Food Business News - April 9, 2013 - 52

Ingredient Markets
Market commentary for one-week period ended April 5, 2013

Sweeteners
The cash sugar market was quiet
last week as the trade digested higherthan-expected 2013 sugar beet planting
intentions released on March 28 in the U.S.
Department of Agriculture’s Prospective
Plantings report, awaited potential supplyand-use revisions in the April 10 World
Agricultural Supply and Demand Estimates
and held out for any sign of how the
U.S.D.A. plans to reduce the current sugar
surplus in the United States.
Most seemed to expect final sugar beet
planted area will be below the minor 1.5%
reduction revealed as growers’ intentions,
although the final number may be dictated
by a combination of weather and policy. With
the exception of western areas, sugar beet
planting was expected to be delayed because
of prolonged cold, wet weather, especially in
the Red River Valley, where snow still blankets
the region and the threat of flooding lies ahead.
Delays may result in reduced plantings.
On the other hand, talk that the U.S.D.A.
may deal with the sugar surplus by
implementing a payment-in-kind program
may encourage growers to plant their
full allotments in some areas. Under a
p-i-k program, last used in 2002 for sugar,
growers would agree to plow under some
of their crop in return for sugar previously
forfeited to the U.S.D.A. as collateral for
loans. Some say a p-i-k program would be
the least costly for U.S.D.A. in a year of
sequestration and spending constraints.

Beet and cane sugar

U.S. bulk refined beet sugar prices for
2012-13 were unchanged at 27@28c a lb
f.o.b. Midwest, with activity mostly at 27c
and with continued indications of limited
trading slightly below that range.
Most interest was for 2014 with brokers
noting increased inquiries as additional
buyers appeared more willing to take
some coverage or add to existing coverage
at prices steady with nearby levels,
which were at five-year lows. Even with
forfeitures looming this season, some
buyers saw limited downside potential and
the possibility that any U.S.D.A. action to
reduce the surplus may offer support to the
market. Inquiries for 2015 continued.
Buyers continued to find it difficult to
get offers for refined sugar out of Mexico,
partly because of weak prices in the United
States, although previously sold material
was said to be flowing well.
U.S. corn sweetener markets were
quiet, and shipments were routine. As with
sugar beets, some expected the final corn
planting number to come in below the 97.3
million acres in the Prospective Plantings
report largely because of weather delays.
New York world raw sugar futures sank
to 32-month lows this week on ample global
supplies and the imminent start of the 201314 harvest in Brazil. FBN

Edible Oils
Bookings of edible oil were limited last
week. Price changes were mixed.

Soybean oil prices declined. Soybean oil
futures prices fell with the rest of the soy
complex that continued to be pressured by
a U.S. Department of Agriculture March 1
stocks estimate that was higher than trade
expectations and that eased concerns over
the degree of tightness to be expected in
the last six months of the marketing year.
The cash basis on soybean oil was strong
and may continue to rise in coming weeks
with downtime scheduled in May at key
refineries and anticipated increased demand
for soybean oil from the biodiesel sector.
Soybean oil buyers booked what was
necessary to keep contract balances extended
about 45 days. Buyers refrained from
extending basis coverage because of recent
wide gains in premiums. Basis coverage for
the third quarter was estimated at 45% to 50%,
little changed from the previous week.
The Brazilian soybean crop was 80%
harvested, but Argentina’s crop was only
about 15% harvested. Port congestion in
Brazil remained extensive.
The U.S.D.A. reported a U.S. net export
transaction reduction of 4,600 tonnes for
soybean oil during the week ended March
28 as a cancellation from the Dominican
Republic more than offset new sales to
Canada, Venezuela and Belgium.
The premium asked for refined canola
oil in the Midwest compared with soybean
oil futures prices widened to 10¼c a lb.
Canola seed supply was tight because of
the smaller-than-expected 2012 Canadian
crop and Chinese demand for seed. FBN

Sweeteners
Delivered basis, cents per lb
HFCS spot price1

f.o.b. plant, cents per lb

HFCS list price2
Regular
— Change from — Year
corn
Apr. 5
Mar. 29 Mar. 22 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Apr. 5
Year ago
Midwest beet 27.00 @ 28.00
—
—
51.00
25.875
30.375 net
203/8@ 233/8 173/8@ 213/8
34.85@37.85
29.125 East
Paciﬁc beet
28.00 @ 30.00
—
—
51.00 Midwest
27.375
31.875 net
33.85@36.85
30.625 Midwest
Cane*
28.00 @ 30.00
—
—
51.00 Northeast 21¾@ 24¾ 18¾@ 22¾
7
7
7
7
27.625
32.125 net
Southeast 21 /8@ 24 /8 18 /8@ 22 /8
*Spot raw plus 7% plus 5.5c with 2% cash discount.
36.85@39.85
30.875 West
27.125
31.625 net
Southwest 21½@ 24½ 18½@ 22½
30.375
Raw cane
27.875
32.375 net
West
223/8@ 253/8 193/8@ 233/8
31.125
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
April-June
July-September
October-December
January-March
April-June

Apr. 5
20.50
20.50
20.80
21.90
22.65
23.00

— Change from —
Mar. 29 Mar. 22
-.20
-.25
-.20
-.25
-.25
-.35
+.10
-.05
-.15
-.10
+.10
+.20

Year
ago
34.60
34.60
34.45
33.80
33.75
33.75

Spot soybean oil
Decatur, Ill., bulk cents per lb
60.00
54.00
48.00
42.00
A

Previous Year

FOODBUSINESS NEWS

Current Year

Chicago soybean oil futures

Edible oils

Bulk in tank cars, cents per lb
Apr. 5
— Change from —
Delivery
close
Mar. 29
Mar. 22
May
48.83
-1.28
-1.60
July
49.11
-1.24
-1.57
August
49.14
-1.20
-1.43
September 49.08
-1.14
-1.31
October
48.83
-1.09
-1.20
December 48.68
-1.06
-1.22

Bulk, cents per lb
Year
ago
56.64
57.03
57.22
57.36
57.43
57.66

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
April
48.58 @48.83
May
48.58 @48.83
June
48.72 @48.97
July
49.36 @49.86
August
49.39 @49.89
September
49.33 @49.83
October
49.08 @49.58

Western points
48.08 @48.33
48.08 @48.33
48.22 @48.47
48.86 @49.11
48.89 @49.14
48.83 @49.08
48.58 @48.83

Apr. 5
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

— Change from — Year
Mar. 29 Mar. 22 ago

48.75
45.75

-1.25
—

-1.50
+.50

56.00
54.75

45.00

+.50

+1.00 49.25

49.25
40.75

-1.25
-.50

-1.75
-.50

57.50
56.00

43.50
38.00

+.25
—

-.75
-1.00

56.50
62.50

76.00
48.25

—
+.25

-3.50 100.50
-1.00 61.50

64.00
59.00

—
-.75

79.00
61.75

April 9, 2013

Food Business News - April 9, 2013

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