Food Business News - June 18, 2013 - 69

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

Soy Products
Soy flour prices were lower last week
despite modest gains in the July soybean meal
contract. Some buyers who were convinced
that soybean futures prices will rise during
the summer on tight old-crop supplies were
eager to lock in currently favorable prices for
July-September.
Soybean futures gyrated last week,
dropped after the release of the June 12 World
Agricultural Supply and Demand Estimates
from the U.S. Department of Agriculture
and ended lower for the week. The report
projected record soybean production in 2013,
but the 2014 carryout projected at 265 million
bus was below analysts’ predictions that
averaged around 273 million bus.
The U.S.D.A. projected 2013 U.S. soybean
production at a record 3,390 million bus, up
12% from 3,015 million bus in 2012. Planted
area was forecast at 77.1 million acres,
harvested area was forecast at 76.2 million
acres, and yield was forecast at 44.5 bus an
acre, all unchanged from May projections.
U.S. soybean supply in 2013-14 was
projected at 3,530 million bus, up 321
million bus, or 10%, from 3,209 million bus
in 2012-13. The latter estimate was raised
5 million bus based on a like increase in
imports, estimated at 25 million bus in
the current year. Imports in 2013-14 were
projected at 15 million bus.
The domestic soybean crush was projected at 1,695 million bus in 2013-14,
unchanged from May but up 35 million bus,
or 2%, from an estimated 1,660 million bus in
2012-13. Exports in 2013-14 were projected
at 1,450 million bus, up 120 million bus, or
9% from a downwardly revised 1,330 million
bus in 2012-13. Seed use was projected at
87 million bus, down 3 million bus from the
current year. Residual use was projected at

Chicago corn and soy futures
Corn Futures
$ per bu
July
September
December
March
May
July
Soybeans
July
August
September
November
January
March
Soybean Meal
July
August
September
October
December
January

June 18, 2013

33 million bus, up 28 million bus in 2012-13.
Total use in 2013-14 was projected at 3,264
million bus, up 179 million bus, or 6%, from
3,085 million bus as the estimate for 2012-13.
Because of a cold, wet spring in the Corn
Belt, only 71% of the crop was planted as of
June 9 in the 18 main soybean-growing states,
well behind the five-year average of 84%, the
U.S.D.A. said. A total of 48% was emerged,
down from the 67% five-year average. FBN

Corn Products
Prices of cornmeal declined last week.
Good seasonal demand kept brewers’ grits
values firm. Hominy was steady.
Corn futures prices ended lower last week
on prospects for higher ending stocks than
expected by the trade. The U.S. Department
of Agriculture projected the average price
of corn to range $4.40@5.20 a bu in 201314, down significantly from $6.75@7.15 a bu
forecast for the current year.
Also pushing prices lower was the attitude
that “rain makes grain,” an acceptance that the
positive effects of the wet spring outweighed
negative factors such as the late planting of
the crop. The U.S.D.A., in its June 12 WASDE
kept corn acreage the same despite anecdotal
reports that a small percentage of the crop
would not be planted due to wet weather. As
of June 9, 95% of the crop was planted, close
to the five-year average of 98%. But further
severe thunderstorms, some with large hail,
battered parts of the eastern Corn Belt last
week, dimming prospects for a significant
final planting push.
The U.S.D.A. projected the U.S. corn
carryover on Sept. 1, 2014, at 1,949 million bus,
down 55 million bus, or 3%, from 2,004 million
bus as the May projection, but up 1,180 million
bus from an upwardly revised forecast of 769
million bus in 2013. The U.S.D.A. 2014 U.S.

Soy products

Defatted, f.o.b. Midwest plant, $ per cwt
— Change from — Year
— Change from —
June 14 June 7 May 31
ago
June 14
June 7
May 31
Soy ﬂour
6.55
-11¼
-7
5.79½ Bulk
33.10 @ 34.93 -1.56@ -.15 -1.25 @ +.10
5.71¾ -19¾ -25½
5.09½ Sacked
34.10 @ 36.93 -1.56@ -.15 -1.25 @ +.10
5.33
-25½ -34¼
5.06
Corn meal
5.44
-24¾
-33
5.18½
5.51½ -24½ -31¼
5.26¼ $ per cwt
5.58¼
-24
-26¼
5.34½
— Change from —
$ per bu
June 14
June 7
May 31
15.16½ -11¾
+6½
13.76 Chicago, bulk
26.04@ 30.27 -.20@-.20 -.10@-.10
14.34
-22¼
-3¾
13.57 Chicago, sacked 27.81@ 32.36 -.20@-.20 -.10@-.10
13.42½ -31½
-4¾
13.32 New York, bulk
27.71@ 32.26 -.20@-.20 -.10@-.10
12.98¼
-32
-6
13.14 New York, sacked 30.13@ 34.67 -.20@-.20 -.10@-.10
13.03¾ -31½
-6¼
13.36¾
13.03¾ -26¾
-6½
12.90¼ Oats
— Change from —
$ per ton
June 14
June 7 May 31
450.70 -1.80 +3.50 410.10 Minneapolis
423.10 -8.10 -2.70 403.60 Food grade ﬂakes, f.o.b.,
32.25@32.50 -.25
+.25
403.40 -10.30 -2.60 396.90 bagged, $ per cwt
385.60 -12.10 -1.80 389.00 Milling quality oats, No. 2 heavy,
4.24½
-8c
+25¼c
383.50 -13.10 -1.40 385.70 $ per bu
25@35
—
—
384.60 -12.40 -1.10 381.00 Oat hulls, $ per ton

corn carryover was above the average trade
expectation of 1,758 million bus.
The U.S.D.A. projected 2013 U.S. corn
production at a record 14,005 million bus,
up 30% from 10,780 million bus in 2012
based on planted area of 97.3 million acres,
harvested area of 89.5 million acres, both
unchanged from May, and average yield of
156.5 bus per acre, down 1.5 bus from May
but up 33.1 bus per acre, or 27%, from 123.4
bus per acre in 2012.
U.S. corn supply in 2013-14 was projected
at 14,799 million bus, down 125 million bus,
or 1%, from May but up 2,880 million bus,
or 24%, from 11,919 million bus in 2012-13,
based on forecasts for beginning stocks at
769 million bus, imports at 25 million bus
(down 125 million bus from 2012-13) and
2013 production at 14,005 million bus.
Corn exports in 2013-14 were projected
at 1,300 million bus, unchanged from May
but up 600 million bus, or 86%, from 700
million bus in 2012-13, which was down 50
million bus from May. FBN

Oats
Seasonal demand for food-grade oats
flakes was waning and oats flake prices
eased. July oats futures prices were
marginally lower after surging higher at the
end of the previous week. FBN

Rice
U.S. milled rice and rice byproducts prices
were unchanged as of June 10, the U.S.D.A.
said. World milled rice prices were higher
with long grain up 35c, a cwt, medium/short
grain up 34c and brokens up 25c. World
rough rice prices were up as well, with long
grain up 22c a cwt and medium/short grain
up 23c, the U.S.D.A. said. FBN

Rice
offers f.o.b. mills, $ per cwt, bagged
— Change from — Year
Cash
June 14
June 7 May 31 ago
Long grain
28@30
—
— 24.50
Medium grain 28.50@28.75
—
—
27
Parboiled
30.50@33
—
— 27.75
Second
heads, bulk 18@18.50
—
—
18
Brewers
14.50@16.50
—
—
17
f.o.b. mills, $ per ton
Rice millfeed
70.00
—
—
60
Rice bran
160@195
—
-10
120
Rice hulls
15@20
—
-5
20
U.S.D.A. 2012 crop world price milled - $ per cwt
Long grain
19.30
+0.35 +0.35 18.61
Medium/short
grain
18.97
+0.34 +0.34 18.39
Broken
13.66
+0.25 +0.25 13.17
C.B.O.T. rough rice futures - $ per cwt
July
16.50½
+0.65 +1.21 13.92
September
16.41
+0.52 +0.92 14.15
November
16.56½
+0.53 +0.95½ 14.41
January
16.74
+0.53
+93 14.68

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Food Business News - June 18, 2013

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