Food Business News - January 15, 2013 - 45

Ingredient Markets
Market commentary for one-week period ended January 11, 2013
Soy Products
Soy fl our prices rose last week following
solid gains in soybean meal futures prices
despite position-squaring in advance of
last Friday’s World Agricultural Supply
and Demand Estimates from the U.S.
Department of Agriculture. New soy fl our
sales slowed as some buyers took a waitand-see
attitude before the U.S.D.A. reports,
which were expected to show an expansion
of U.S. and world soybean supplies that
might be bearish for the soy complex. Soy
fl our bookings remained two to three weeks
forward despite the light sales.
Futures prices posted gains through
midweek. Prices began moving lower near
the week’s end, but failed to erase all gains
for the week. Modest increases in soybean
production and yields in the reports last Friday
fueled declines, but the pre-report anticipation
of what one analyst called “fi reworks” failed to
materialize when the data were released.
The U.S.D.A. in its Annual Crop Production
2012 summary estimated soybean production
at 3,015 million bus, up 1% from
November but down 3% from 3,094 million
bus in 2011. Soybean yield was estimated
at 39.6 bus an acre, up 0.3 bus per acre
from November but down 2.3 bus per acre
from 2011. The U.S.D.A. soybean production
number was above the average of prereport
trade estimates at 2,999 million bus.
Soybean stocks on Dec. 1, 2012, were
estimated at 1,966 million bus, down 17%
from a year earlier, the U.S.D.A. said in its
Dec. 1 Grain Stocks report.
U.S. soybean net export sales in the week
ended Jan. 3 were above market expectations
as the pace of U.S. soybean exports continued
to exceed government projections. Private
sales reported last Thursday led further
credence to ideas that soybean exports
Chicago corn and soy futures
— Change from — Year
Corn Futures Jan. 11 Jan. 4 Dec. 28 ago
$ per bu
March 7.08¾ +28½
May 7.07 +26¼
July 6.98¾ +24½
September 6.02 +7½
December 5.77
December 5.87
Soybeans
+5¼
+5
$ per bu
January 14.24¾ +35¾
March 13.73¼
+6
May 13.64 +5½
July
August 13.32½
September 12.94¾
+¾
-44¾
-45½
-51¾
-49¾
Soybean Meal $ per ton
January 403.10 +4.90
March
404.30 +5.30
May 399.20 +6.20
July 394.30 +4.80
August 384.30 +1.30
September 373.10
-.30
January 15, 2013
11.60
11.58¼
11.67¾
13.57½ +2½ -49¾ 11.77¾
-4½
-9¾
-24.60
-20.50 301.50
-17.80
-18.90
-21.20
-18.00
304.80
304.50
307.80
308.40
308.40
11.77½
11.72
+14¾
+10¼
+4
5.99½
6.06½
6.12
-19¼ 5.78
-22¾
-22½
5.55¼
5.65
may remain strong despite high prices and
forecast record production in Brazil.
The U.S.D.A. said China purchased
126,000 tonnes of optional-origin soybeans
for 2013-14 and 180,000 tonnes of U.S.
soybeans, with 60,000 tonnes for delivery
in 2012-13 and the balance for 2013-14.
The U.S.D.A. said net soybean sales in
the week ended Jan. 3 were 321,800 tonnes
for 2012-13 and 85,000 tonnes for 2013-14,
above trade expectations of 200,000 to
400,000 tonnes. FBN
Corn Products
Corn meal prices rose last week in keeping
with gains in corn futures prices. Hominy
held steady. Mill run times were stable at
about fi ve days, and the balance was good
between supply and demand. There was
some anxiety among market participants
as they awaited Friday’s U.S.D.A. reports,
especially the World Agricultural Supply and
Demand Estimates, which were expected to
show tighter U.S. corn supplies.
The reports elicited an upward response
in old crop corn futures after prices initially
were lower, reacting to the Grain Stocks
report that showed a 17% contraction compared
to a year ago, more than forecast by
analysts, and the outlook for continued tight
supplies. Of special interest was a forecast 7%
increase in feed and residual use of corn for
2012-13 that more than offset a larger-thanexpected
increase in the size of the 2012 crop.
Among other key U.S.D.A. data released
on Jan. 11 were numbers for U.S. 2012 corn
production, estimated at 10,780 million bus,
up 1% from November but down 13% from
2011. Average corn yield was estimated at
123.4 bus an acre, up 1.1 bus per acre from
November but down 23.8 bus per acre from
2011. The U.S.D.A. corn production number
Soy products
Defatted, f.o.b. Midwest plant, $ per cwt
Jan. 11
Jan. 4
Soy fl our
Bulk
$ per cwt
Jan. 11
— Change from —
Jan. 4 Dec. 28
Chicago, bulk 25.43 @ 29.67 +.57 @ +.03 +.29 @ -.25
Chicago, sacked 27.20 @ 31.76 +.57 @ +.03 +.29 @ -.25
New York, bulk 27.10 @ 31.66 +.57 @ +.03 +.29 @ -.25
New York, sacked 29.52 @ 34.07 +.57 @ +.03 +.29 @ -.25
Oats
Minneapolis
Food grade fl akes, f.o.b.,
bagged, $ per cwt
Oat hulls, $ per ton
Milling quality oats, No. 2 heavy,
$ per bu
Jan. 11 Jan. 4 Dec. 28
31.75@32 +.25
3.86¾
+.75
+14c +12¾c
25@35 — —
— Change from —
Dec. 28
31.65 @ 32.02 +1.49 @ +.25 -1.60 @ -2.37
Sacked 32.65 @ 34.02 +1.49 @ +.25 -2.60 @ -1.37
Corn meal
was above the average of pre-report trade
estimates of 10,626 million bus.
Dec. 1 corn stocks were estimated at
8,030 million bus, down 17% from a year
earlier, the U.S.D.A. said in its Dec. 1 Grain
Stocks report.
Net export sales of U.S. corn were dismal
for yet another week, showing a world
market that continued to balk at U.S. prices
even though nearby corn futures were
trading well below 2012 record highs at
the peak of the U.S. drought last summer.
A total of only 263 million bus of U.S. corn
exports have been shipped so far this year
compared with 572 million bus shipped by
the same time last year, the U.S.D.A. said.
Net export sales of U.S. corn in the week
ended Jan. 3 totaled 12,600 tonnes for
2012-13 and saw a net reduction of 11,600
tonnes for 2013-14. The miniscule amount
was much less than the 100,000 to 250,000
tonnes expected by the trade. FBN
Oats
Food-grade oats fl akes prices rose last
week. Production was active amid seasonally
strong hot breakfast cereal demand.
Oats futures prices advanced, mostly
following corn futures higher ahead of and
after Friday’s U.S.D.A. reports. The cash
basis remained strong. FBN
Rice
U.S. milled rice and rice byproducts
prices were steady to higher last week.
Prices posted by the U.S.D.A. for world
milled rice were unchanged.
Net export sales of U.S. rice were 40,400
tonnes for 2012-13, down 24% from a week
earlier and down 53% from the prior 4-week
average, the U.S.D.A. said. FBN
Rice
offers f.o.b. mills, $ per cwt, bagged
Cash
Jan. 11
— Change from — Year
Jan. 4 Dec. 28 ago
Long grain 26.75@28 — — 25.50
Medium grain 27.50@28.50 — — 29
Parboiled 29.25@33 —
—
—
—
f.o.b. mills, $ per ton
Rice millfeed
Rice bran
Rice hulls
— Change from — Broken 13.37
Medium/short
grain
28.50
Second
heads, bulk 19.50@20 — — 17
Brewers 17@17.50
90
. . .
. . .
U.S.D.A. 2012 crop world price milled - $ per cwt
Long grain
—
C.B.O.T. rough rice futures - $ per cwt
January 15.03½
March 15.22
May 15.53½
July 15.80
+½
-0.06½
-0.07
-0.08
-0.23
+0.08
-0.04½
-0.04½
-0.03
FOODBUSINESSNEWS
®
14
. . .
200@230 0@+10 0@+10 210
30@40 0@+5 0@+5 70
18.89 — -0.33 19.28
18.62 — -0.31 18.99
13.64
14.39
14.44
14.72
14.99
45
Food Business News - January 15, 2013

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