Food Business News - June 19, 2012 - 95

Ingredient Markets
Market commentary for one-week period ended June 15, 2012

Dairy Products
Dry dairy product and cheese prices were mixed while butter values were sharply higher last week. Milk production continued to decline from its spring peak, but output remained above year-ago levels. Nonfat dry milk prices were mixed with some weakness in the Central and East but higher prices in the West. The overall tone to the market was stronger as production of low/medium-heat N.D.M. declined seasonally. Spot loads were offered at higher prices, while contracted material was lower in some areas. Buying interest improved as users covered needs before prices went still higher. Production of high-heat N.D.M. increased as more dryer time was available. Prices of 34% whey protein concentrate tumbled 10c a lb last week on pressure from additional spot offers as some manufacturers sought to reduce inventory levels, according to the U.S. Department of Agriculture. Production was steady. Dry whey prices were weaker on limited domestic buying interest and steady to slightly lower production. Indications were some orders were cancelled. Export interest remained good. Lactose prices were unchanged, and dry buttermilk prices were steady to higher with support from the ﬁrming N.D.M. market. CME Group cheddar prices posted strong gains on concern about supplies later in the year. Cheddar block prices hit the highest level since December before falling on Friday. Prices of wholesale varieties eased slightly. CME Group butter prices rose for the sixth consecutive week with competition for cream from ice cream manufacturers. FBN

Egg Products
Egg product prices were mostly unchanged last week with the market showing considerable stability during the past month and some items holding steady for two months or longer. At the same time, breaking egg prices were slightly ﬁrmer last week and have risen 15% to 20% during the past ﬁve weeks, with average graded egg prices up about 30% during that timeframe. Prices of liquid whole eggs, typically the ﬁrst to adjust when breaking egg prices change, were up 1c a lb while liquid white and yolk prices were unchanged. Dried and frozen egg prices were steady. Processors noted a slight uptick in orders for egg products. FBN

Dairy products
f.o.b. plant, $ per lb June 15 Whey powder .44 @ .54 Lactose .80 @ .90 Whey protein concentrate (34% edible) 1.05 @ 1.30 (80% edible) ... Whey protein isolate (90% edible) ... Nonfat dry milk high-heat Central/East 1.22 @ 1.31 West 1.17 @ 1.27 Nonfat dry milk medium-low heat Central/East 1.17 @ 1.23 West 1.11 @ 1.21 Buttermilk powder .95 @ 1.10 Casein - acid 4.30 @ 4.90 Casein - rennet 3.95 @ 4.70 Caseinate (f.o.b. ports) 4.50 @ 5.05 Butter 93AA (C.M.E.) 1.54 Cheese $ per lb, Central Cheddar (Blocks 40#) 2.48¾ C.M.E. cheddar barrels 1.57¼ C.M.E. cheddar blocks 1.61½ Mozzarella 2.46 American 5# loaf 2.06¾ — Change from — June 8 June 1 -1c -1c — -2c -10c ... ... -2c +3c — +2c — — — — +12¼c -¼c +5c — -¼c — -10c ... ... +2c +5c +1c +5c — — — — +14c +9¼c +4c -3½c +9¼c +5¾c Year ago .50 .41 1.52 ... ... 1.73 1.67 1.66 1.62 1.48 4.70 4.75 5.40 2.14 2.51¾ 2.06¾ 2.12 2.60¼ 2.42½

Cocoa
The cocoa powder market remained quiet last week. Prices were unchanged. Some traders noted more “aggressive,” meaning lower, pricing from select processors, but the offers didn’t appear to result in any substantial increase in trading. There were indications of weakness in black powder prices but no conﬁrmed sales at the lower levels. Cocoa bean futures prices ﬁrmed modestly last week and have risen more than $150 a tonne in June. FBN

Egg products
— Change from — Year Eggs June 15 June 8 June 1 ago Delivered, cents per dozen (multiply by 30 for case price) Nest runs 50.00 @ 53.00 +1.00 +2.00 54.00 Checks 36.00 @ 40.00 +1.00 +2.00 37.00 Table Grade A large 91.50 @ 100.50 — — 84.50 Dried products - f.o.b. plant, $ per lb Whole 2.55 @ 2.70 — — 2.60 Whites 4.60 @ 4.75 — — 4.35 Yolks 1.85 @ 2.00 — — 1.95 Blends (+ sweetener) 2.10 @ 2.25 — +.05 2.00 Frozen products - less than truckload, f.o.b., $ per lb Whole 0.75 @ 0.78 — — 0.74 Whites 0.70 @ 0.73 — — 0.71 Sugared yolks 0.91 @ 0.94 — — 0.93 Salted yolks 0.90 @ 0.93 — — 0.90 Liquid products - pasteurized, f.o.b., $ per lb Whole 0.51 @ 0.53 +.01 +.01 0.53 Whites 0.46 @ 0.48 — — 0.50 Yolks 0.69 @ 0.71 — — 0.70

Cocoa
— Change from — June 15 June 8 June 1 Butterfat ratio N.Y. .97 @ 1.03 +.02 +.02 Cake ratio N.Y. 1.75 @ 1.85 — — Powder ratio N.Y. 1.85 @ 1.95 -.05 -.16 $ per lb Cocoa Powder (East coast points, $ per lb) 10-12% Natural 1.90 @ 2.00 — 10-12% Alkalized 2.00 @ 2.10 — Red alkalized 2.10 @ 2.20 — Black alkalized 2.70 @ 2.80 — 16-18% Natural 2.00 @ 2.10 — 22-24% Natural 2.05 @ 2.15 — — — — — — — Year ago 1.38 1.60 1.85 2.45 2.55 2.70 2.85 2.55 2.60

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June 19, 2012

FOODBUSINESS NEWS

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Food Business News - June 19, 2012

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