201112 totaled 1,289,500 tonnes, up 64% from a week earlier, the U.S.D.A. said. Japan again was the main buyer. FBN

Rice
U.S. milled rice prices were unchanged to ﬁrmer last week with long grain and parboiled ﬁrm to $1 a cwt higher and other classes unchanged. Rice byproduct prices were ﬁrm to $15 a ton higher. U.S.D.A. 2011 crop world milled rice prices were 58@82c a cwt higher. Rough rice futures prices declined last week. Rice in the six major states was 65% harvested as of Oct. 2, up from 57% a week earlier and compared with 79% at the same time last year and 71% as the ﬁve-year average, the U.S.D.A. said in its weekly Crop Progress report. Net export sales of U.S. rice during the week ended Sept. 29 for delivery in 201112 were 83,100 tonnes, 2½ times the prior week’s amount, the U.S.D.A. said. FBN

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

Soy products

Rice
offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash Oct. 7 Sept. 30 Sept. 23 ago Long grain 28.00@30.00 — — 21.00 Medium grain 35.50@36.00 — — 28.00 Parboiled 32.50@37.00 — — 24.75 Second heads, bulk 16.50@17.00 — — 15.00 Brewers 14.00@16.00 — — 12.00 f.o.b. mills, $ per ton Rice millfeed 80.00 — — 30.00 Rice bran 155@205 0@+$15-$15@+30 70.00 Rice hulls 40@45 +10 +10 5.00 U.S.D.A. 2011 crop world price milled - $ per cwt Long grain 23.88 +0.82 +0.82 17.79 Medium/short grain 23.56 +0.81 +0.81 17.54 Broken 16.90 +0.58 +0.58 12.59 C.B.O.T. rough rice futures - $ per cwt November 15.62½ -0.32½ -0.86 13.25 January 15.93 -0.33 -0.86 13.52 March 16.23½ -0.32½ -0.83 13.79 May 16.51½ -0.32½ -0.82½ 14.05

Defatted, f.o.b. Midwest plant, $ per cwt — Change from — Year — Change from — Oct. 7 Sept. 30 Sept. 23 ago Oct. 7 Sept. 30 Sept. 23 Soy ﬂour 6.00 +7½ -38½ 5.28¼ Bulk 22.00 @ 22.70 -.24@ -.48 -1.30 @-1.05 6.12¾ +7 -39¼ 5.37½ Sacked 23.70 @ 24.00 -.48@ -.24 -1.05 @-1.30 6.20¼ +6¾ -39¼ 5.42½ Corn meal 6.24¼ +5 -39¼ 5.45¼ 5.93¼ +6¾ -15¼ 5.23½ $ per cwt 5.68 +2¼ -10½ 5.11¼ — Change from — $ per bu Oct. 7 Sept. 30 Sept. 23 11.58¼ -20¾ -99¾ 11.35 Chicago, bulk 22.50@ 26.50 +.15@+.14 -.70@-.78 11.70 -19½ -99 11.45 Chicago, sacked 24.27@ 28.33 +.15@+.14 -.70@-.78 11.79¼ -19 -97¼ 11.53¼ New York, bulk 24.17@ 28.23 +.15@+.14 -.70@-.78 11.87¼ -17¼ -95 11.57¼ New York, sacked 26.59@ 30.62 +.15@+.14 -.70@-.78 11.95¼ -17¼ -94¾ 11.63¾ Oats 11.92½ -17 -88¼ 11.56 — Change from — $ per ton Oct. 7 Sept. 30 Sept. 23 300.10 -4.60 -25.90 317.00 Minneapolis 304.30 -4.30 -25.80 316.20 Food grade ﬂakes, f.o.b., 29.50@30 -50c -50c 306.60 -4.00 -25.50 317.50 bagged, $ per cwt 310.20 -4.50 -25.00 319.60 Milling quality oats, No. 2 heavy, 3.41 -7c -10½c 312.60 -4.90 -24.40 320.80 $ per bu 25@35 — — 315.80 -5.00 -23.60 322.30 Oat hulls, $ per ton

October 11, 2011

FOODBUSINESS NEWS

Food Business News - October 11, 2011

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