Milling & Baking News - March 10, 2009 - 50

Ingredient Week

Soy Products

Soy flour sales were steady to slightly
stronger last week. Prices declined.
Declining soybean meal futures prices
early last week, and consequently lower
soy flour prices, prompted additional
short-term sales and scattered long-term
bookings, including activity through the
end of calendar 2009 in one case. But
ideas soybean product prices had limited upside potential, at least for new crop
because of expected increased soybean
plantings, still discouraged most longterm contracting. Lead time for new orders remained two to three weeks. The
cash soybean meal basis was firm.
Outside economic concerns, especially lower equity markets, continued
to be the primary feature pressuring soy
complex futures and commodities. Adding pressure were prospects of larger
U.S. soybean planted area this year and
a significant slowing in export sales as
foreign buyers seasonally turn to South
America for supply. Although the soybean crop was essentially "made" in
South America, concern about farmergovernment issues in Argentina could
slow exports. Soybean and soybean meal
futures ended modestly lower, with the
widest declines in new crop contracts.
At its recent Agricultural Outlook Forum, the U.S. Department of Agriculture
projected 2009 soybean plantings at a record 77 million acres, up 2% from 2008, and
production at 3,240 million bus, up 9%.
Export sales of U.S. soybeans during the
week ended Feb. 26 were 155,800 tonnes for
2008-09, down 54% from a week earlier, 78%
below the prior four-week average and a
marketing year low, the U.S.D.A. said. Sales
were well below trade expectations. Soybean meal export sales were 117,100 tonnes

Chicago corn and soy futures
- Change from - Year
Corn Futures March 6 Feb. 27 Feb. 20 ago
$ per bu
March
3.52¾
+2
+2½
5.33½
May
3.61½
+2½
+2½
5.47¼
July
3.71
+2½
+2½
5.59
September
3.79¼
+1½
+1½
5.59
December
3.90¾
-¼
+1
5.59¼
March
4.02¼
-1¾
-½
5.66¾
Soybeans
$ per bu
March
8.79
+4½
+16½ 13.41
May
8.67
-5
+3¾
14.08¾
July
8.66
-9
-3¼
14.21
August
8.53
-11½ -10½
14.10
September
8.28
-12
-13
13.55
November
8.15
-12½ -15½
13.11½
Soybean Meal $ per ton
March
274.20
-1.60 +4.20 339.00
May
265.30
-4.50 -1.90
350.30
July
262.00
-5.30 -4.90
353.80
August
257.00
-7.00 -7.50
348.80
September
249.00
-6.70 -8.00
338.80
October
240.80
-6.80 -9.90
317.00
bakingbusiness.com / world-grain.com

in the week, down 20% from a week earlier,
and down 30% from the prior four-week
average but within the range of trade expectations. Soybean sales commitments for
the marketing year to date were 5% ahead
of the same period a year earlier. MBN

Corn Products

Sales of corn meal held steady last week.
Prices advanced slightly. Demand remained
balanced across all grit sizes. Mills operated
on average five days. The cash basis on corn
was firm to stronger to encourage farmer
selling, which increased from a trickle only
when futures prices bounced.
Corn futures prices gyrated daily with
major influences from outside markets, especially equities and crude oil, but ended
the week with old crop up only slightly
and new crop down slightly. Concern
about general economic conditions was an
ongoing pressuring factor. Fundamentals
also were generally negative, especially
concerns about lower feed demand due to
reduced livestock numbers in 2009.
At its recent Agricultural Outlook Forum, the U.S. Department of Agriculture
projected 2009 U.S. corn plantings at 86
million acres, unchanged from 2008, and
production at 12,365 million bus, up 2%,
based on higher yields. Revised 2008-09
supply/demand data will be released
March 11 and 2009 planting intentions
data will be issued on March 31.
Export sales of U.S. corn for 2008-09 in
the week ended Feb. 26 totaled 791,900
tonnes, up 76% from the previous week
but 29% below the prior four-week average, the U.S.D.A. said. Sales were near
the high end of trade expectations. Export sales commitments for the marketing year to date were 43% less than during the same period a year ago. MBN

Oats

Bookings of food grade oat flakes
were steady last week. Prices were unchanged. Sales in the first two months of
the year were below expectations, in part
because buyers trimmed inventory levels because of uncertain demand.
Supplies of milling quality oats were
ample but mostly held on the farm by Canadian producers. Basis levels remained
firm to encourage movement, but any
significant boost in liquidation was not
expected until Canadian farmers make
planting decisions in the next few weeks.
Mill supplies were adequate. MBN

Rice

Milled rice prices were unchanged last
week, except long-grain, which was steady
to $2 a cwt lower. Rice byproduct prices
were unchanged, except bran, which was
steady to $5 a ton lower. U.S.D.A. 2008 crop
world milled rice prices were unchanged.
Rough rice futures prices declined on
pressure from deliveries against the spot
March contract and spillover weakness
from other commodity and financial
markets and general economic concerns.
At its recent Agricultural Outlook Forum, the U.S.D.A. projected 2009 U.S.
rice plantings at 2.93 million acres, down
from 3 million acres from 2008. Production was projected at 206.5 million cwts,
up 1% from 203.7 million cwts in 2008.
Revised 2008-09 supply/demand numbers will be issued this week.
Export sales of U.S. rice during the
week ended Feb. 26 totaled 55,300
tonnes, down 35% from a week earlier
and 13% below the prior four-week average. Marketing year-to-date export sales
commitments were 20% less than in the
same period a year earlier. MBN

Rice

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt
- Change from -
March 6
Feb. 27
Feb. 20
Soy flour
Bulk
19.20 @ 19.77 -.05@ -.22 +.21 @ -.08
Sacked
20.20 @ 21.77 -.05@ -.22 +.21 @ -.08

Corn meal
$ per cwt
March 6
Chicago, bulk
13.00@ 16.83
Chicago, sacked 14.77@ 18.66
New York, bulk
14.67@ 18.56
New York, sacked 17.09@ 20.95

- Change from -
Feb. 27
Feb. 20
+.07@+.05 +.10@+.03
+.07@+.05 +.10@+.03
+.07@+.05 +.10@+.03
+.07@+.05 +.10@+.03

Oats
- Change from -
Minneapolis
March 6 Feb. 27 Feb. 20
Food grade flakes, f.o.b.,
bagged, $ per cwt
21.75@22.25 -
+25c
Milling quality oats, No. 2 heavy,
$ per bu
1.97¾
-11¾c
+4¼c
Oat hulls, $ per ton
25@35
-
-

Offers f.o.b. mills, $ per cwt, bagged
- Change from - Year
Cash
March 6
Feb. 27 Feb. 20 ago
Long grain
25.50@30.00
-
-2.00 26.00
Medium grain 46.00@46.50
-
- 26.00
Parboiled
28.50@37.00
-
-2.00 28.50
Second
heads, bulk 22.00@26.00
-
-2.00 17.00
Brewers
21.00@25.00
-
- 15.00
f.o.b. mills, $ per ton
Rice millfeed
75
-
- 52.00
Rice bran
120@140
-
- 100.00
Rice hulls
30@40
-
- 25.00
U.S.D.A. 2008 crop world price milled - $ per cwt
Long grain
19.38
-
- 18.49
Medium/short
grain
19.13
-
-
...
Broken
13.04
-
- 12.44
C.B.O.T. rough rice futures - $ per cwt
March
12.12
-0.24½ +0.13½ 17.31
May
12.33
-0.28 +0.30½ 17.55
July
12.53
-0.26½ +0.39 17.83
September
11.86
-0.25 -0.19½ 16.69
Milling & Baking News

March 10, 2009 / 51

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Milling & Baking News - March 10, 2009

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