Milling & Baking News - September 23, 2008 - 52

Ingredient Week

Sweeteners

Sweetener markets were quiet last
week after the previous week's frenzy
of data and weather activity, although
some catch-up from hurricane delays
continued for cane refiners. Prices were
unchanged.
Raw values declined with the nearby
at a slight inverse to deferred values.
Trade sources indicated shipments of
one or two cargoes of raw cane more than
needed by refiners pressured prices.
Most indicated sugar pricing held
firm at 40c a lb f.o.b. across the country
for spot through 2009, but little business
was completed. Beet processors were out
of old crop sugar and awaited new crop
supply. The only activity evident was
limited to "must-have" business.
Some in the trade indicated pricing
weakened recently as the result of an influx
of refined sugar from Canada and Central
America in addition to regular Mexican
shipments. They cited prices at 35@37c a
lb and indicated they would sell at 35c,
although they agreed trading was slow.
Others maintained the lower pricing was
limited to imports undercutting U.S. prices
and was not representative of the market.
Most 2008-09 sugar business was completed several weeks ago, and most beet
sugar processors were nearly sold out
or had a comfortable percentage of prospective production sold.
The sugar beet harvest was under
way but was still in its early stages. The

Beet and cane sugar

crop as of Sept. 14 was 4% lifted in North
Dakota, 3% harvested in Minnesota and
2% harvested in Colorado, the U.S.D.A.
said. Harvesting in Michigan was delayed by rains. Factories in the Red River
valley were running, and in other areas
plants were being brought on line as the
harvest gained momentum.
Sugar beet crops were in mostly good
to excellent condition. After a slow start
to the growing season in some areas, the
crop benefited from favorable weather.
In fact, some in the trade said the U.S.
Department of Agriculture's September
projection of 2008-09 beet sugar production at 4,000,000 tons, raw value, might
be too low. That number was down
sharply from 4,765,000 tons in 2007-08
due to reduced acreage, but yields and
sugar content were expected to be good.
The Louisiana cane crop improved
slightly after a sharp downgrade two
weeks earlier. The U.S.D.A. as of Sept.
14 rated the crop 19% good (18% a week
earlier), 43% fair (40%) and 38% poor to
very poor (42%). "Sugarcane was lodged
with shredded leaves or broken tops in
some areas of the state," the U.S.D.A.
said. The trade estimated losses at 10%
to 15% in the state.
The corn sweetener market was quiet.
List prices for 2009 contracting were expected after Oct. 1. MBN

Bakery Shortening

Bookings of bakery shortening were

brisk last week. Prices declined.
Soybean oil prices declined. Soybean
oil futures prices slumped with the rest
of the soy complex, but losses were
trimmed by a Friday rally. The spot
cash basis was firm because of a shortage of old crop soybeans to see crushers
through to new crop. The basis dropped
sharply for November-December. Only
distributors seemed to need nearby supply. Bakers, other food processors and
food service companies were largely
unaffected by the spot basis because
they already owned their needs at least
through October. Last week's activity
brought industry coverage for OctoberDecember to about 80% of the potential
and increasingly users were willing to
take initial coverage into 2009.
The weak tone spread across all ingredients. Malaysian and Indonesian palm
oil exports failed to keep pace with rising
production and there were indications
some contracts concluded when prices
were sharply higher might be canceled.
Canola oil prices dropped in sympathy with soybean oil in anticipation of a
record large canola crop in Canada.
Cottonseed oil prices declined
though damage from recent hurricanes
was yet to be quantified. There also
was uncertainty about the Texas peanut crop. Should peanuts have greater
than normal damage, more could be
shipped to processors instead of the
fresh market. 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
Sept. 19
Sept. 12 Sept. 5 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Sept. 19
Year ago
Midwest beet 38.00 @ 40.00
-
-2.00 25.50
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
-
-2.00 27.00 Midwest
21.425 Midwest
20.425
23.425 net
30.35@32.35
Cane*
39.80 @ 40.00 -.15
-0.20 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 14c 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
Sept. 19 Sept. 12 Sept. 5
Nearby
22.90
-.15
-.65
October-December 22.90
-.15
-.65
January-March
22.95
-.15
-.20
April-June
22.95
-.20
-.05
July-September
23.00
-.20
-
October-December 23.00
-.20
-

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

Year
ago
21.40
21.40
20.95
20.90
21.20
21.20

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Sept. 19
- Change from -
Delivery
close
Sept. 12
Sept. 5
October
46.92
-.59
-1.48
December 47.40
-.59
-1.49
January
47.85
-.65
-1.56
March
48.41
-.67
-1.59
May
48.81
-.68
-1.57
July
49.19
-.65
-1.51

Edible oils
Bulk, cents per lb
Year
ago
38.99
39.52
39.84
40.09
40.30
40.50

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
September
46.92 @47.17
October
45.67 @45.92
November
44.41 @44.66
December
44.65 @44.90
January
45.35 @45.60
February
45.63 @45.88
March
45.91 @46.16
52 / September 23, 2008

Milling & Baking News

Western points
44.42 @45.67
43.17 @43.67
43.41 @43.91
43.65 @44.15
44.35 @44.85
44.63 @45.13
44.91 @45.41

- Change from - Year
Sept. 19 Sept. 12 Sept. 5 ago
Soybean oil,
Decatur
47.25
Loose lard, Chicago 45.00
Edible tallow,
Chicago
44.00
Cottonseed oil,
Miss. PBSY
62.00
Palm oil, ports
42.50
Palm kernel oil,
ports
48.25
Coconut oil
57.25
Peanut oil,
Southeast
110.00
Corn oil, Decatur
53.00
Sunflowerseed oil,
Midwest
87.00
Canola oil, Midwest 54.50

-.25
-1.50

-.75
-2.25

-.75

+1.00 32.50

-.50
-2.25

-2.25
-2.75

46.75
41.75

-4.25
-1.75

-4.50
-3.75

51.25
45.75

-
-.50

-
-4.25

73.00
48.50

-1.00
-.25

-1.00
-1.25

70.00
48.00

bakingbusiness.com / world-grain.com

37.50
35.75

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Milling & Baking News - September 23, 2008

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