Milling & Baking News - July 17, 2007 - 48

Ingredient Week

Sweeteners

Sugar trading for 2007-08 picked up
in some regions last week. Indications
were prices may have bottomed. Nearby raw cane values advanced again,
surging 60 points (0.6c per lb).
Beet and cane sugar pricing for 200708 was steady to firm, although competitive selling pressure remained in
some regions, notably the Southeast.
Midwest beet sugar traded at 25@26c a
lb, f.o.b. Indicated values were 26@27c
a lb in the Southeast and 27@28c in the
Northeast and on the West coast.
A beet sugar processor raised pricing for next year by 1c a lb after hitting sales targets for a certain percentage of expected production.
Sugar trading for the current year
was nil. Prices were steady, although
some cane sugar in the Northeast and
on the West coast was offered at a minimum of 30c a lb and in the Southeast/
south regions at 28c or above. A major
cane refiner raised prices 2c a lb for
spot through September 2007 to protect margins after the recent upsurge
in raw cane values. Indicated spot
Midwest beet sugar was at 25@25½c
a lb f.o.b., Southeast/south central at
26@27c and Northeast and West coast
at 27@28c, with no sales evident.
The U.S. Department of Agriculture
projected 2007-08 sugar ending stocks
at 1,377,000 tons, raw value, down

Beet and cane sugar

40,000 tons from June. Production of
cane sugar for next year was forecast
at 3,673,000 tons, down 62,000 tons
from June, and beet sugar at 4,619,000
tons, up 99,000 tons. Imports and use
were unchanged from June. Ending
stocks for 2006-07 were estimated at
1,616,000 tons, down 77,000 tons from
the June forecast.
The House Agriculture Committee
will consider raising raw cane sugar
loan rates to 18.5c a lb from 18c and
beet sugar rates to 23.5c from 22.9c.
The proposal also would allow sugar
produced in excess of marketing allotments to be used for purposes other
than food, such as ethanol. Some
doubted the proposal will make it into
the 2007 Farm Bill.
Corn sweetener markets were seasonal. Shipments were strong. MBN

Bakery Shortening

Bookings of bakery shortening were
limited last week. Prices of most ingredients were firm to higher.
Soybean oil prices rose. Soybean oil futures prices advanced in sympathy with
the rest of the soy complex. The cash basis on soybean oil was steady to weaker
but failed to offset the higher futures.
Individual soybean oil users booked August or even September coverage. But
most kept contract balances extended no
further than 30 days with "price date of

shipment" business common. There was
inquiry for basis-only coverage for October-December.
The U.S. Department of Agriculture
on July 12 projected 2007-08 soybean oil
ending stocks at 2,105 million lbs, down
79 million lbs from the June forecast and
down 835 million lbs from an estimated
2,940 million lbs for the current year
ending Sept. 30. Soybean oil production
was projected at 20,430 million lbs, up
115 million lbs from June and compared
with 23,190 million lbs for the current
year. The production increase reflected
an increase in projected 2007-08 soybean
crush to 1,800 million bus, up from 1,790
million bus in June and compared with
1,780 million bus in the current year.
Domestic use of soybean oil in 200708 was projected at 19,900 million lbs,
up 200 million lbs from the June forecast
and compared with 18,880 million lbs in
2006-07. Soybean oil use by the biodiesel industry was projected unchanged
from June at 3,500 million lbs, compared
with the 2,400 million lbs forecast for this
year. The soybean oil price was projected
at 32@36c a lb, up 1.5c a lb from each end
of the June range and compared with
an estimated 31c per lb in 2006-07 and
23.41c per lb in 2005-06.
Palm oil supply was tight. Oils with no
trans fat continued to trade at wide premiums to soybean oil. Peanut oil prices
were nominal with offers lacking. 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
July 13
July 6 June 29 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
July 13
Year ago
Midwest beet 25.00 @ 25.50
-
-
35.00
16.875 East
15.875
18.875 net
143/8@ 145/8 11½@ 12
28.35@30.35
Pacific beet
27.00 @ 28.00
-
-
37.00 Midwest
7
3
18.425 Midwest
17.425
20.425 net
27.35@29.35
Cane*
30.20 @ 30.25 +2.70 +2.70 36.65 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 5.00c 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
July-September
October-December
January-March
April-June
July-September

- Change from -
July 13 July 6 June 29
23.00
+.60 +1.50
23.00
+.60 +1.50
21.45
+.30
+.35
21.25
+.15
+.20
21.40
+.10
+.10
21.45
-
-

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

Year
ago
22.80
22.80
22.50
22.40
22.45
22.50

Chicago soybean oil futures
Bulk in tank cars, cents per lb
July 13
- Change from -
Delivery
close
July 6
June 29
July
37.72
+.59
+1.42
August
37.97
+.64
+1.06
September 38.30
+.69
+1.14
October
38.55
+.72
+1.13
December 39.01
+.73
+1.10
January
39.33
+.73
+1.16

Edible oils
Bulk, cents per lb
Year
ago
27.37
27.39
27.64
27.90
28.33
28.60

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
July
34.97 @35.22
August
35.22 @35.47
September
35.55 @35.80
October
35.80 @36.05
November
36.03 @36.28
December
36.26 @36.51
January
36.58 @36.83
48 / July 17, 2007

Milling & Baking News

Western points
34.22 @34.72
34.47 @34.97
34.80 @35.30
35.05 @35.55
35.28 @35.78
35.51 @36.01
35.83 @36.33

- Change from - Year
July 13 July 6 June 29 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

35.25
34.50

+.50
-

+1.25 25.75
+1.00 21.00

35.00

42.75
42.00

+.50
+.75

+1.25 30.75
+.75 22.50

52.00
49.00

+1.50
-.25

+2.00 34.00
-.50 27.50

70.00
38.00

+1.50
+.75

+1.50 45.00
+.75 26.75

65.00
45.50

-
+.50

-
51.00
+1.25 34.75

18.00

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Milling & Baking News - July 17, 2007

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