Food Business News - June 18, 2013 - 62

Ingredient Markets
Market commentary for one-week period ended June 14, 2013

Sweeteners
Cash sugar prices were unchanged last
week with firmness early in the week dashed
by a bearish World Agricultural Supply and
Demand Estimates report from the U.S.
Department of Agriculture at midweek. Sugar
beet planting was wrapping up with some
acres in North Dakota likely to go unplanted.
Crops received mixed condition ratings.
Bulk refined beet sugar traded in small
volume at 27@27½ a lb f.o.b. Midwest for
spot through September 2013 delivery, still
within the prior week’s range. Early in the
week, some processors were firmer on their
minimum asking prices, thinking prices had
bottomed amid uncertainty about the 2013
beet crop, strong April deliveries and the
likelihood the surplus would be reduced by
a combination of forfeitures and U.S.D.A.
actions in the near future. Trading for 2014
and 2015 slowed.
Sugar beets in North Dakota were 94%
planted as of June 9, below 98% as the 200812 average for the date, emergence was at
53%, and the crop was rated 39% good to
excellent, 36% fair and 25% poor to very
poor, the state’s U.S.D.A. field office said.
Ideas were the remaining acreage may not
be planted. The Michigan U.S.D.A. field
office noted some disease due to wet soil
conditions, while beets in parts of Idaho
were stressed by hot weather.
The U.S.D.A. in its June 12 WASDE
projected U.S. sugar carryover on Oct. 1,
2014, at 2,680,000 short tons, raw value,

Beet and cane sugar

up 19% from its May projection and up
20% from 2,231,000 tons forecast for 2013.
The 2013-14 ending stocks-to-use ratio was
projected at 22.4%, up from 18.8% in May
and compared with 19% in 2012-13. The
increase for both marketing years resulted
from sharply higher forecast imports from
Mexico. U.S. domestic production and
use forecasts were unchanged from May.
U.S. imports of sugar from Mexico were
forecast to increase 7% this year and 21%
in 2013-14 compared with May projections.
The U.S.D.A. boosted estimated 2012-13
Mexican sugar production, “to reflect the
strong pace of harvest to date.” Production
was forecast at 6,840,000 tonnes, up 10%
from the May forecast and resulting in a
45% increase in 2012-13 ending stocks.
Traders said the sharp increases in U.S.
stocks would provide incentive to the
U.S.D.A. to reduce the sugar surplus and
increased the likelihood of forfeitures.
Corn sweetener markets were routine
and seasonally quiet. FBN

Edible Oils
Bookings of edible oils expanded last
week. Price changes were mixed.
Soybean oil prices declined. Soybean oil
futures prices dropped in sympathy with the
rest of the soy complex. The cash basis on
soybean oil slipped largely in response to a
continued strong soybean crush required to
meet heavy demand for soybean meal. The
crush added to the soybean oil supply and

eased the way lower for the basis.
Soybean oil users extended coverage
on the price weakness. Contract balances
for most buyers extended from 45 to 60
days. Basis coverage for the third quarter
increased to about 75%.
The U.S. Department of Agriculture raised
its forecast for the carryover of soybean oil
on Oct. 1, 2013, to 1,730 million lbs, up 95
million lbs from the May projection but
down 32% from 2,540 million lbs in 2012.
The larger year-ending inventory for 201213 reflected a heavier soybean crush, which
raised the U.S.D.A. forecast for soybean oil
production in 2012-13 by 295 million lbs, to
19,590 million lbs.
Lard and tallow prices stood out
among domestically produced fats and
oils. Prices of those ingredients rose in
response to increased demand from the
biodiesel sector. It was expected soybean
oil may begin to capture a larger share of
the biodiesel business during the third
and fourth quarters. The U.S.D.A. forecast
soybean oil usage for biodiesel at 5,400
million lbs in the upcoming marketing year,
2013-14, compared with 4,900 million lbs of
usage estimated for the current year and
4,870 million lbs in 2011-12.
The premium asked for refined canola
oil in the Midwest compared with soybean
oil futures prices narrowed to 9c from
previous prohibitively high levels as the
market reflected greater confidence in
future supply in view of the successful
seeding of the 2013 Canadian crop. 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
June 14
June 7 May 31 ago
June 14
Year ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Midwest beet 26.50 @ 28.00
—
—
45.00
3
3
3
3
Midwest
20 /8@ 23 /8 17 /8@ 21 /8
25.875
30.375 net
34.85@37.85
29.125 East
Paciﬁc beet
27.50 @ 30.00
—
—
45.00
Northeast 21¾@ 24¾ 18¾@ 22¾
27.375
31.875 net
33.85@36.85
30.625 Midwest
Cane*
27.50 @ 29.00
—
—
46.00
7
7
7
7
Southeast 21 /8@ 24 /8 18 /8@ 22 /8
27.625
32.125 net
*Spot raw plus 7% plus 6.25 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
— Change from —
Contract
June 14 June 7 May 31
Nearby
19.35
+.20
-.05
July-September
19.35
+.20
-.20
October-December 19.65
+.20
-.45
January-March
20.30
+.40
+.10
April-June
20.50
+.20
-.35
July-September
20.80
—
-.65

Year
ago
28.95
28.95
30.00
29.15
29.35
30.00

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

Previous Year

FOODBUSINESS NEWS

Current Year

Chicago soybean oil futures

Edible oils

Bulk in tank cars, cents per lb
June 14
— Change from —
Delivery
close
June 7
May 31
July
48.48
-.05
+.10
August
48.45
-.10
+.07
September 48.24
-.16
+.03
October
47.86
-.24
-.08
December 47.62
-.32
-.19
January
47.57
-.30
-.17

Bulk, cents per lb
Year
ago
48.44
48.62
48.80
48.95
49.29
49.56

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
June
48.48 @48.73
July
48.48 @48.73
August
48.45 @48.70
September
48.24 @48.49
October
47.61 @47.86
November
47.49 @47.74
December
47.37 @47.62

Western points
47.98 @48.98
47.98 @48.98
47.95 @48.95
47.74 @48.74
47.11 @48.11
46.99 @47.99
46.87 @47.87

— Change from — Year
June 14 June 7 May 31 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

48.75
48.75

-.25
+4.00

-.25 47.25
+4.50 54.25

49.00

+2.25

+4.00 52.50

48.75
41.50

—
—

47.25
41.50

+.25
+3.00

+1.25 50.75
+3.00 56.00

82.00
43.00

—
-1.50

— 108.00
-2.00 58.00

64.00
57.50

—
-1.50

—
-2.00

-.25
-.25

49.00
48.50

79.00
53.00

June 18, 2013

Food Business News - June 18, 2013

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