Milling & Baking News - April 6, 2004 - 36

I N G R E D I E N T

W E E K

for equal access in tonnage for Mexican
sugar to the U.S. While the text of the
agreement was still not known, initial indications were that it would be signed
later this month.
U.S. sugar producers discounted the
report claiming an agreement would
need to pass muster by both the U.S. and
Mexican congresses. Given the approaching election in the U.S. as well as
the political situation in Mexico, passage
by either body was unlikely.
The U.S.D.A. reported area planted to
sugar beets for the 2004-05 crop was expected to total 1,358,600 acres, or only 0.5%
down from 1,365,400 in 2003-04. It was
1,427,300 in 2002-03. Idaho was down
11,000 acres, Michigan and Minnesota
both down 6,000 and North Dakota off
4,000. Increases are expected in Colorado,

Montana, Oregon and Wyoming, where
2003-04 planted area had declined due to
a shortage of water. At least one producer
group has announced it planned to cut
acreage 5%, and others had suggested they
were studying the situation.
Most sugar processors waited for the
U.S.D.A. to take action on the O.A.Q.
(Overall Allotment Quantity). There
were no hints of forthcoming action.
Beet sugar traded up to 24.40c f.o.b.
Midwest for small quantities; however,
larger buyers inquiring through October
said they had offers at 23½c f.o.b.
High fructose producers were optimistic over the outlook for a Mexican agreement, and some predicted the industry
might begin moving HFCS to Mexico as
early as the fourth quarter or the start of
2005. They said such a move, along with

Spot Raw Cane Sugar

Spot 42% HFCS

Bulk, delivered U.S. refineries, cents per lb

Delivered basis, cents per lb
April 2
Midwest
93/8 @ 97/8
Northeast
103/4 @ 111/4
Southeast
111/8 @ 115/8
Southwest
103/4 @ 111/4
West
113/4 @ 121/4

Year ago
93/8 @ 103/8
103/4 @ 113/4
111/8 @ 121/8
103/4 @ 113/4
113/4 @ 123/4

Variations in prices often tied to tank car versus truck deliveries.

Beet and Cane Sugar
f.o.b. plant, cents per lb
Midwest beet
Pacific beet
Cane*

42% High Fructose Corn Syrup

Week's
change
-
-
-.05

April 2
23.50 @ 24.50
26.50 @ 27.50
25.75 @ 25.80

Year
ago
27.50
28.50
28.70

*Spot raw plus 7% plus 3c with 2% cash discount.

Bulk, delivered Midwest plant, cents per lb

Raw Cane
Delivered refiner, cents per lb
Contract
Nearby
April-June
July-September
October-December
January-March
April-June

Price
20.80
20.80
20.90
21.00
21.25
21.35

Week's
change
-.05
-.05
-.10
-.10
+.05
-.05

Year
ago
22.10
22.10
22.25
21.95
21.80
21.90

Eggs
f.o.b. plant, $ per lb

Milk Products
f.o.b. plant, $ per lb
Nonhygroscopic whey
Delactose whey,
(20% min. protein),
Regular edible
Whey protein concentrate,
(34% protein), Regular edible
High-heat nonfat dry milk,
Chicago
Buttermilk powder

April 2
Whole egg solids
3.30 @ 3.65
Egg yolk solids
1.70 @ 2.00
Egg white solids
6.75 @ 7.45
Blends (whole with sweetener) 2.05 @ 2.45

April 2
.28 @ .30

Week's
change
+2c

.31 @ .35

.50 @ .51

+3c

East Coast, $ per lb

.88 @ .94
1 @ 1.03

+4c
+1c

April 2
10-12% natural butterfat .95 @ 1.05
Red alkalized
1.35 @ 1.45

36 / Milling & Baking News, April 6, 2004

Week's
change
-.05
+.05
+.20
-

Cocoa
Week's change
-
-

recent gains in corn, should result in a sizable hike in HFCS pricing in 2005.
Corn sweetener remained inactive,
with shipments as projected. MBN

Milk
Additional significant advances surfaced in milk products last week. Whey
advanced 2c a lb, while whey protein
concentrate climbed 3c, and high-heat
nonfat dry milk moved up 4c. Buttermilk
powder gained 1c and caseinate 5c. Ongoing strength reflected tight supplies
and an outlook for continued scarcity
into the summer months. Powder output
has drifted lower with less milk available. Restrictions on Canadian animals
entering the U.S. have created an overall
problem in the dairy market.
Widespread tightness again had a bullish impact on the overall whey market. In
addition, export demand remained active despite the higher levels. Many West
coast sellers were sold out on nearby, and
others held out for higher levels. Northeast prices again were nominal.
Whey protein concentrate offers tightened, with interest coming from food,
feed and export buyers. High-heat nonfat
dry milk moved sharply higher with
movement mostly against contracts. Production was limited. Buttermilk offers
were scarce.
Caseinate climbed 5c a lb. Processors
were passing along a reduction in subsidies by the European Union. MBN

Eggs
Conflicting price trends became evident
in dried egg products last week. While
whole egg solids declined 5c a lb, egg yolk
solids moved up 5c, and whites soared
20c to a new all-time high. The retail egg
market dropped sharply in the past week.
Overall pressure on eggs reflected slower
pre-Easter buying than expected.
Egg declines stimulated hopes among
egg product buyers for a significant setback. However, breakers again pointed to
a large number of birds currently scheduled for molt or for slaughter.
Not unexpectedly, dried product sales
remained extremely light. Inventories of
dried product remained quite small. MBN

Cocoa
Cocoa markets were extremely quiet,
and prices held steady.
Cocoa futures rallied at midweek.
Traders were said to be covering short
positions in advance of the end of the
January-March quarter.
Ongoing unrest in the Ivory Coast, the
world's largest producer, was largely ignored since the market currently was between crops. Coverage mainly was restricted to urgent needs. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - April 6, 2004

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