Milling & Baking News - December 30, 2008 - 36

Ingredient Week

Sweeteners

Corn sweetener bookings for 2009
were largely concluded last week. Business was finalized in a range of 1@2c a
lb over 2008 contract levels. This was
down from the 3½c hike announced by
most processors weeks ago. The late
erosion reflected increased competition.
Stiffening buyer resistance was an uncertain outlook for end user businesses.
The Food and Drug Administration's
approval of new natural sweeteners
and some movement away from corn
sweeteners to sugar also were factors.
There earlier was speculation some
prospective buyers might hold out past
Jan. 1 for lower pricing. The trade confirmed that in recent weeks individual
bookings occurred at unchanged levels and a few at lower prices, but these
were exceptions. Also driving pre-holiday bookings were growing indications
corn prices already had seen their bottom.
The sugar market was quiet. Material
was offered across the country at levels equivalent to 35c f.o.b. Trading was
negligible. Participants continued to estimate buyers already had covered 70%
to 90% of potential 2008-09 business.
Sellers acknowledged there were significant accounts yet to be contracted
and a number of sellers admitted they
had sugar for 2008-09 yet to be booked.
Contrasting scenarios for sugar availability this summer and fall accounted

Beet and cane sugar

for the late resistance. Recent U.S. Department of Agriculture statistics for
the U.S. market appeared to support the
outlook for sugar tightness late in the
current marketing year.
According to the latest supply/demand report, 2008-09 Mexican ending
stocks were projected down to 1,033,000
tonnes, raw value, in December, off
more than 300,000 tonnes from 1,355,000
tonnes reported only a month earlier.
The change reflected new downward
revisions in 2008-09 beginning stocks.
The reduction prompted one U.S. source
to speculate whether U.S. sugar might
move to Mexico this summer.
U.S. market bears observed the Mexican stocks decrease was offset by sizable high fructose imports from the U.S.
There was speculation U.S. corn sweetener producers might expand sales into
Mexico. Other sources countered Mexican anti-dumping regulations might
create problems in that respect. MBN

Bakery Shortening

Bookings of bakery shortening were
light to lacking during the holiday
week. Price changes were mixed.
Soybean oil prices moved up as soybean oil futures prices advanced and the
cash basis on soybean oil held unchanged,
though it was noted the range of basis
quotes for eastern Illinois was wide, with
the quote used in pricing on this page constituting the high end of the range.

Crude oil prices continued to struggle and held at around $35 a barrel.
One merchandiser pointed out soybean
oil pricing seemed to dissociate itself
somewhat from movements in crude
oil pricing in recent weeks and asserted
a firmer link between the two markets
would suggest soybean oil futures closer to 24c or 25c a lb than the current 31c.
The merchandiser posited two scenarios
for early next year both of which would
reflect reestablishment of a closer link
between soybean oil and crude oil price
movements. The first would have soybean oil prices declining in relation to
current crude oil prices, and the second
crude oil prices advancing in relation to
current soybean oil prices. Of the two
scenarios, he suggested the first was
likelier. Linkage between soybean oil
and crude oil pricing was based on the
use of soybean oil in the manufacture of
biodiesel.
Going into the winter holidays, soybean oil users were comfortable with
January-March coverage, which was
nearly solid.
Palm oil prices remained under
pressure as recently expanding export
demand failed to offset the impact of
mounting stocks because of record production in Malaysia and Indonesia.
The premium asked for canola oil relative to soybean oil futures prices narrowed to 6¼c a lb under the weight of a
record Canadian canola crop. 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
Dec. 26
Dec. 19 Dec. 12 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Dec. 26
Year ago
Midwest beet 35.00 @ 38.00
-
-
24.50
23.375 East
22.375
25.375 net
183/8@ 193/8 173/8@ 175/8
34.85@36.85
Pacific beet
35.00 @ 38.00
-
-
26.00 Midwest
24.925 Midwest
23.925
26.925 net
33.85@35.85
Cane*
35.05 @ 35.10 +.10
-
26.45 Northeast 19¾@ 20¾ 18¾@ 19
25.125 West
24.125
27.125 net
Southeast 197/8@ 207/8 187/8@ 191/8
36.85@38.85
*Spot raw plus 7% plus 13c with 2% cash discount.
24.625
23.625
26.625 net
Southwest 19½@ 20½ 18½@ 18¾
Raw cane
25.325
24.325
27.325 net
West
203/8@ 213/8 193/8@ 195/8
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
January-March
April-June
July-September
October-December
January-March

- Change from -
Dec. 26 Dec. 19 Dec. 12
19.95
+.10
-
19.95
+.10
-
20.50
+.10
-
20.70
-.05
-.25
20.90
+.15
-.05
20.90
+.15
-.05

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

Year
ago
20.40
20.40
20.45
20.80
21.05
20.80

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Dec. 26
- Change from -
Delivery
close
Dec. 19
Dec. 12
January
32.82
+2.22
+1.90
March
33.12
+2.21
+1.84
May
33.43
+2.18
+1.79
July
33.72
+2.12
+1.74
August
33.90
+2.12
+1.74
September 34.07
+2.11
+1.73

Edible oils
Bulk, cents per lb
Year
ago
48.83
49.67
50.32
50.80
50.90
50.70

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
December
30.57 @31.32
January
30.57 @31.32
February
30.72 @31.47
March
30.87 @31.62
April
31.03 @31.78
May
31.18 @31.93
June
31.33 @32.08
36 / December 30, 2008

Milling & Baking News

Western points
29.82 @30.32
29.82 @30.32
29.97 @30.47
30.12 @30.62
30.28 @30.78
30.43 @30.93
30.58 @31.08

- Change from - Year
Dec. 26 Dec. 19 Dec. 12 ago
Soybean oil,
Decatur
Loose lard, Chicago
Edible tallow,
Chicago
Cottonseed oil,
Miss. PBSY
Palm oil, ports
Palm kernel oil,
ports
Coconut oil
Peanut oil,
Southeast
Corn oil, Decatur
Sunflowerseed oil,
Midwest
Canola oil, Midwest

31.25
23.00

+2.25
-

+2.00 46.50
-
32.75

20.00

+2.00 35.00

34.75
30.75

+2.25
-.25

+1.75 68.75
-3.25 49.25

39.00
41.00

+.50
-

-.25
-2.25

61.50
53.25

83.00
32.75

-
-

-2.00
-.50

96.00
60.75

42.00
39.00

-
+2.00

-
85.00
+1.50 65.25

bakingbusiness.com / world-grain.com

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

Milling & Baking News - December 30, 2008

Table of Contents for the Digital Edition of Milling & Baking News - December 30, 2008