Milling & Baking News - February 15, 2005 - 38

I N G R E D I E N T

Soybean oil futures prices registered
gains, which kept most buyers on the
sidelines. Users already had taken
coverage of most if not all of their needs
through March. Many believed that prices
should come under renewed pressure
with the approach of the South American
soybean harvest. At the same time, it was
uncertain just how much downside the
market had, with prices already more
than 10c a lb lower than a year ago.
The U.S. Department of Agriculture
raised its estimate for 2004-05 U.S. ending
stocks of soybean oil by 10 million lbs, to
1,351 million. That compared with 200304 ending stocks at 1,076 million lbs and
2002-03 ending stocks at 1,491 million
lbs. The U.S.D.A. lowered its projection
for Brazil's soybean crop by 1.5 million
tonnes, to 63 million tonnes, still a record.
World 2004-05 soybean oil ending stocks
were projected at 1.65 million tonnes,
down 90,000 tonnes from January but up
100,000 tonnes from 2003-04.
Tropical oil pricing was steady to
a shade lower. Indications were that
palm oil imports have increased sharply,
but overall volume still was miniscule
compared with other principal oils.
Meat fats were in the post-winter
holiday doldrums. Sunflowerseed oil was
unavailable, with indications of imports
from Argentina to quench domestic
demand. Corn oil pricing was stable.
Canola oil price trends were little changed.
Export demand for U.S. soybean oil
was light in the week ended Feb. 3, at
6,500 tonnes. MBN

 SoyFlour

Bookings of soy flour were light last
week. Prices were higher.
Processors saw only limited near-term
buying of soy flour last week. Although
buyers liked current price levels and were
making inquiries, processors said, most still
expected prices to move lower as the South
American crop matured and were willing
to wait before buying longer-term. Some
processors had difficulty buying soybeans
despite a strong basis in the country, while
others reported adequate supply. Sales of
U.S. soybean meal abroad for the week
ended Feb. 3 totaled 58,600 tonnes, near the
low end of trade expectations. MBN

 Corn Meal

Sales of corn meal were steady to
stronger last week. Prices registered
narrow gains.
Sales of flaking grits to breakfast cereal
manufacturers were steady to slightly
larger, marking a welcome pickup in
business for some mills. Because of the
good milling quality of the 2004 corn
crop, coarse grits production at points

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has been in excess of market needs.
But the surplus seemed to be finding
wider outlets. Snack meal sales were
strong. Demand for brewer's grits was
seasonally slow. Sales of corn flour were
steady, but the boost provided by preLent business was no longer a factor. MBN

 Corn & Soy Futures

Corn futures prices posted gains last
week, with support from commodity
fund short covering and strong export
sales offsetting bearish supply/demand
data. The U.S. Department of Agriculture
on Wednesday pegged U.S. 2005 corn
carryover at 2,010 million bus, up 50
million bus from January, corresponding
to a 50-million-bu cut in exports for
2004-05, to 1,900 million bus. Domestic
use, projected at 8,870 million bus, was
unchanged. But the market drew a boost
late in the week when net sales of corn
abroad for the week ended Feb. 3 were
reported at 995,500 tonnes, well above
trade expectations and rebounding from
a marketing year low a week earlier.
The soy complex posted a rare week
of strong gains, getting support mostly
from speculative covering of large short
positions. The U.S.D.A. projected the 2005
soybean carryover at 440 million bus,
up 5 million bus from January and the
highest since 1985-86. Export projections
were unchanged at 1,010 million bus, but
crush was lowered 5 million bus to 1,655
million bus to reflect reduced soybean
meal demand. For the week ended Feb. 3,
net sales of U.S. soybeans abroad totaled

Spot Soybean Oil

W E E K

550,000 tonnes, above expectations. MBN

 Oats

Bookings of food grade oat flakes were
limited last week. Prices were unchanged.
Shipments were brisk, with the hot
breakfast cereal season at its peak.
Most major buyers of oat flakes already
had booked coverage of all or nearly all of
their needs through old crop, or through
May. It was expected that most initial new
crop coverage would be deferred until
the 2005 crop is seeded. At the same time,
there was a lot of business with smaller
concerns to be done through old crop,
even through March. MBN

 Sweeteners

Widespread quiet prevailed in
sweetener markets last week. Beet sugar
was unchanged. In cane, spot raws
declined 5 points, and deferred lost
5@25. Corn sweeteners were steady.
Trading in most sectors was virtually
at a standstill. A number of participants
attended the International Sweetener
Colloquium in Tucson, Ariz. In addition,
processors estimated they already had
completed 85% to 90% of their potential
business, and some sellers thought the
total already above 90%. Most buyers
indicated they would likely not re-enter
the market until the third quarter, when
some fill-in buying normally takes place.
Midwest beet sugar continued to trade
in a range of 23½@24c a lb f.o.b. Pacific
sugar traded at 24½@25c f.o.b. A week
back, sugar in the Northeast and mid-

Oats

Decatur, Ill., bulk cents per lb
Feb. 11
Oat flakes, food grade, f.o.b.
Minneapolis, bagged, $ per cwt 20.25@20.50
Milling quality oats, No. 2 heavy,
delivered Minneapolis, $ per bu
1.92
Oat screening, clean out,
oats unground, $ per bu
.80@1.10
Oat hull, ground hulls only, $ per ton 10@15

Week's
change
-
+¼
-
-

Spot Shortening
Bulk, cents per lb

Chicago Soybean Oil Futures
Bulk in tank cars, cents per lb
Feb. 11
Week's
Delivery
close
change
March
20.01
+0.97
May
20.19
+0.96
July
20.27
+0.90
August
20.30
+0.93
September
20.30
+0.83
October
20.40
+0.90

Year
ago
31.72
31.66
31.15
30.18
29.08
27.60

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

Feb. 11
20.75
18.50
18.50
23.50
19.00
33.00
30.75
56.00
28.50
45.00
28.75

Week's
change
+.75
-
-
+.50
-1.00
-.50
-
-
-
+5.75
+1.00

Milling & Baking News, February 15, 2005 / 39

Year
ago
33.25
27.00
21.00
36.75
26.50
31.00
29.75
65.00
30.00
33.75
36.25
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Milling & Baking News - February 15, 2005

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