Food Business News - February 23, 2016 - 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

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

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FOODBUSINESS NEWS

February 23, 2016

http://www.SweetenerSupply.com

Food Business News - February 23, 2016

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