Milling & Baking News - February 27, 2007 - 63

I N G R E D I E N T

Sweeteners

W E E K

Generally slow trading was evident
in sugar markets last week, with prices
holding steady. Corn sweetener markets
were quiet and unchanged.
Traders indicated slightly more activity than usual for the typically slow winter period. Most business completed was
for the remainder of the marketing year,
with a limited amount for the calendar
year. Refined beet and cane sugar prices
were unchanged, with the Midwest at
25@26c a lb f.o.b., West coast and Northeast at 28@28½c, Southeast and Gulf at
27@27½c. Nearby raw cane values also
were unchanged, while deferreds were
10 points lower to 25 higher.
Shipments of beet sugar picked up
seasonally. There was little new insight
into possible damage to beet piles in
the Red River Valley. Weather was cold
enough to keep piles frozen. Actual
losses will likely not be known until late
in the processing season.
There seemed to be more clarity
about the Mexican sugar cane crop, estimates of which have shrunk from early-season projections. Mexico's AgroIndustry Sugar Committee on Feb.
15 revised its forecast downward to 5
million to 5.1 million tonnes, compared
with last year's small crop of 5.282 million tonnes and earlier estimates of 5.4
million to 5.6 million tonnes. Last week,
the trade indicated another Mexican en-

Beet and cane sugar

tity would soon issue a crop projection
below 5 million tonnes. With domestic
demand in Mexico projected by the U.S.
Department of Agriculture at 5.2 million tonnes, anything below that number would indicate the country would
have no excess sugar to export to the
U.S. Further, more in the trade expected
Mexico to become an importer of U.S.
sugar as the year progresses and prices
there hold strong.
Through mid-February, Mexican sugar production from the 2006-07 harvest
was running 16% behind the same period as a year ago.
While only about 25% of U.S. sugar
business for the 2006-07 marketing year
remained uncovered, a smaller Mexican crop was expected to prompt buyers waiting for lower prices to lock in
supply. Some indicated there was interest in early 2007-08 at 2006-07 pricing.
But sellers were reluctant to sell that far
ahead at current prices. MBN

Bakery Shortening

Bookings of bakery shortening were
limited last week. Price changes were
irregular.
Soybean oil prices remained firm.
Soybean oil futures prices rose in sympathy with the rest of the soy complex. The principal feature behind the
strength in the soy complex was the
need for soybeans to compete with

corn for acres this spring, and corn futures prices continued to surge higher.
Partially offsetting the effect of higher
soybean oil futures prices was a declining cash basis on soybean oil. The basis
staggered under the weight of expanding soybean oil stocks. The U.S. Census Bureau last week estimated stocks
of soybean oil at the end of January at
3,257 million lbs, up from 3,141 million
lbs at the end of December 2006 and
compared with 2,495 million lbs in January 2006. Off-take of soybean oil for
use in the manufacture of biodiesel continued to be well below early optimistic forecasts. Crude oil futures hovering
around $60 a barrel made it difficult for
soybean oil at 30c a lb to be used profitably in biodiesel production.
Soybean oil buyers booked basis only
against prospective oil bookings into
the summer months. But in the face of
high soybean oil futures prices, buyers
completed oil bookings on a month-tomonth or even a week-by-week basis.
Palm oil prices tended to follow the
soybean oil market, with disappointing
demand for biodiesel a factor. Demand
for oils with no trans fat supported
prices of those products, notably corn
oil, sunflowerseed oil and cottonseed
oil. Canola oil pricing remained strong,
with U.S. and European demand for
Canadian canola heavy. Lard and edible
tallow prices were mostly steady. 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
Feb. 23
Feb. 16 Feb. 9 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
Feb. 23
Year ago
Midwest beet 25.00 @ 26.00
-
-
36.50
16.875 East
15.875
18.875 net
143/8@ 145/8 11½@ 12
28.35@30.35
Pacific beet
28.00 @ 28.50
-
-
37.50 Midwest
7
3
18.425 Midwest
17.425
20.425 net
27.35@29.35
Cane*
28.25 @ 28.35
-
+.05 38.50 Northeast 15¾@ 16 12 /8@ 13 /8
18.625 West
17.625
20.625 net
Southeast 157/8@ 161/8 13@ 13½
30.35@32.35
*Spot raw plus 7% plus 5.50c with 2% cash discount.
18.125
17.125
20.125 net
Southwest 15½@ 15¾ 125/8@ 131/8
Raw cane
3
5
18.825
17.825
20.825 net
West
16 /8@ 16 /8 13½@ 14
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
February-March
April-June
July-September
October-December
January-March

- Change from -
Feb. 23 Feb. 16 Feb. 9
20.80
-
+.50
20.80
-
+.50
20.80
-
+.60
20.90
-.10
+.55
21.15
+.25
+.80
21.20
+.20
+.60

Year
ago
23.50
23.50
23.50
23.60
22.80
22.90

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

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Feb. 23
- Change from -
Delivery
close
Feb. 16
Feb. 9
March
30.39
+.48
+.05
May
30.96
+.59
+.10
July
31.46
+.66
+.15
August
31.68
+.73
+.18
September 31.90
+.75
+.20
October
32.05
+.75
+.20

Edible oils
Bulk, cents per lb
Year
ago
22.96
23.37
23.74
23.88
24.02
24.18

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
February
27.89 @28.14
March
27.89 @28.14
April
28.18 @28.43
May
28.46 @28.71
June
28.71 @28.96
July
28.96 @29.21
August
29.18 @29.43

64 / Milling & Baking News, February 27, 2007

Western points
27.39 @27.64
27.39 @27.64
27.68 @27.93
27.96 @28.21
28.21 @28.46
28.46 @28.71
28.68 @28.93

- Change from - Year
Feb. 23 Feb. 16 Feb. 9 ago
Soybean oil,
Decatur
Loose lard, Chicago
Edible tallow,
Chicago
Cottonseed oil,
Miss. PBSY
Palm oil, ports
Palm kernel oil,
ports
Coconut oil
Peanut oil,
Southeast
Corn oil, Decatur
Sunflowerseed oil,
Midwest
Canola oil, Midwest

28.25
23.00

+.25
-1.00

-
-

22.25
16.25

23.75

+.75

18.00

33.00
30.25

+.75
-.50

+.25
-.25

29.75
23.00

42.25
35.50

-
-

+.25
+.50

33.50
28.25

46.00
29.25

-
+.50

-
+.25

45.00
26.00

53.00
40.25

-
+.25

-2.00
+.25

33.50
29.25

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Milling & Baking News - February 27, 2007

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