Food Business News - February 23, 2016 - (Page 44)

Ingredient Markets Market commentary for one-week period ended February 19, 2016 Sweeteners Trade was slow last week, which is typical the week before the International Sweetener Colloquium. Many buyers and sellers have scheduled "sideline" meetings during the Colloquium, which began Feb. 21 and runs through Feb. 24 in Aventura, Fla. While significant new business may not be concluded at the event, there typically is a pick-up in finished deals after traders return to their offices. Bulk refined beet sugar prices nearby through Sept. 30, 2016, were unchanged at 31c to 32c a lb, f.o.b. plant, with indications of a few trades slightly above and below that range, with lower values typically resulting from sellers meeting competitive offers. Pricing of beet sugar for 2017 was at a slight premium to 2016. Bulk refined cane sugar prices were unchanged at 32c to 35c a lb f.o.b. plant with the 35c-level reflecting an offering price with sales mostly occurring between 32c and 34c a lb. Beet processors still had sugar to sell, even though the U.S. Department of Agriculture lowered its beet sugar production forecast by 85,000 short tons, raw value, in its Feb. 9 World Agricultural Supply and Demand Estimates. The reduction was based on reports of lowerthan-expected sugar recovery from beets, due to "shrinkage" or loss in beet piles, which was estimated at 8.2% for 2015-16 compared with a range of 4.8% to 6.8% in the prior six years. "Although the level of shrink is high relative to historical standards, it is consistent with the warm weather experienced throughout sugar beet producing regions during the harvest and continuing through early winter in the significant growing regions in Minnesota and North Dakota," the U.S.D.A. said. Also in its WASDE, the U.S.D.A. raised it forecast 2015-16 cane sugar production by 63,000 tons due to a reported larger crop in Florida. Even though demand for cane sugar has been stronger than for beet sugar and inventories of cane sugar "remain tight by historical standards," according to the U.S.D.A., some cane refiners also indicated they still had sugar to sell for the current year. Some sellers indicated frustration with buyers who have purchased sugar on an annual basis in the past but this year were "reluctant to pull the trigger." They cited buyers' confidence that the upside of sugar prices was limited due to ample supplies of beet sugar and controlled but sufficient imports under the U.S.Mexico suspension agreements. Some of those users have switched to buying on a quarterly basis, with some even going month-to-month, hoping to still buy at "annual" prices, which some sellers were becoming reluctant to agree to. Sellers also noted the tightening of cane sugar supplies. Corn sweetener markets were quiet. Contracted shipments appeared to be shipped and delivered on schedule. FBN Beet and cane sugar f.o.b. plant, cents per lb - Change from - Feb. 19 Feb. 12 Feb. 5 Midwest beet 31.00 @ 32.00 - - Pacific beet 37.00 @ 38.00 - - Cane* 32.00 @ 35.00 - - Year ago 35.00 40.00 35.00 *Spot raw plus 7% plus 5.7c with 2% cash discount. Raw cane Delivered refiner, cents per lb Contract Nearby April-June July-September October-December January-March April-June - Change from - Feb. 19 Feb. 12 Feb. 5 25.85 +.40 +.60 25.85 +.40 +.65 25.95 +.20 +.70 25.80 -.05 +.30 25.45 - - 25.45 ... ... Year ago 24.75 24.75 24.90 25.05 25.05 25.05 I.C.E. No. 11 raw sugar futures cents per lb 18 16 14 12 10 F M A N Sweeteners Delivered basis, cents per lb HFCS spot price1 2015 prices Midwest Northeast Southeast Southwest West Feb. 19 22⅜@ 23⅜ 23¾@ 24¾ 23⅞@ 24⅞ 23½@ 24½ 24⅜@ 26⅜ HFCS list price2 42% HFCS wet Year ago 26.750 18⅞@ 19⅞ 29.000 20¼@ 21¼ 28.500 20⅜@ 21⅜ 28.000 20@ 21 29.250 20⅞@ 22⅞ 55% HFCS wet 31.750 net 34.250 net 34.000 net 33.500 net 34.750 net Regular corn syrup3 31.75 34.00 34.00 35.00 36.25 Dextrose East 39.00@41.00 Midwest 38.00@40.00 West 41.00@43.00 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 Delicious Honey. The 100% Pure and Natural Ingredient. Processed and packed in the newest facility in the United States. Strategically located in the Midwest allowing easy & cost-effective deliveries coast-to-coast. Amber, Light Amber, Extra Light Amber and Organic Honey available in drums, pails, totes and bulk trucks. FSSC 22000 certified and organic compliant. 888.SUGAR.99 44 FOODBUSINESS NEWS ® February 23, 2016

Table of Contents for the Digital Edition of Food Business News - February 23, 2016

Food Business News - February 23, 2016
Campbell Soup defends G.M.O. labeling decision
Whole grains versatility
Dairy Business News - The many shades of cocoa
Table of Contents
Web Contents
Editorial - Pickup ahead in food m. & a. activity
WhiteWave broadening its Horizon
Pilgrim’s Pride plans sizable strategic investment
Consumers not clear on clean label definition
W.H.O. report urges tax on sugar-sweetened drinks
Snacks ‘area of weakness’ for Kellogg
US Foods files for initial public offering
Beyond Tyson 2.0
General Mills ahead of natural, organic sales goal
Mondelez ‘Lines of the Future’ steadily proliferating
Smucker looks to ‘lead with innovation'
Food business blossoming for
Mars to remove artificial colors across portfolio
Three trends driving gluten-free market
Market Insight - The demise of orange juice
Washington - President’s budget for food safety leans heavily on user fees
Ingredient Trends - Manufacturers responding to non-G.M.O. trend
Whole grain intake still could improve
Is there a U.S. cocoa shortage?
New Food Products
Ingredient Market Trends - Secretary Vilsack says reports demonstrate net energy benefits of ethanol
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 23, 2016