Milling & Baking News - January 29, 2008 - 41

Ingredient Week

Sweeteners

Sweetener markets remained seasonally quiet last week. Refined sugar prices were unchanged. Raw values continued to slip, with nearby down 10 points
and deferred unchanged to off 10. Corn
sweetener markets were quiet.
Midwest refined bulk sugar prices
were unchanged in thin trading. Some
processors still saw pressure from ample supplies while others maintained
values were steady and indicated they
would not sell below 25c a lb f.o.b. Midwest. Based on limited recent trading,
refined beet sugar was at 24@24½c a lb
f.o.b. Midwest. Southeast prices were
steady with beet sugar at 25½@26c a lb
and with cane offered around 26c. West
coast markets were near 26c a lb f.o.b.
Prices in the Northeast ranged from
26½ to 27c a lb.
Neither buyers nor sellers indicated
much desire to trade, with most comfortable with the amount of sugar booked
for the year. Beet processors indicated
they have sold 90% to 95% of potential
production with cane refiners' sales
slightly below that mark. With sugar
prices near forfeiture levels, sellers saw
little downside price potential, and with
ample supply and potential Mexican
shipments, buyers expected limited upside price movement. Most agreed there
was little likelihood for increased trading before the International Sweetener
Colloquium in mid-February.

Beet and cane sugar

Traders indicated trade with Mexico
was quiet. Reports from Mexico indicated many all cane refineries were operating as the harvest approached its
peak. The delay in the harvest, which
resulted from a strike by growers over
pricing, may have trimmed 200,000
tonnes from potential 2007-08 Mexican
production. Through Jan. 19, production of semi-refined standard sugar
from the new crop was down about 8%
from the same period a year ago, trade
sources said.
In other news, a lawsuit was filed
in the U.S. last week in an attempt to
block release of bioengineered sugar
beet by Monsanto Co. The suit, filed by
the Center for Food Safety, the Sierra
Club and two organic seed groups,
challenged the U.S. Department of
Agriculture's approval of Monsanto's
glyphosate-resistant seed, which may
withstand treatment of Roundup herbicide, on fear of environmental contamination. The seed was expected to
be used on a large scale for the first
time this year.
Activity in New York world sugar
futures (sugar 11) calmed last week after prices recently topped 13c a lb and
reached 15-month highs. MBN

Bakery Shortening

Bookings of bakery shortening expanded last week. Price changes were
irregular.

Soybean oil prices declined, tugged
downward by a combination of lower
soybean oil futures prices and a weakening cash basis. The break in soybean
oil futures prodded soybean oil users
to complete bookings through March.
Many earlier booked basis only for
the quarter and were waiting for just
such a drop in futures prices. After the
flurry of activity, oil coverage was solid
through the first quarter.
Most soybean oil users held only basis-only coverage for April-June. It was
estimated basis-only coverage for that
quarter was 70% completed. But users
held back from booking basis-only for
July-September, the last quarter of the
marketing year, because cash offers
were as much as 200 points higher than
those for the nearby.
The U.S. Census Bureau estimated
December soybean crush at 162.4 million bus, up from 155.7 million bus in
November. Soybean oil stocks at the
end of December were pegged at 3,030
million lbs, down from 3,044 million
lbs in November.
Cottonseed oil, corn oil, sunflowerseed oil and peanut oil offers were
nearly absent because of tight supplies, with most material moving only
to meet contractual obligations.
Palm oil prices followed the soybean
oil market lower. December exports for
Malaysia were lower than November,
which provided additional pressure. MBN

Sweeteners
Delivered basis, cents per lb
42% HFCS spot price1

f.o.b. plant, cents per lb

HFCS list price2
Regular
- Change from - Year
corn
Jan. 25
Jan. 18 Jan. 11 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Jan. 25
Year ago
Midwest beet 24.00 @ 24.50
-
-
25.50
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
-
-
28.00 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
26.15 @ 26.20 -.10
-.25 28.60 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 4.20c 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 -
Jan. 25 Jan. 18 Jan. 11
20.05
-.10
-.30
20.05
-.10
-.30
20.20
-
-.15
20.55
-
-.15
20.90
-
+.05
20.75
-.10
-.05

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

Year
ago
20.15
20.15
20.00
20.05
19.90
20.15

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Jan. 25
- Change from -
Delivery
close
Jan. 18
Jan. 11
March
52.01
-1.13
-.65
May
52.72
-1.07
-.44
July
53.27
-1.04
-.49
August
53.52
-1.01
-.47
September 53.57
-1.13
-.63
October
53.52
-1.26
-.48

Edible oils
Bulk, cents per lb
Year
ago
29.00
29.48
29.95
30.12
30.29
30.48

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
January
48.76 @49.01
February
48.76 @49.01
March
48.76 @49.01
April
49.37 @49.62
May
49.72 @49.97
June
50.00 @50.25
July
50.27 @50.52
42 / January 29, 2008

Milling & Baking News

Western points
48.01 @48.51
48.01 @48.51
48.01 @48.51
48.62 @49.12
48.97 @49.47
49.25 @49.75
49.52 @50.02

- Change from - Year
Jan. 25 Jan. 18 Jan. 11 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

49.00
35.00

-1.25
+1.50

-.25 27.50
+1.75 23.00

40.00

+1.50

+4.25 24.00

72.00
55.00

-1.25
-.75

-
31.00
+4.00 30.50

62.50
62.75

-1.75
-

+1.50 42.00
+9.00 35.00

99.00
69.50

-
+2.00

+3.00 48.00
+6.75 30.00

90.00
64.00

-5.00
-1.25

-
-1.25

bakingbusiness.com / world-grain.com

56.00
39.00

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - January 29, 2008

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