Milling & Baking News - May 19, 2009 - 50

Ingredient Week

Soy Products

Soy flour sales were steady last week.
Prices advanced sharply, in part due to
stronger basis levels on cash soybean
meal. Most sales were month-to-month,
although some processors encouraged
buyers to book at least through old crop
because of expected tight summer soybean supplies. Lead time to deliver new
orders was three weeks or more.
Carryover of U.S. soybeans on Sept. 1,
2010, was projected at 230 million bus, up
100 million bus, or 77%, from the current
year, the U.S. Department of Agriculture
said in its initial 2009-10 World Agricultural Supply and Demand Estimates report
last week. Carryover on Sept. 1, 2009, was
cut 21% from April, to 130 million bus.
The U.S.D.A. projected 2009 soybean
production at 3,195 million bus, up 8% from
2008. Soybean crushings in 2009-10 were
projected at 1,675 million bus, up 35 million
from 2008-09, and exports were projected at
1,260 million bus, up 20 million bus.
The average farm price of soybeans was
projected to range from $8.45 to $10.45 a
bu compared with $9.85 this year.
Old crop soybeans moved higher and
soybean meal sharply higher as the market sought to ration demand of shrinking
supplies. The WASDE report confirmed
tight supplies for the rest of 2008-09 as
the result of an estimated 5-million-bu
increase from April in crushings and
a 30-million-bu increase in exports,
coupled with smaller South American
production. Improved planting weather
trimmed gains on Friday.
Soybean planting was 14% completed
in 18 major states as of May 10 compared
with 25% as the 2004-08 average, the
U.S.D.A. said. No soybeans had been
planted in Illinois (28% as average). MBN

Chicago corn and soy futures
Corn Futures
$ per bu
July
September
December
March
May
July
Soybeans
July
August
September
November
January
March
Soybean Meal
July
August
September
October
December
January

Corn meal sales were steady to stronger last week. Prices declined. Some mills
noted improved demand for large flaking
grits from breakfast cereal makers and for
finer extrusion grits from snack manufacturers. Mills ran five to six days.
In its initial forecast for 2009-10, the
U.S. Department of Agriculture projected the U.S. corn carryover on Sept.
1, 2010, at 1,145 million bus, down 28%
from 1,600 million bus in 2009. The number was below trade expectations.
Corn production was forecast at 12,090
million bus, down 11 million bus from
2008, based on expected lower plantings.
Feed and residual use in 2009-10 was
projected at 5,250 million bus, down 100
million bus from 2008-09. Food and seed
use was projected at 1,310 million bus, up
20 million bus from the current year. The
use of corn to make ethanol was forecast
at 4,100 million bus, up 350 million from
2008-09, and exports were projected at
1,900 million bus, up 150 million bus.
The average farm price of corn in 2009-10
was projected to range from $3.70 to $4.50 a
bu compared with $4.10@4.30 this year.
Corn futures prices posted slim losses,
supported by bullish numbers from the
U.S.D.A. and ongoing concern about
weather-delayed planting most of the
week before turning lower on forecasts
of improved planting weather on Friday.
Although some yield potential would be
sacrificed, farmers may plant corn into
early June before switching to soybeans
becomes a must. Farmer selling of old
crop corn provided offsetting pressure.
Corn planting in the 18 major states was
48% completed as of May 10, even with
last year but behind 71% as the prior fiveyear average, the U.S.D.A. said. Planting

Oats

Bookings of food grade oat flakes were
steady. Prices were unchanged. Some
buyers booked needs through September, adding to what was generally light
coverage through old crop.
U.S. oats were 80% planted as of May
10 compared with 89% as the five-year
average for the date with 60% emerged
compared with 65% as the average. Planting in Canada was slightly behind with
emergence slowed by cool weather. MBN

Rice

Long-grain and medium-grain milled
rice prices were steady last week, but
prices of other classes along with byproducts were mostly lower. U.S. Department of Agriculture 2008 crop world
milled rice prices were unchanged.
The carryover of rice on Aug. 1, 2010,
was projected at 39.2 million cwts, up
69% from 23.2 million cwts this year, the
U.S.D.A. said in its initial supply and use
forecasts for 2009-10. U.S. rice production was projected at 224 million cwts,
up 10% from 2008. The average farm
price was projected to range from $10.50
to $11.50 a cwt, well below $15.75@16.25
in the current year.
Rough rice futures ended lower as
bearish U.S.D.A. numbers combined
with already-weak demand.
Rice planting as of May 10 was 69%
completed in the six major states. MBN

Rice

Defatted, f.o.b. Midwest plant, $ per cwt
- Change from -
May 15
May 8
May 1
Soy flour
Bulk
23.83 @ 24.96 +1.27@+1.39 +.65 @+1.36
Sacked
24.83 @ 26.96 +1.27@+1.39 +.65 @+1.36

-3¾
-2¾
-1¼
-1½
-2
-2¾

+3½
+4¼
+5¼
+4
+2¾
+1½

5.91
6.03½
6.16¾
6.29¼
6.37¼
6.44½

+19
+11½
+1¾
-3¾
-4
-6½

+39½
+26
+12¼
+4¾
+4¾
+1½

13.78
13.77¼
13.59¼
13.49¼
13.61¾
13.71¾

Chicago, bulk
Chicago, sacked
New York, bulk
New York, sacked

+16.70
+14.40
+12.20
+11.20
+8.60
+7.30

+16.20
+11.90
+9.40
+8.70
+4.10
+1.80

350.00
350.50
345.00
334.00
332.70
333.50

Minneapolis
May 15
Food grade flakes, f.o.b.,
bagged, $ per cwt
22.50@23
Milling quality oats, No. 2 heavy,
$ per bu
2.38
Oat hulls, $ per ton
25@35

bakingbusiness.com / world-grain.com

was 10% completed in Illinois (84% as
the average), 11% in Indiana (70%) and
22% in Ohio (68%) compared with 81% in
Iowa (76%), 81% in Minnesota (69%) 78%
in Nebraska (70%). The corn crop was
14% emerged as of May 11, behind 28%
as the 2004-08 average for the date. MBN

Soy products

- Change from - Year
May 15
May 8 May 1
ago
4.17¼
4.26¾
4.38½
4.49
4.56¼
4.63¼
$ per bu
11.30½
10.85
10.23¼
9.75¾
9.78½
9.74½
$ per ton
358.20
339.20
319.20
296.70
288.10
284.30

Corn Products

Corn meal
$ per cwt
May 15
14.35@ 18.37
16.12@ 20.20
16.02@ 20.10
18.44@ 22.49

- Change from -
May 8
May 1
-.08@-.25 +.07@+.33
-.08@-.25 +.07@+.33
-.08@-.25 +.07@+.33
-.08@-.25 +.07@+.33

Oats
- Change from -
May 8
May 1
-

+50c

+2c
-

+21c
-

Offers f.o.b. mills, $ per cwt, bagged
- Change from - Year
Cash
May 15
May 8 May 1 ago
Long grain
24.50@30
-
-
40
Medium grain 44.50@45
-
-
36
Parboiled
27@32
-0.50
-0.50
47
Second
heads, bulk
19@21
-1
-1
26
Brewers
18@19
-0.50
-0.50
25
f.o.b. mills, $ per ton
Rice millfeed
35
-
-3
52
Rice bran
80@100
-10
-20
110
Rice hulls
10
-
-
32
U.S.D.A. 2008 crop world price milled - $ per cwt
Long grain
18.45
-
-0.26 29.27
Medium/short
grain
18.20
-
-0.27
...
Broken
12.42
-
-0.17 19.70
C.B.O.T. rough rice futures - $ per cwt
July
11.93½
-0.71½ -1.30½ 20.07
September
12.03
-0.17
-0.45 18.75
November
12.13
-0.16½
-0.37 18.75
January
12.38½
-0.11½
-0.35 19.10
Milling & Baking News

May 19, 2009 / 51

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

Milling & Baking News - May 19, 2009

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