Milling & Baking News - December 18, 2007 - 38

Ingredient Week

Sweeteners

Sweetener markets were quiet last
week. Refined sugar prices were unchanged. Raw values increased slightly
after several weeks of weakness. The corn
sweetener market was seasonally quiet.
Refined beet sugar for 2007-08 was
steady at 24½@25c a lb f.o.b. Midwest
and 25½@26c Southeast. Cane sugar was
offered at 26c a lb in the Southeast, although beet sugar was available at 25½c.
Northeast was at 26@26½c a lb. West
coast cane sugar was at 26@26½c a lb
f.o.b. While cane sugar sellers still saw a
surprising lack of competition from lower-priced beet sugar in the Northeast,
competitive pressure was present in the
Southeast and West.
Sugar buyers showed little interest in
adding to 2008 coverage before the end
of the year. With the large U.S. crop and
the opening of the Mexican border to
duty-free trade on Jan. 1, users hoped for
lower prices. Some sellers also anticipated price pressure with increased supply
projected in the Dec. 11 U.S. Department
of Agriculture's WASDE report adding
to the already "bearish tone."
But with beet processors already having sold 70% or more of their anticipated
production for 2007-08, and cane refiners nearly 60% sold, others were less
concerned about the increasing supply.
Since U.S. sugar prices were near forfeiture levels with raw cane prices already
below those levels in some areas, there

Beet and cane sugar

was a "floor" under prices that would
limit the downside. Some sellers contended the potential Mexican sugar influx already was priced into the market.
Sugar ending stocks for 2007-08 were
projected at 2,050,000 tons, raw value,
up 170,000 tons from November and up
256,000 tons, or 14%, from in 2006-07, the
U.S.D.A. said. The stocks-to-use ratio for
2007-08 jumped to 19.4% from 17.8% in
November and 17.2% a year earlier. Production was projected at 8,562,000 tons,
up 112,000 tons from November, including 4,896,000 tons of beet sugar, up
105,000 tons, and 3,666,000 tons of cane
sugar, up 7,000 tons. Imports for 2007-08
were projected at 2,244,000 tons, up
51,000 tons from November, mostly the
result of a 50,000-ton increase in imports
from Mexico. Projected domestic sugar
use was unchanged at 10,550,000 tons.
Indications were a strike by Mexican
sugar cane growers that slowed opening
of cane refineries for new crop harvest
was near resolution. MBN

Bakery Shortening

Bookings of bakery shortening expanded modestly last week. Price changes were irregular.
Soybean oil prices advanced as rising
futures prices more than offset a narrow
decline in the cash basis. Crude oil prices
bounced back after recent losses, exerting an upward pull on soybean oil. Also,
the entire soy complex was stronger as

the market traded the need for more soybean acres next spring. Soybean oil users
reluctantly extended ownership more
deeply into the first quarter of 2008.
The U.S. Department of Agriculture
projected the carryover of soybean oil on
Oct. 1, 2008, at 2,162 million lbs, up 145
million lbs from the November forecast
but down 742 million lbs, or 26%, from
2,904 million lbs in 2007. The 2006 carryover was 3,010 million lbs. Soybean
oil supply in 2007-08 was projected at
23,712 million lbs, up 45 million lbs from
November and up 177 million lbs from
2006-07. Domestic use of soybean oil in
2007-08 was projected at 19,900 million
lbs, down 200 million from November
but up 1,157 million lbs, or 6%, from
18,743 million lbs in the previous year.
Soybean oil use for the production of
biodiesel was projected at 3,800 million
lbs, down 400 million lbs from November but up 1,004 million lbs from 2006-07.
U.S. soybean oil exports were projected
at 1,650 million lbs, up 100 million lbs
from November but down 238 million
lbs from 1,888 million lbs in 2006-07.
Prices of other fats and oils were unchanged or weaker. But merchants noted
quotes mostly were nominal for the principal no-trans oils with little or no product available for the first quarter beyond
that already covered by contracts.
South American soybean areas were
faring well with the exception of pockets
of dryness identified in Brazil. 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
Dec. 14
Dec. 7 Nov. 30 ago
syrup3
Dextrose
42% H.F.C.S. wet 55% H.F.C.S. wet
Dec. 14
Year ago
Midwest beet 24.50 @ 25.00
-
-
26.00
19.875 East
18.875
21.875 net
173/8@ 175/8 143/8@ 145/8
31.35@33.35
Pacific beet
26.00 @ 26.50
-
-
29.00 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
26.10 @ 26.15 +.10
+.10 27.70 Northeast 18¾@ 19 15¾@ 16
21.625 West
20.625
23.625 net
Southeast 187/8@ 191/8 157/8@ 161/8
33.35@35.35
*Spot raw plus 7% plus 4.10c with 2% cash discount.
21.125
20.125
23.125 net
Southwest 18½@ 18¾ 15½@ 15¾
Raw cane
21.825
20.825
23.825 net
West
193/8@ 195/8 163/8@ 165/8
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
January-March
April-June
July-September
October-December
January-March

- Change from -
Dec. 14 Dec. 7 Nov. 30
20.10
+.10
-
20.10
+.35
+.05
20.05
+.15
-.05
20.45
-
-
20.80
-
+.10
20.75
-
...

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

Year
ago
19.30
19.30
19.35
19.55
19.95
20.00

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Dec. 14
- Change from -
Delivery
close
Dec. 7
Nov. 30
December 45.85
+.55
+.21
January
46.22
+.52
+.12
March
46.84
+.51
+.15
May
47.38
+.53
+.23
July
47.80
+.59
+.13
August
47.65
+.50
+.13

Edible oils
Bulk, cents per lb
Year
ago
29.96
28.15
28.59
29.02
29.43
29.54

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
December
43.85 @44.10
January
44.22 @44.47
February
44.53 @44.78
March
44.84 @45.09
April
45.61 @45.86
May
45.88 @46.13
June
46.09 @46.34
38 / December 18, 2007

Milling & Baking News

Western points
42.85 @43.85
43.22 @44.22
43.53 @44.53
43.84 @44.84
44.61 @45.36
44.88 @45.63
45.09 @45.84

- Change from - Year
Dec. 14 Dec. 7 Nov. 30 ago
Soybean oil,
Decatur
44.00
Loose lard, Chicago 34.00
Edible tallow,
Chicago
36.50
Cottonseed oil,
Miss. PBSY
64.75
Palm oil, ports
47.00
Palm kernel oil,
ports
57.00
Coconut oil
53.00
Peanut oil,
Southeast
101.00
Corn oil, Decatur
61.00
Sunflowerseed oil,
Midwest
88.00
Canola oil, Midwest 57.75

+.25
-.75

-.25
-1.00

27.50
22.50

-.50

-1.00

22.75

-1.50
-.25

-2.00
-1.50

30.00
29.50

-.50
-.50

-1.50
-.50

41.00
35.00

-
-.25

-
+.50

53.00
28.50

-
-

-2.00
-.50

55.00
38.00

bakingbusiness.com / world-grain.com

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Milling & Baking News - December 18, 2007

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