Milling & Baking News - April 8, 2008 - 57

Ingredient Week

Sweeteners

The status of the sweetener market
drew sharply different interpretations
from buyers and sellers last week. Business was limited and prices were mainly
unchanged.
Proponents of a bullish outlook on
sugar drew attention to the U.S. Department of Agriculture Prospective Plantings report that indicated 2008 crop sugar beet planted area would be down 11%
from the prior year and the smallest since
1985. Some sellers predicted this could
mean a 500,000-ton (raw value) decrease
in beet sugar production. Responding to
suggestions genetically modified seed
might be an offset, some processors said
that would require individual beets "as
large as basketballs."
Sellers underscored widespread wet
and cold conditions in the major sugar
beet growing areas this spring. While
cooperatives asked producers to augment acreage in the past under similar
conditions, given the attractive prices
for alternate crops, this was not likely
this year. Sources predicted the beet
sugar industry would delay harvest this
fall for as long as possible, suggesting a
potential for tightness.
The availability of large sugar block
stocks could allow reduced plantings
without the loss of customers, depending on future U.S.D.A. moves. Some
sources also pointed to plans for a new
refinery in Louisiana capable of pro-

Beet and cane sugar

ducing 1 million short tons, raw value,
annually, offsetting beet cuts, although
the new facility will not be operational
before mid-2010.
Mexico has produced to date for
2007-08 3,553,147 tonnes of semi-refined
standard sugar, up 210,243 from a year
ago. But, Mexican offers were routine.
A major seller hiked new crop offers by
1c a lb last week with the Midwest market mostly at 27@27½c f.o.b. This was up
3c in the past 120 days. Still, some buyers said they booked new crop Southeast
business through the first quarter of 2009
at under 26c f.o.b. Other beet sugar processors were withdrawn or offered new
crop at much higher levels.
Faced with these considerations, most
buyers were sitting out the current market. Some sellers said they booked only
5% of their potential. Others booked a
significant share but mostly at lower
prices.
Most beet processors were sold out for
the remainder of 2007-08 (through Sept.
30) except for a small quantity held back
for emergency needs. Bulk refined sugar
prices for the current year were steady.
Midwest beet sugar was at 28@29c a lb,
f.o.b., with refined cane sugar holding
at 29½c in the East and Florida. Refined
cane sugar was offered at 29@30c a lb in
the South and at 30c in the Southeast.
West coast prices were 30@30½c f.o.b.
Corn sweetener markets remained
quiet and shipments were seasonal. MBN

Bakery Shortening

Bookings of bakery shortening were
limited last week. Price changes were
irregular.
Soybean oil prices advanced. Soybean
oil futures prices were stronger on brisk
demand and a downward revision in the
U.S. Census Bureau's February stocks estimate. U.S. soybean oil export shipments
continued at a crisp pace with an Argentine farmers' strike resulting in extra demand for U.S. supply. Export sales of U.S.
soybean oil in the week ended March 27
totaled 55,800 tonnes. The U.S. Census Bureau revised downward its estimate of soybean oil stocks (crude and refined) at the
end of February to 3,076,292,000 lbs from
3,101,491,000 lbs previously. Stocks were
down 158,158,000 lbs from February 2007.
The cash basis on soybean oil firmed.
Smaller soybean oil buyers put on coverage through the summer, but major users held off and awaited further market
developments. It was estimated AprilJune coverage was about 50% completed
with basis coverage for the quarter about
80% of the potential.
Price changes of no-trans vegetable
oils were mixed. Lard and edible tallow
prices declined.
The U.S. Department of Agriculture on
March 31 indicated U.S. farmers intend
to plant 74,793,000 acres to soybeans this
spring, up 18% from last year's planted
area but shy of the record 75,522,000
acres planted in 2006. 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
Apr. 4
Mar. 28 Mar. 21 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Apr. 4
Year ago
Midwest beet 28.00 @ 29.00
-
-
25.00
19.875 East
18.875
21.875 net
173/8@ 175/8 143/8@ 145/8
31.35@33.35
Pacific beet
30.00 @ 30.50
-
-
27.50 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
29.40 @ 29.50 -.10
-.05 27.50 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 6.75c 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
April-June
July-September
October-December
January-March
April-June

Apr. 4
20.40
20.40
20.50
21.00
21.00
21.00

- Change from -
Mar. 28 Mar. 21
-.10
-.05
-.10
-.05
-
+.05
-
-.05
-.05
+.10
-.10
-.05

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

Year
ago
21.00
21.00
20.90
20.90
21.10
21.20

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Apr. 4
- Change from -
Delivery
close
Mar. 28
Mar. 21
May
56.61
+1.63
+2.21
July
57.25
+1.55
+2.11
August
57.55
+1.57
+2.17
September 57.65
+1.47
+2.15
October
57.65
+1.50
+2.20
December 58.25
+1.62
+2.42

Edible oils
Bulk, cents per lb
Year
ago
32.42
32.93
33.18
33.42
33.62
34.04

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
April
54.11 @54.36
May
54.11 @54.36
June
54.43 @54.68
July
54.75 @55.00
August
55.05 @55.30
September
55.15 @55.40
October
55.15 @55.50
46 / April 8, 2008

Milling & Baking News

Western points
53.61 @53.86
53.61 @53.86
53.93 @54.18
54.25 @54.50
54.55 @54.80
54.65 @54.90
54.65 @54.90

Apr. 4
Soybean oil,
Decatur
54.25
Loose lard, Chicago 46.00
Edible tallow,
Chicago
46.50
Cottonseed oil,
Miss. PBSY
77.50
Palm oil, ports
65.00
Palm kernel oil,
ports
72.50
Coconut oil
70.00
Peanut oil,
Southeast
101.50
Corn oil, Decatur
89.25
Sunflowerseed oil,
Midwest
93.00
Canola oil, Midwest 69.00

- Change from - Year
Mar. 28 Mar. 21 ago
+1.25
-.25

+.25
-

30.50
33.50

-1.00

-4.75

25.00

+1.50
-1.00

-
+.25

34.25
34.00

-1.25
-3.50

-.25
-3.50

43.50
37.00

-
-

51.00
30.75

-2.00
+1.00

-2.00
-

51.50
39.00

bakingbusiness.com / world-grain.com

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

Milling & Baking News - April 8, 2008

Table of Contents for the Digital Edition of Milling & Baking News - April 8, 2008