Milling & Baking News - July 6, 2004 - 63

I N G R E D I E N T

Private label manufacturers indicated
increased interest in contracting through
December. MBN

Bakery Shortening
Bookings of bakery shortening were
very light. Mixed price changes were indicated, with tropical oils firm and soybean oil and most other products lower.
Soybean oil futures prices dropped last
week. The weaker tone was reinforced by
the U.S. Department of Agriculture estimating June 1 soybean stocks at a level
higher than the average of private trade
estimates. Most soybean oil users already
had covered their needs for July-September. There has been little booking of new
crop supply. While soybean plantings,
pegged by the U.S.D.A. at 74.8 million
acres, were below pre-report trade estimates, the crop itself was off to a good
start, and buyers hoped for lower prices
once the crop passes through August.
Sunflowerseed oil bucked the
downtrend. Ideas were that significant
volume recently had been booked by a
major user, which tightened supplies of
the oil for the rest of the market.
Tropical oils firmed, with tightness
also a factor for these products. MBN

Soy Flour
Bookings of soy flour were limited last
week. Prices moved erratically but finished higher than the week before.
Most soy flour users, including bakers,
already had covered their needs through
old crop, though there remained some
hand-to-mouth buyers struggling with
the volatile summer market.
Most expected lower pricing in the fall,
so there was reluctance to book new crop
needs. At the same time, buyers remembered last year, when weather turned
very hot and extremely dry during the
critical weeks of soybean development in
August. Prices then surged as crop prospects deteriorated week by week. Buyers
and sellers this year will be on edge until
August is past and the crop size is more
certain. MBN

weeks' downtime each summer, and
those vacation schedules were expected
to begin taking effect this month. Sales of
snack meal were on par with those of recent weeks. And demand for brewers'
grits was at its annual peak. Steady demand was indicated for corn flour. MBN

Corn & Soy Futures
Corn futures resumed their downward spiral, while soybeans were mixed,
with old crop July posting modest gains
but other months trading lower.
The corn crop was rated 71% good to
excellent as of June 27, about even with
the previous week and four points below
last year. Nearly ideal weather as the crop
entered the important July pollination
period weighed. The U.S.D.A. planted
acreage estimate of 80.968 million acres
was well above trade expectations.
In the soybean and meal pits, nearby
July dropped sharply early but posted
gains for the week, while other months
declined. The U.S.D.A. on Wednesday reported that 409,560,000 bus of soybeans
were in storage as of June 1, down 32%
from last year. Although above trade expectations, the data confirmed a very tight
old crop supply. But new crop months
came under pressure from the U.S.D.A.
estimate of soybean acreage at 74.809 million acres, even though it was below trade
expectations and down from the March
U.S.D.A. estimate of 75.411 million acres.
Soybean meal futures had additional
pressure from two preliminary positive tests
of mad cow disease in the U.S. One later

Spot Soybean Oil

bakingbusiness.com / world-grain.com

proved negative and results were awaited
on the second, the U.S.D.A. said. MBN

Oats
Bookings of food grade oat flakes were
sluggish. Prices were unchanged.
Most major users already had booked
their needs at least through the summer
to avoid the pitfalls of trading while
weather has its way with markets. Failed
plantings because of adverse weather
were a factor in the reported 11% reduction in oats acres in Canada from a year
ago. Statistics Canada estimated this
year's plantings at 5,000,800 acres. At the
same time, abundant moisture helped kick
start oats that were planted and that survived damage from overly heavy rains.
In the United States, oats were 53%
headed, about on par with the recent fiveyear average. And condition improved in
the week ended June 27 to 61% good to
excellent from 58% the week before. MBN

Sweeteners
New crop pricing inquiries were
mixed last week, but little business was
done because of the holiday weekend
and approaching U.S. Department of Agriculture supply/demand report at midmonth. Beet sugar prices were unchanged. No. 14 futures generally moved
higher; spot raws increased 5 points, and
deferred ended even to 20 up.
Some sellers said inquiry increased last
week, with potential buyers seeking to
book new crop sugar at current price levels. Most primary sellers showed little in-

Oats

Decatur, Ill., bulk cents per lb
July 2
Oat flakes, food grade, f.o.b.
Minneapolis, bagged, $ per cwt 19.25@19.50
Milling quality oats, No. 2 heavy,
delivered Minneapolis, $ per bu
1.551/4
Oat screening, clean out,
oats unground, $ per bu
.80@1.10
Oat hull, ground hulls only, $ per ton 10@15

Corn Meal
Sales of corn meal were steady last
week. Prices declined.
A drop in corn futures prices unleashed an expansion in booking of meal,
grits and corn flour last week, with many
buyers extending contract balances into
October-December, or of the first quarter
of the 2004-05 crop year.
Demand for flaking grits from breakfast cereal manufacturers was steady last
week. Sales of the more finely granulated
grits required for making extruded cereal
products also were steady. At the same
time, many cereal plants take up to two

W E E K

Week's
change
-
-151/2 c
-
-

Spot Shortening
Bulk, cents per lb

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
July 2
Week's
Delivery
close
change
July
28.80
-0.44
August
27.90
-0.41
September
26.83
-0.49
October
25.30
-0.50
December
24.24
-0.42
January
24.23
-0.24

Year
ago
22.22
22.09
22.05
21.65
21.24
21.23

Soybean oil, Decatur
Loose lard, Chicago
Edible tallow, Chicago
Cottonseed oil, Miss. PBSY
Palm oil, ports
Palm kernel oil, ports
Coconut oil, West coast
Peanut oil, Southeast
Corn oil, Decatur
Sunflowerseed oil, Midwest
Canola oil, Midwest

July 2
30.75
23.00
19.00
31.75
23.25
35.00
36.25
58.00
30.00
34.75
33.75

Week's
change
-.50
-
-
-2.75
+.25
+.25
+1.25
-
-1.00
+.25
-.50

Milling & Baking News, July 6, 2004 / 63

Year
ago
23.25
18.50
17.50
39.25
23.25
22.25
21.75
58.00
31.00
33.75
27.25

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Milling & Baking News - July 6, 2004

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