Milling & Baking News - May 20, 2008 - 43

Ingredient Week

Sweeteners

Widespread advances of 1@2c a lb surfaced in sugar pricing last week.
Midwest beet sugar for 2008-09 was offered at 30@33c a lb, f.o.b. One or more
refiners offered new crop at 32c Gulf, 31c
Florida and 33c Northeast or West coast.
Some sugar processors quoted spot and
the balance of this year at these levels or
at a small premium or discount, but nearby Northeast sugar held at 29½c f.o.b.
Strength in part reflected the May 9
U.S. Department of Agriculture WASDE
report that appeared to confirm curtailed
outturn of beet sugar for 2008-09 because
of an 11% cut in acreage indicated in the
March Prospective Plantings report. The
WASDE report projected stocks at the
end of 2008-09 at only 1,336,000 short
tons, raw value, against an estimated
1,757,000 tons at the end of the current
year and 1,799,000 tons in 2006-07. This
represented a stocks-to-use ratio of only
12.4% on Oct. 1, 2009, off from 16.4% this
year and 17.3% on Oct. 1, 2007.
The crop faced problems from a cool,
wet spring and freeze damage, which
necessitated replanting at certain points.
This was expected to delay harvesting
for one to two weeks. Sugar beet planting as of May 11 was 83% completed in
the four major states, behind 94% last
year and 91% as the 2003-07 average.
Late-week strength in raw prices in
part reflected favorable terms for sugar
producers in the new farm bill.

Beet and cane sugar

Given recent developments in other
commodities along with ongoing problems at several cane sugar refineries,
some buyers who resisted coverage until
recently booked the new year. One beet
sugar producer that quoted 32c a lb the
previous week raised its price to 33c and
reportedly booked around 45% of the its
potential. The same seller indicated it
would withdraw this offer at the end of
the week. Another major processor advanced its asking price by 2c, to 30c f.o.b.
in the Red River Valley and 31c in Florida. Other companies, including some
majors, also raised prices. These companies experienced only small to moderate
new crop bookings. Some noted buyers
were eager to book at prior levels but
resisted the latest advances. Still other
buyers sought to negotiate between the
old and new pricing. Others resisted any
coverage around current quotes. Coverage was estimated at around 50% for
next year (beginning Oct. 1, 2008).
The higher numbers suggested opportunities for Mexican sugar, which was
moving into the U.S.
Corn sweetener markets were quiet
and shipments were seasonal. MBN

Bakery Shortening

Quiet persisted in bookings of edible
oil last week. Prices generally were unchanged to lower.
Soybean oil futures prices remained
on a roller coaster, falling significantly

through much of the week in the wake
of extraordinary gains a week earlier and
sizable declines the week before that.
However, late last week soybean oil prices
rallied to end nearly unchanged. Strength
in energy prices with crude oil reaching
new record highs was cited as a principal
driver of the late-week market rally.
With bookings so limited, discerning
market trends was a challenge. Roughly
70% of users earlier covered the basis
through September, and processors tended to encourage others to follow suit. With
several plants expected to close in late
May and early June for scheduled downtime, a tightening of supplies was considered likely. This view that "the basis is
only going to appreciate from here" was
countered by others who counseled, "I
wouldn't be in any rush." The latter view
was based on an expectation that biodiesel
production, which has been underpinned
by shipments to the European Union, was
susceptible to setbacks later in the year.
Flat price buyers appeared to be waiting for dips below 50c a lb, a level that
hasn't been seen in months. While small
bursts of coverage in recent weeks were
completed when prices dipped 2@3c a
lb, it was thought a new break beneath
50c would be needed to trigger a bookings surge.
Changes in individual shortenings
were limited, and trading was light.
Palm oil prices were firm in response to
stepped up export demand. 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
May 16
May 9 May 2 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
May 16
Year ago
Midwest beet 30.00 @ 33.00 +1.00 +1.00 25.00
19.875 East
18.875
21.875 net
173/8@ 175/8 143/8@ 145/8
31.35@33.35
Pacific beet
32.00 @ 34.00 +1.00 +1.00 27.50 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
29.95 @ 30.00 +.35
+.35 27.45 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
May-June
July-September
October-December
January-March
April-June

May 16
20.90
20.90
20.95
21.25
21.20
21.25

- Change from -
May 9 May 2
+.30
+.30
+.30
+.30
+.30
+.30
+.15
+.05
+.10
+.15
+.15
+.15

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

Year
ago
21.40
21.40
21.40
21.00
21.15
21.40

Chicago soybean oil futures
Bulk in tank cars, cents per lb
May 16
- Change from -
Delivery
close
May 9
May 2
July
62.18
+.18
+4.92
August
62.50
+.17
+4.94
September 62.77
+.16
+4.97
October
63.37
+.53
+5.37
December 63.67
+.33
+5.20
January
63.97
+.38
+5.32

Edible oils
Bulk, cents per lb
Year
ago
35.15
35.40
35.66
35.89
36.43
36.70

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
May
60.60 @60.85
June
60.77 @61.02
July
60.93 @61.18
August
61.25 @61.50
September
61.45 @61.70
October
62.37 @62.62
November
62.52 @62.77
44 / May 20, 2008

Milling & Baking News

Western points
59.60 @60.10
59.77 @60.27
59.93 @60.43
60.25 @60.75
60.45 @60.95
61.37 @61.87
61.52 @62.02

May 16
Soybean oil,
Decatur
60.50
Loose lard, Chicago 44.00
Edible tallow,
Chicago
43.50
Cottonseed oil,
Miss. PBSY
83.75
Palm oil, ports
66.00
Palm kernel oil,
ports
74.00
Coconut oil
71.50
Peanut oil,
Southeast
103.00
Corn oil, Decatur
90.00
Sunflowerseed oil,
Midwest
99.00
Canola oil, Midwest 73.25

- Change from - Year
May 9 May 2 ago
+.25
-

+5.00 33.50
-
29.00

-.75

-1.00

+.75
+.75

+5.00 39.00
-.50 40.00

-.25
-1.00

+.50
-1.00

-6.00
-1.00

-2.00 55.00
+1.00 33.00

+4.00
-.50

+4.00 53.00
+3.75 41.50

bakingbusiness.com / world-grain.com

30.50

49.00
38.00

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Milling & Baking News - May 20, 2008

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