Milling & Baking News - April 25, 2006 - 47

I N G R E D I E N T

Sweeteners

W E E K

Sweetener markets remained quiet
last week after the holiday weekend. Inquiry and trading for 2006-07 were more
active than for the current year. Sugar
and corn sweetener prices were mostly
unchanged. Raw value changes were
less dramatic than a week earlier. Spot
raws were unchanged, and deferred
were down 5 points to up 15.
Sugar for 2005-06 delivery traded in
the Midwest at 36½@39½c a lb, f.o.b.,
with most activity at the lower end of the
range. Processors who held fast to asking
prices of 38½@40½c a lb said they missed
out on business because users were able
to buy at the 36½c level. West coast offers
remained at 40½c a lb f.o.b. Northeast,
and Southeast offers were 39½@40½c a lb
f.o.b., with some business done over 40c.
Most processors, especially cane, still
had some sugar to sell for 2005-06, and
some were willing to discount prices to
secure sales in the face of lower-priced
imported sugar. But others were "pretty
proud" of what they still held, expecting
tighter supplies and higher prices before
new crop was available.
Processors noted increased inquiries
and sales for 2006-07. While some buyers
were "fishing" for sugar as low as 30c a
lb, actual sales were said to have occurred
at 32½c Midwest, 33½c Southeast and
34@34½c Northeast for periods of three
months to full-year coverage. Major pro-

Beet and cane sugar

cessors were said to be aggressively selling
a "chunk" of their 2006-07 production in
the 32@35c a lb range because of historically high margins, even if they might get
higher prices by waiting. But they planned
to offer the majority of their 2006-07 production later and at higher levels.
U.S. Department of Agriculture data
showed domestic sugar use for food in
February up 3.4% from a year ago, and
demand for the first five months of 200506 up 2.5% from a year ago. If monthly
demand continues at or near current
levels, the U.S.D.A. should increase its
WASDE use projection later in the year,
some in the trade said.
Sugar beet planting was 7% done as of
April 16 in the four major growing states,
well behind 23% a year ago and 22% as
the recent five-year average, the U.S.D.A.
said. Idaho was 36% done (65% as average) and Michigan 12% (48%). Planting
had not yet begun in North Dakota or
Minnesota. Land in the Red river valley
was drying out from recent floods, and
planting would likely be delayed. Planting in Colorado was on schedule.
Corn sweetener shipments remained
seasonally strong and prices steady. MBN

Bakery Shortening

Bookings of bakery shortening expanded last week. Individual buyers who
had been holding back on completing
soybean oil bookings in the hope of lower

pricing scrambled to ensure they had supply booked at least through May. Prices of
most ingredients were stronger.
Wide price gains were registered in
soybean oil futures last week. Soybean
and soybean oil futures responded to developments in the energy market, with
crude petroleum trading to record levels
on a spate of supply and security issues.
The uncertainties in the energy market
encouraged ideas that biodiesel will become an increasingly important outlet
for soybean oil and other edible oils in
the coming months.
The cash basis on soybean oil has stabilized, and concerns that it might begin
to advance encouraged several soybean
oil buyers to secure basis-only coverage
on prospective soybean oil purchases
through December and even as far forward as June or July of 2007. Some refiners refused to issue offers on soybean oil
past the first quarter of 2007. Those taking basis-only coverage were waiting in
hopes of lower soybean oil futures prices
in coming weeks. But to date, futures
have defied bearish fundamentals such
as record soybean oil stocks and an advancing South American harvest, which
is expected to be record large.
Palm oil followed soybean oil higher.
Cottonseed oil struggled to keep pace
given heavy stocks, with some potato
chip manufacturers turning to sunflowerseed oil to lower saturated fat content. MBN

Sweeteners
Delivered basis, cents per lb
42% H.F.C.S. spot price1

f.o.b. plant, cents per lb

H.F.C.S. list price2
Regular
- Change from - Year
corn
Apr. 21
Apr. 13 Apr. 7 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
Apr. 21
Year ago
Midwest beet 36.50 @ 38.50 -.50
-.50 24.00
14.00
13.00
16.00 net
93/8@ 97/8
11½ @12
East
24.10@26.10
Pacific beet
40.00 @ 40.50
-
+1.00 25.00 Midwest
7
3
15.55
14.55
17.55 net
Midwest
23.10@25.10
Cane*
39.95 @ 40.00
-
-.40 26.10 Northeast 12 /8@ 13 /8 10¾@ 11¼
15.75
14.75
17.75 net
Southeast
13@ 13½ 107/8@ 113/8
West
26.10@28.10
*Spot raw plus 7% plus 14c with 2% cash discount.
15.25
14.25
17.25 net
Southwest 125/8@ 131/8 10½@ 11
Raw cane
15.95
14.95
17.95 net
West
13½@ 14 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
Contract
Nearby
April-June
July-September
October-December
January-March
April-June

- Change from -
Apr. 21 Apr. 13 Apr. 7
23.50
-
-.40
23.50
-
-.40
23.55
-.05
-.30
22.60
+.10
+.30
22.60
+.15
+.20
22.60
+.15
+.15

Year
ago
20.95
20.95
21.00
21.00
21.05
21.30

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Apr. 21
- Change from -
Delivery
close
Apr. 13
Apr. 7
May
24.61
+2.05
+2.07
July
25.06
+2.07
+2.10
August
25.20
+2.01
+1.90
September 25.43
+2.04
+2.09
October
25.62
+2.04
+2.06
December 25.91
+2.00
+2.04

Edible oils
Bulk, cents per lb
Year
ago
22.81
22.93
22.87
22.77
22.63
22.58

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
April
22.61 @22.86
May
22.61 @22.86
June
22.84 @23.09
July
23.06 @23.31
August
23.20 @23.45
September
23.43 @23.68
October
23.62 @23.87

48 / Milling & Baking News, April 25, 2006

Western points
22.36 @22.61
22.36 @22.61
22.59 @22.84
22.81 @23.06
22.95 @23.20
23.18 @23.43
23.37 @23.62

- Change from - Year
Apr. 21 Apr. 13 Apr. 7 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

22.75
18.00

+2.00
-

+1.75 23.25
-
21.50

15.50

-1.50

22.50

27.00
22.25

+1.00
+.50

+.50
+.50

29.75
21.00

33.75

+.50

34.00

28.75
43.50
24.00

-
-
+.50

+.50
-.50
+.50

33.25
56.00
30.00

32.75
30.25

+2.00
+1.75

+1.75 47.00
+1.50 30.25

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Milling & Baking News - April 25, 2006

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