Food Business News - April 23, 2013 - 47

Ingredient Markets
Market commentary for two-week period ended April 19, 2013

Sweeteners
Cash sugar prices were unchanged last
week, but weather-delayed sugar beet
planting was a concern, and some beet
processors cautiously adopted a firmer
pricing attitude. Corn sweetener markets
remained seasonally quiet.
U.S. bulk refined beet sugar prices for
nearby through September 2014 held in the
range of 26.5@28c a lb f.o.b. Midwest. While
limited nearby trading still was noted at 26.5c
a lb, one processor pulled its lowest offers
and quoted beet sugar only at 28c a lb f.o.b.
Buyers, in some cases, still were hoping for
lower prices, eyeing the ongoing surplus in
the United States and Mexico. But brokers
also noted more buying interest for 2014
from some users, especially those with little
if any coverage, as the tone of the market
appeared to firm. There were inquiries but
little new buying interest for 2015.
Washington was “quiet” after the U.S.
Department of Agriculture released its
April supply-and-demand report a week
earlier and the U.S.D.A.’s Feedstock
Flexibility Program, one of several options
being considered to reduce the U.S. sugar
surplus, was at the Office of Management
and Budget for review.
In its first Crop Progress sugar beet
planting update of the season, the U.S.D.A.
said 13% of the crop had been planted in the
four major states as of April 14, behind the
prior five-year average of 17% and far behind
38% at the same time last year, when planting

Beet and cane sugar

was historically early. Idaho pulled the total
up with 71% of its sugar beet acres planted,
well ahead of 38% as the average and ahead
of 68% in 2012. But Michigan lagged at 4%
planted compared with 45% as the average
and 96% last year. Planting had yet to begin
in Minnesota and North Dakota. There
was snow across parts of those states with
the possibility of flooding in the Red River
Valley. Trade sources said it was unlikely
any beets would be planted in the two states
before May 1, compared with more than 90%
planted by that date last year and more than
30% planted as the five-year average.
Concerns were the late beet planting
may limit yield potential and delay harvest,
increasing the risk of frost damage in
the fall. A late harvest also would limit
opportunities to process and market new
crop sugar before the end of the current
marketing year.
Sugar cane in Louisiana was rated 36%
good to excellent (59% last year), 46% fair
(32%) and 18% poor to very poor (9%), the
state’s U.S.D.A. field office said. The cane
harvest in Florida was winding down. FBN

Edible Oils
Bookings of edible oil expanded last
week. Price changes were irregular.
Soybean oil prices ended unchanged.
Soybean oil futures prices dropped at
the outset of the week in sync with the
rest of the soy complex but advanced in
subsequent trading.

The cash basis on soybean oil remained
firm in part because of refiners’ scheduled
downtime during the next few weeks. The
cash basis was expected to remain firm until
refiners are fully operational once again. Also
providing underpinning were expectations for
increased demand from the biodiesel sector.
Soybean oil users booked what supply
was required to keep contract balances
extended 45 or even 60 days. The business
was completed early with buyers pulling
back to the sidelines when futures prices
began to advance from the early lows.
The U.S. Department of Agriculture
indicated net export sales of U.S. soybean
oil during the week ended April 11 totaled
8,200 tonnes with Mexico and Jamaica
the principal buyers. China purchased 500
tonnes. Exports during the week included
32,500 tonnes to China.
The soybean harvest was nearing
completion in Brazil and was making good
progress in Argentina.
The premium asked for refined canola oil
compared with soybean oil futures prices
advanced to 12c a lb from 11c the previous
week. Demand shut off at the higher levels.
The historically wide premium reflected the
disappointing crop harvest in Canada in 2012
and heavy foreign demand for seed, primarily
from China. The market also was concerned
the heavy snowpack across Canadian
growing regions may seriously delay the start
of planting of the 2013 canola crop.
Palm oil prices declined amid lackluster
export demand. 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. 19
Apr. 12 Apr. 5 ago
Apr. 19
Year ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Midwest beet 26.50 @ 28.00
—
-.50 51.00
3
3
3
3
20 /8@ 23 /8 17 /8@ 21 /8
25.875
30.375 net
34.85@37.85
29.125 East
Paciﬁc beet
28.00 @ 31.00
—
—
51.00 Midwest
27.375
31.875 net
33.85@36.85
30.625 Midwest
Cane*
28.00 @ 31.00
—
—
51.00 Northeast 21¾@ 24¾ 18¾@ 22¾
Southeast 217/8@ 247/8 187/8@ 227/8
27.625
32.125 net
*Spot raw plus 7% plus 6.8 with 2% cash discount.
36.85@39.85
30.875 West
Southwest 21½@ 24½ 18½@ 22½
27.125
31.625 net
30.375
3
3
3
3
Raw cane
West
22 /8@ 25 /8 19 /8@ 23 /8
27.875
32.375 net
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
May-June
July-September
October-December
January-March
April-June

— Change from —
Apr. 19 Apr. 12 Apr. 5
20.25
-.30
-.25
20.25
-.30
-.25
20.50
-.40
-.30
21.55
-.50
-.35
22.20
-.60
-.45
22.95
-.05
-.05

Year
ago
30.65
30.65
30.35
31.40
31.75
31.75

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

O
Previous Year

April 23, 2013

J
Current Year

Chicago soybean oil futures

Edible oils

Bulk in tank cars, cents per lb
Apr. 19
— Change from —
Delivery
close
Apr. 12
Apr. 5
May
49.16
-.07
+.33
July
49.18
-.24
+.07
August
49.08
-.32
-.06
September 48.94
-.43
-.14
October
48.63
-.56
-.20
December 48.47
-.65
-.21

Bulk, cents per lb
Year
ago
55.83
56.28
56.46
56.61
56.69
56.96

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
April
49.41 @49.66
May
49.41 @49.66
June
49.42 @49.67
July
49.93 @50.18
August
49.83 @50.08
September
49.69 @49.94
October
49.38 @49.63

Western points
48.91 @49.16
48.91 @49.16
48.92 @49.17
49.43 @49.68
49.33 @49.58
49.19 @49.44
48.88 @49.13

— Change from — Year
Apri.19 Apr. 12 Apr. 5 ago
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

49.75
44.75

—
-.50

+1.00 55.00
-1.00 50.25

44.25

-.25

-.75

48.00

50.00
41.50

—
-.25

+.75
+.75

56.50
55.75

45.75
38.00

+1.25
—

+2.25 56.50
—
64.50

78.50
48.50

+1.50
+.50

+2.50 103.50
+.25 61.25

64.00
61.25

—
+1.00

—
79.00
+2.25 61.25

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Food Business News - April 23, 2013

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