Milling & Baking News - June 21, 2005 - 53

I N G R E D I E N T

Sweeteners

W E E K

As overall sweetener markets became increasingly inactive last week,
sugar prices ended unchanged. In the
Midwest, a steady tone contrasted with
a gain of 1½c a lb during the preceding three weeks, with the market up
3c since the March low. Pacific sugar
was unchanged. No. 14 contracts were
somewhat softer. Spot raw broke 55
points, and deferred closed unchanged
to 30 down.
Many buyers stoutly resisted recent
advances. Major sellers said they had encountered virtually no demand recently
because of the higher levels.
At the same time, there were ongoing
small orders at the quoted levels. In the
Midwest, participants pointed to scattered business at 31c a lb delivered, equal
to 28c delivered in Chicago, or about 26c
f.o.b. Midwest. Northeast sellers quoted
29@29½c but acknowledged they were
not selling sugar at this level.
Beet sugar processors again underscored the tightness of the current market. Most sellers were unable to offer
sugar not because of the absence of the
physical product but because of the lack
of allotments for the balance of the marketing year, or through September. Some
predicted tightness would intensify in
September.
Distributors appeared to be the most
active sellers. Processors occasionally

Beet and cane sugar

were able to supply needs, provided the
order was not too large.
New crop bookings were at a standstill.
The market continued to look to the
U.S. Department of Agriculture for
guidance on new crop overall allotment quantity (O.A.Q.) and tariff rate
quota (T.R.Q.). Some traders guessed the
U.S.D.A. would set the O.A.Q. at 8.4 million to 8.5 million tons at least initially.
Some also pointed to a likely T.R.Q. of
no more than 1,450,000 tons, including
200,000 tons for Mexico. Some speculation persisted that the U.S.D.A. might
delay the O.A.Q.-T.R.Q. announcement
until the Central American Free Trade
Agreement issue is resolved.
Corn sweeteners were quiet, with
shipments seasonal. Some in the trade
pointed to increased H.F.C.S. shipments
to Mexico, but an outlook for a more
normal sugar crop there suggested the
current volume might not last. MBN

Bakery Shortening

Bookings of bakery shortening were
limited last week. Prices of most ingredients were steady to stronger.
Soybean oil prices advanced to the
highest levels of the marketing year. Still,
prices were about 4c a lb lower than a year
ago. Soybean oil futures prices advanced
in sympathy with rallying soybean futures prices. The soybean market was

strengthened because of ongoing concerns over dryness across key portions of
the eastern Corn Belt, particularly Illinois.
These concerns were not assuaged by improved crop conditions ratings overall
as indicated in the U.S. Department of
Agriculture's Crop Progress report issued
June 13. Rated good to excellent on June
12 was 64% of the nation's soybean crop,
compared with 62% a week earlier and
68% on the same date a year ago. The
wide price gains in soybean oil futures
and a firm cash basis pushed most buyers
of soybean oil to the sidelines after fairly
active booking the week before.
Strength in soybean oil exerted an upward pull on the markets for cottonseed
oil, canola oil and even palm oil. Cottonseed oil supplies remained extremely
tight. The spread between cottonseed
oil and soybean oil prices widened to
9@10c a lb.
Sunflowerseed oil supplies also were
scarce. Limited stocks of Nu Sun were said
to be available at about 46c a lb. Responding to strong demand and high prices,
producers were expanding sunflowerseed
area for 2005. Plantings were projected at
2,750,000 acres, up 877,000 acres, or 47%,
from 1,873,000 acres in 2004. The crop in
the four key states was 72% planted by
June 12, compared with 81% as the recent
five-year average for the date.
Prices of lard and edible tallow were
unchanged last week. MBN

Sweeteners
Delivered basis, cents per lb
H.F.C.S. spot price1

f.o.b. plant, cents per lb

H.F.C.S. list price2
Regular
- Change from - Year
corn
June 17
June 10 June 3 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
June 17
Year ago
Midwest beet 26.00 @ 26.50
-
+.50 23.50
14.25
13.50
16.55 net
East
23.10@25.10
93/8@ 97/8
93/8@ 97/8
Pacific beet
26.50 @ 27.00
-
+.50 25.50 Midwest
15.80
15.05
18.10 net
Midwest
22.10@24.10
Cane*
27.00 @ 27.05 -.60
-.40 24.75 Northeast 10¾@ 11¼ 10¾@ 11¼
16.00
15.25
18.30 net
West
25.10@27.10
*Spot raw plus 7% plus 3c with 2% cash discount.
Southeast 107/8@ 113/8 111/8@ 115/8
15.50
14.75
17.80 net
Southwest 10½@ 11 10¾@ 11¼
Raw cane
16.20
15.45
18.50 net
West
11¾@ 12¼ 11¾@ 12¼
Delivered refiner, cents per lb
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
- Change from -
Contract
June 17 June 10 June 3
Nearby
21.95
-.55
-.35
July-September
21.95
-.30
-.25
October-December 21.10
-.15
-.15
January-March
21.10
-
-
April-June
21.15
-
-.05
July-September
21.25
-
-

Year
ago
19.90
21.25
21.00
...
...
19.90

Spot soybean oil
Decatur, Ill., bulk cents per lb

Chicago soybean oil futures
Bulk in tank cars, cents per lb
June 17
- Change from -
Delivery
close
June 10
June 3
July
25.08
+2.34
+2.13
August
25.21
+2.38
+2.15
September 25.30
+2.36
+2.13
October
25.42
+2.36
+2.12
December 25.66
+2.42
+2.19
January
25.65
+2.40
+2.19

Edible oils
Bulk, cents per lb
Year
ago
27.48
26.72
25.88
24.83
24.04
24.00

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
June
25.58 @25.83
July
25.58 @25.83
August
25.71 @25.96
September
25.80 @26.05
October
26.17 @26.42
November
26.29 @26.54
December
26.41 @26.66

52 / Milling & Baking News, June 21, 2005

Western points
25.08 @25.33
25.08 @25.33
25.21 @25.46
25.30 @25.55
25.67 @25.92
25.79 @26.04
25.91 @26.16

- Change from - Year
June 17 June 10 June 3 ago
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

25.75
23.00
19.25

+2.25
-
-

+2.00 29.50
-
23.00
-
19.50

34.00
21.50
32.00

+2.50
+.75
-.25

+2.50 30.50
+.50 23.00
-.75 33.25

31.25
55.00
32.00

-
-
-

-.25
-
-

33.50
58.00
31.50

46.00

33.50

34.00

+2.25

+1.50 32.25

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Milling & Baking News - June 21, 2005

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