Milling & Baking News - July 29, 2008 - 39

Ingredient Week

Sweeteners

Trading slowed in sugar markets last
week as cane sugar prices were raised to
the same level as beet sugar prices.
When beet processors raised prices
to 38@40c a lb in early July, cane refiners held sugar prices at 35c, prompting
heavy trading in cane sugar for a couple
of weeks. But with cane sugar prices rising to 40c a lb for spot through September 2009, trading in cane halted. While
beet processors mostly were sold out of
potential 2008-09 production, cane sugar
sales lagged. But recent activity pushed
cane sales to levels high enough refiners
were ready to ration sales for next year.
Beet sugar still was priced at 38@40c
a lb f.o.b. Midwest and 40c Southeast
through September, or the remainder
of the 2007-08 marketing year. Beet and
cane prices were mostly 40c a lb nationwide for the next marketing year beginning Oct. 1.
Although processors had some beet
sugar to sell for the current year after
the U.S. Department of Agriculture increased marketing allotments on July 10,
they were comfortable with supply and
unwilling to discount prices since stocks
could be carried into the next marketing year with the prospect of this year's
much smaller sugar beet crop.
While harvested acres were expected to
be down 18% from 2007, U.S. sugar beet
crops were progressing after a late start,
although conditions slipped slightly last

Beet and cane sugar

week. Rated good to excellent on July 20
was 86% of the crop in North Dakota, up
from 84% a week earlier (10% rated fair),
64% in Minnesota, down from 65% (34%
fair), and 63% in Colorado, down from
70% (27% fair), the U.S.D.A. said.
Buyers again met with the U.S.D.A. to
push for an increase in the refined sugar
import quota, citing tight supplies and
high prices. Sellers suggested the buyers' main concern was price since supply
was tight but adequate to get through
the year. Even if the import quota is
increased, traders predicted little price
relief because only limited additional
refined imports are available before the
end of the 2007-08 marketing year.
Mexican sugar continued to flow into
the U.S. but appeared to offer little price
or supply relief. Several theories were expressed about why Mexico hasn't taken
advantage of the price jump in the U.S.
The corn sweetener market was
seasonally quiet. Although still well
above year-ago levels, corn prices have
dropped more than 25% since the end of
June, which could temper the anticipated
size of corn sweetener price hikes when
2009 contract negotiations begin. MBN

Bakery Shortening

Bookings of bakery shortening expanded last week. A weaker tone was
evident in pricing of all ingredients except for lard, which was unchanged.
Soybean oil prices dropped sharply.

Soybean oil futures tumbled along with
the rest of the soy complex. Favorable
weather across most of the U.S., slumping corn futures and the recent retreat
in crude oil prices exerted a downward
pull. Cash offers on soybean oil varied
but generally were little changed from
the previous week.
The U.S. Census Bureau indicated
soybean oil stocks declined in June after
rising in May. End-of-June soybean oil
stocks were estimated at 2,894 million
lbs, down from 2,979 million lbs in May
and compared with 3,357 million lbs in
June 2007. Soybean crush in June was
estimated at 140,907,158 bus, down from
152,636,707 bus in May and compared
with 148,686,380 bus in June 2007.
Soybean oil buyers took advantage of
the dip in pricing to fill gaps in AugustSeptember coverage. Buyers inquired
about fourth-quarter 2008 and firstquarter 2009 pricing, but consummated
little business for those periods. Buyers
were reluctant to extend contract balances further forward than 60 days, in fact,
coverage for most didn't extend beyond
45 days. Basis-only coverage was pretty
solid through the end of the year.
Bookings of canola oil picked up as
prices dropped. Canadian canola acreage was up and crop conditions were
very good.
Palm oil prices slumped as already
burdensome stocks in Indonesia and
Malaysia continued to grow. 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
July 25
July 18 July 11 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
July 25
Year ago
Midwest beet 38.00 @ 40.00
-
-
26.00
19.875 East
18.875
21.875 net
173/8@ 175/8 143/8@ 145/8
31.35@33.35
Pacific beet
38.00 @ 40.00
-
-
28.00 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
39.95 @ 40.00 +4.95 +5.45 30.00 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 13.25c 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
July-September
October-December
January-March
April-June
July-September

- Change from -
July 25 July 18 July 11
24.25
-
+1.70
24.25
-
+1.70
23.25
-.20
+.70
23.00
-.30
+.45
23.15
+.15
+.60
23.25
+.25
+.70

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

Year
ago
22.80
22.80
21.40
21.10
21.25
21.35

Chicago soybean oil futures
Bulk in tank cars, cents per lb
July 25
- Change from -
Delivery
close
July 18
July 11
August
59.17
-2.92
-5.46
September 59.48
-2.98
-5.50
October
59.81
-3.01
-5.52
December 60.45
-3.05
-5.57
January
60.93
-3.06
-5.58
March
61.47
-3.01
-5.50

Edible oils
Bulk, cents per lb
Year
ago
36.76
37.03
37.28
37.82
38.15
38.40

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
July
57.17 @57.42
August
57.17 @57.42
September
57.48 @57.73
October
57.81 @58.06
November
58.13 @58.38
December
58.45 @58.70
January
58.93 @59.18
40 / July 29, 2008

Milling & Baking News

Western points
56.42 @56.67
56.42 @56.67
56.73 @56.98
57.06 @57.31
57.38 @57.63
57.70 @57.95
58.18 @58.43

- Change from - Year
July 25 July 18 July 11 ago
Soybean oil,
Decatur
57.25
Loose lard, Chicago 54.50
Edible tallow,
Chicago
49.50
Cottonseed oil,
Miss. PBSY
82.00
Palm oil, ports
56.50
Palm kernel oil,
ports
64.50
Coconut oil
78.50
Peanut oil,
Southeast
110.00
Corn oil, Decatur
80.50
Sunflowerseed oil,
Midwest
95.00
Canola oil, Midwest 69.50

-3.00
-

-5.50
-

34.25
38.25

-.50

-2.50

35.00

-3.00
-3.50

-5.00
-5.00

42.25
42.75

-4.50
-5.50

-5.50
-6.50

51.75
46.25

-
-1.00

-
-3.50

70.00
38.75

-2.00
-3.50

-4.00
-5.50

65.00
44.25

bakingbusiness.com / world-grain.com

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

Milling & Baking News - July 29, 2008

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