Milling & Baking News - July 14, 2009 - 36

Ingredient Week 

 Sweeteners

Significant softness emerged in sugar
across the country last week and dominated developments in sweeteners.
Beet and cane sugar for shipment
through September declined 2c a lb in
relatively thin trading. Losses reflected
gradual erosion as some processors
pushed material more aggressively. But
individual sellers did not change their
price, and some processors remained
withdrawn for the rest of the marketing
year. At least one seller quoted spot at
45c f.o.b. a lb, and a second quoted at 40c,
with the latter mostly out of the market.
Forward pricing showed weakness
even though many sellers maintained recent offers. There were no changes for October-December 2009, which continued to
be offered mostly at 35@36c a lb f.o.b.
Most attention was on calendar 2010
with many sellers offering sugar at 35c
a lb f.o.b. Still, traders reported sporadic
contracting for the year at 33c, while others noted individual sellers offered sugar
at 33½c for specific customers.
The trade estimated 2010 bookings
were roughly 50% completed. Reports
of lower prices interrupted coverage to
some extent as prospective buyers reassessed the market. Some held back in
anticipation of the July 10 World Agricultural Supply and Demand Estimates
from the U.S. Department of Agriculture, and some continued to wait for a
U.S.D.A. tariff rate quota increase.

Beet and cane sugar

In the WASDE report, the U.S.D.A. cut
projected 2009-10 sugar ending stocks
by 100,000 tons due to a like reduction
in beginning stocks, reducing the stocksto-use ratio to 3.4%. More changes were
made for 2008-09 with beet production
reduced 110,000 tons, imports raised a
like amount, and domestic food deliveries raised 100,000 tons, leaving ending
stocks down 100,000 tons at 1,102,000
tons and the stocks-to-use ration at 10%.
Mexican interests contacted U.S. suppliers as to the availability of sugar from
the U.S. in the event of a shortage in
Mexico. Traders stressed Mexican sellers
were meeting contractual obligations.
A major Southeast refinery resumed
liquid sugar production but still had not
started dry bulk output.
Red River Valley sources said sugar
beets there would benefit from warmer
weather while producers elsewhere predicted a record crop.
Corn refiners pointed to some seasonal improvement in shipments, although
totals still lagged a year earlier. MBN

 Bakery Shortening

Bookings of bakery shortening expanded last week. Prices of most ingredients weakened.
The cash price of soybean oil dipped below 30c a lb for the first time since March.
Soybean oil futures prices tumbled along
with the rest of the soy complex. The soybean oil cash basis remained weak.

Soybean supply concerns for 2009-10
were eased as the U.S. Department of
Agriculture on June 30 raised its estimate of soybean plantings and adjusted
its supply/demand forecasts for the soy
complex on June 10. The U.S.D.A. raised
its forecast for the carryover of soybeans
on Sept. 1, 2010, to 250 million bus from
210 million bus as its June forecast.
The soybean crush in 2009-10 was
projected at 1,680 million bus, up 5 million bus from June and up 25 million bus
from 1,655 million bus in 2008-09.
Soybean oil ending stocks on Sept.
30, 2010, were projected at 2,480 million
lbs, down 168 million lbs from June and
down 20% from 3,085 million lbs forecast
in 2009. While down from 2008-09, soybean oil stocks were expected to remain
burdensome in 2009-10 and will continue to pressure pricing.
Soybean oil users booked supply aggressively on last week's price break.
At the week's end, flat coverage for the
third quarter increased to 65%. Basis
coverage for the third quarter was virtually complete, and October-December
basis coverage was 70%.
Bakers were among buyers to act decisively in the soybean oil market, with
individual bakers extending soybean oil
coverage through June 2010.
Other oils followed the soybean oil
market with the exception of corn oil,
which was unchanged, and coconut
oil. 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 10
July 2 June 26 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
July 10
Year ago
Midwest beet 35.00 @ 35.50 -2.00
-2.00 38.00
23.375 East
22.375
25.375 net
183/8@ 193/8 173/8@ 175/8
34.85@36.85
Pacific beet
35.00 @ 35.50 -2.00
-2.00 38.00 Midwest
24.925 Midwest
23.925
26.925 net
33.85@35.85
Cane*
35.10 @ 35.15 -1.90
-2.05 34.50 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 10c 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
July-September
October-December
January-March
April-June
July-September

- Change from -
July 10 July 2 June 26
22.80
+.10
+.20
22.80
+.10
+.20
22.85
+.05
+.25
23.10
-
+.10
23.10
-
+.10
23.10
-
+.10

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

Year
ago
22.55
22.55
22.55
22.55
22.55
22.55

Chicago soybean oil futures
Bulk in tank cars, cents per lb
July 10
- Change from -
Delivery
close
July 2
June 26
July
32.70
-2.48
-3.38
August
32.84
-2.50
-3.40
September 32.98
-2.52
-3.41
October
33.14
-2.52
-3.40
December 33.47
-2.55
-3.42
January
33.82
-2.54
-3.41

Edible oils
Bulk, cents per lb
Year
ago
64.48
64.63
64.98
65.33
66.02
66.51

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
July
29.20 @29.70
August
29.34 @29.84
September
29.48 @29.98
October
29.64 @30.14
November
29.81 @30.31
December
29.97 @30.47
January
30.32 @30.82
36 / July 14, 2009 Milling & Baking News

Western points
28.70 @29.20
28.84 @29.34
28.98 @29.48
29.14 @29.64
29.31 @29.81
29.47 @29.97
29.82 @30.32

- Change from - Year
July 10 July 2 June 26 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

29.75
29.50

-2.50
-.75

-3.50
-2.00

62.75
54.50

29.25

-.75

-1.25

52.00

34.75
34.75

-2.00
-2.50

-3.25
-3.00

87.00
61.50

41.00
41.75

-1.50
+1.25

-2.50 70.00
+1.25 85.00

59.00
37.75

-
-

+1.00 110.00
-1.50 84.00

53.00
37.50

-1.00
-2.25

-
-3.50

bakingbusiness.com / world-grain.com

99.00
75.00

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

Milling & Baking News - July 14, 2009

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