Milling & Baking News - June 17, 2008 - 52

Ingredient Week

Sweeteners

Business in sugar remained light last
week with pricing generally stable. At
the same time, there were hints some
regional buyers were pressing sellers for
quotes covering plants over a wide area.
Yet other users remained on the sidelines
with no hint of any immediate interest.
Northeast sellers underscored an
improved pace in overall coverage in
contrast to the virtual standstill that prevailed only a few weeks ago. Still, many
other traders reported business was
minimal if not nil.
Midwest beet sugar for 2008-09 (October-September) and for the 2009 calendar year was offered at 30@33 a lb, f.o.b.
Processors offered new crop at 31@32c
Gulf, 31c Florida and 31½@33c Northeast. West coast was 31½@32½c. Midwest processors hiked "minimum" spot
levels to 31½c f.o.b., while others continued to ask 33c for nearby supply. Nearby
Northeast was up to 31½c. Some quoted
sugar for spot and the balance of the
year at about the same levels. But some
buyers continued to point to significant
discounting from current quotes despite
other market factors.
Developments from Mexico were
lacking. Participants acknowledged a
considerable quantity of Mexican sugar
continued to enter the U.S. but without
much impact on pricing.
In the sweetener market, corn products
remained inactive with prices mainly

Beet and cane sugar

unchanged. Attention was riveted on
new historic highs in corn prices. Sweetener producers acknowledged continuation of the current trend must lead to
"significant" price hikes in high fructose
corn syrup and other corn sweeteners for
2009. Some observers predicted advances might amount to 4@6c a lb, although
producers were mainly silent on pricing.
Whether advances of this magnitude
would prompt increased sugar use was
a matter of speculation.
Problems with the sugar beet and
corn crops attracted attention. The U.S.
Department of Agriculture in its June
WASDE report projected the 2008 corn
crop at 11,735 million bus, down 10%
from 2007 and below projected 2008-09
use of 12,510 million bus. The report and
flooding across the Midwest were factors
driving corn prices to record highs.
The U.S.D.A. last week projected
2008-09 U.S. sugar supply down 63,000
tons, raw value, from May due to lower
beginning stocks. The change left the
stocks-to-use ratio for the end of 2008-09
at 11.8% against 15.9% for the current
year and 17.3% two years ago. MBN

Bakery Shortening

Bookings of edible oil expanded modestly last week. Prices changes were irregular.
Soybean oil prices scored solid gains
reflecting surging soybean oil futures
prices and a firm cash basis. The cash

basis derived support from the perception of tightness during scheduled
downtime for maintenance at key
refineries. Futures prices advanced
in sympathy with the rest of the soy
complex. Stormy weather slowed soybean planting across the Midwest and
floodwaters washed out some recently
seeded fields that may have to be replanted. Soybean oil futures prices
also derived support from new gains
in historic crude oil prices. Basis coverage through September was the rule
in the soybean oil market. Flat coverage on average extended 30 to 45 days.
New bookings were limited mostly to
buyers running out of contract forced
to buy four weeks' supply regardless
of the price.
In contrast, the palm oil market was
weaker. Export demand for palm oil, especially for biodiesel, slackened in recent
weeks leading to a build up in supply
and pressure on pricing.
Corn oil prices slipped as supply not
covered by contracts was temporarily
available to the market. Canola prices
advanced but their premium to soybean
oil futures prices narrowed. Sunflowerseed oil prices remained firm. The North
Dakota sunflower crop was 61% planted
by June 8 compared with 84% as the recent five-year average for the date. The
crop condition was rated 61% good to
excellent and 39% fair.
Meat fats firmed on tightening supply. 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
June 13
June 6 May 30 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
June 13
Year ago
Midwest beet 31.50 @ 33.00
-
+1.50 25.00
19.875 East
18.875
21.875 net
173/8@ 175/8 143/8@ 145/8
31.35@33.35
Pacific beet
31.50 @ 33.00
-
-
27.50 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
31.65 @ 31.70
-
-
27.30 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 8.50c 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
- Change from -
Contract
June 13 June 6 May 30
Nearby
21.05
+.15
+.10
July-September
21.20
+.20
+.30
October-December 21.50
+.15
+.25
January-March
21.60
+.15
+.30
April-June
21.60
+.10
+.25
July-September
21.70
+.10
+.25

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

Year
ago
21.30
21.30
21.10
21.15
21.30
21.45

Chicago soybean oil futures
Bulk in tank cars, cents per lb
June 13
- Change from -
Delivery
close
June 6
May 30
July
66.19
+1.85
+4.88
August
66.52
+1.83
+4.86
September 66.87
+1.83
+4.87
October
67.23
+1.83
+4.93
December 67.90
+1.81
+4.99
January
68.27
+1.85
+5.03

Edible oils
Bulk, cents per lb
Year
ago
35.88
36.12
36.38
36.66
37.17
37.49

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
June
64.69 @65.19
July
64.69 @65.19
August
65.02 @65.52
September
65.37 @65.87
October
65.48 @65.98
November
65.82 @66.32
December
66.15 @66.65
52 / June 17, 2008

Milling & Baking News

Western points
63.69 @64.19
63.69 @64.19
64.02 @64.52
64.37 @64.87
64.23 @64.73
64.57 @65.07
64.90 @65.40

- Change from - Year
June 13 June 6 May 30 ago
Soybean oil,
Decatur
65.25
Loose lard, Chicago 48.00
Edible tallow,
Chicago
48.00
Cottonseed oil,
Miss. PBSY
88.75
Palm oil, ports
63.75
Palm kernel oil,
ports
72.50
Coconut oil
79.00
Peanut oil,
Southeast
107.00
Corn oil, Decatur
86.50
Sunflowerseed oil,
Midwest
100.00
Canola oil, Midwest 77.50

+2.00
+3.00

+4.75 33.75
+5.00 33.00

+3.00

+5.00 35.00

+2.75
-1.00

+5.00 40.25
-.75 42.25

-.50
+5.00

-.50 50.75
+6.00 48.50

+3.00
-1.50

+3.00 62.00
-.50 36.50

-
+1.00

+1.00 54.75
+4.25 43.00

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Milling & Baking News - June 17, 2008

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