Milling & Baking News - August 25, 2009 - 36

Ingredient Week 

 Sweeteners

Sugar markets were calmer last week.
Raw futures prices fluctuated slightly
below recent 28-year highs, and refined prices held firm after the previous
week's advance of 4c a lb.
Major beet and cane processors held
bulk refined sugar offers firm at 39c a lb
f.o.b. nationwide for spot through calendar 2010. One refiner continued to offer
sugar at 45c a lb for spot delivery.
Trading was slow as buyers balked
at current offers. There were reports of
some buyers seeking to cover 2009-10 or
calendar year 2010 at the previous 35c-alb level, but sellers did not budge from
their 39c offers. Since users were covered
through the remainder of 2008-09 (ending Sept. 30) and most have adequate
first-quarter 2009-10 (October-December) coverage, most buyers were able
to wait on the sidelines in the hope new
crop sugar would bring prices down early in 2009-10. Coverage for all of 2009-10
was estimated at around 70% of the potential, but the percentage varied widely
between companies.
Some processors indicated they still
had 2008 crop sugar available at the 39c
level, while others have been totally sold
out for some time.
Sugar shipments from Mexico to the
United States have slowed noticeably
the last few weeks, trade sources said.
There were no indications Mexican shippers had defaulted on contracts, but

Beet and cane sugar

some were falling behind on scheduled
shipments, trade sources said.
The war of words between sugar users and producers continued last week.
Users have asked the U.S. Department of
Agriculture to allow increased imports
because of tight supplies, especially
in 2009-10. Producers have countered
sugar is available, and users were trying
to drive prices lower. The U.S.D.A. has
taken no action on raising import levels.
Sugar beet crops improved slightly
in the week ended Aug. 16. Beets rated
good to excellent were 80% in North Dakota (77% a week earlier), 73% in Minnesota (72%), 96% in Colorado (89%)
and 93% in Wyoming (93%). Louisiana's
cane crop rating improved to 52% good
to excellent from 45% a week earlier.
The Michigan U.S.D.A. field office
said, "Sugar beets responded to the recent rains and were beginning to look
better. It was reported that Michigan
Sugar will start taking sugar beets on
Sept. 15."
Corn sweetener markets were quiet.
Shipments were running slightly behind
desired levels in some cases. There was
no indication of 2010 pricing inquiry. MBN

 Bakery Shortening

Bookings of bakery shortening were
limited last week. Prices of most ingredients were steady to lower following a
run-up in recent weeks.
Soybean oil prices dropped. Soybean

oil futures prices stumbled with soybeans
in the face of an expected record soybean
harvest in the U.S. and heavy soybean
plantings in South America. The soybean
oil basis remained sloppy despite ideas
the cash market had bottomed. Soybean oil stocks in excess of 3 billion lbs
weighed heavily on the market.
The attractive basis levels encouraged
soybean oil users to book additional
basis for the first quarter of 2010 and
consider extending basis coverage into
April-June. Basis coverage completed
for October-December was estimated at
90% of the potential business, and flat
coverage (basis and futures covered) for
the last quarter of 2009 was estimated at
80%. Basis coverage in January-March
was estimated at around 40% with flat
coverage light.
Peanut oil prices weakened in the face
of increased crushing that expanded supply. The downturn may be short lived as
demand in the fall typically increases due
to use of peanut oil in turkey fryers.
Coconut oil weakened with crude
trading at an 11c discount to 76-degree
supply (quoted in the table on this page).
The premium asked for canola oil compared with soybean oil narrowed.
Palm oil prices also were softer. The
Indian monsoon produced more rain,
easing some production concerns there.
Lard prices were weaker, but edible
tallow prices moved up as crude oil prices strengthened. 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
Aug. 21
Aug. 14 Aug. 7 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Aug. 21
Year ago
Midwest beet 39.00 @ 39.50
-
+4.00 38.00
23.375 East
22.375
25.375 net
183/8@ 193/8 173/8@ 175/8
34.85@36.85
Pacific beet
39.00 @ 40.00
-
+4.00 38.00 Midwest
24.925 Midwest
23.925
26.925 net
33.85@35.85
Cane*
39.00 @ 39.10
-
+3.90 39.85 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
August-September
October-December
January-March
April-June
July-September

- Change from -
Aug. 21 Aug. 14 Aug. 7
26.45
-.55
+2.45
26.45
-.55
+2.45
26.45
-.55
+2.05
26.40
-.60
+1.75
26.50
-.40
+1.85
26.20
-.65
+1.55

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

Year
ago
22.95
22.95
22.95
22.95
23.00
23.00

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Aug. 21
- Change from -
Delivery
close
Aug. 14
Aug. 7
September 36.33
-.85
-.59
October
36.53
-.85
-.57
December 36.94
-.85
-.55
January
37.29
-.87
-.55
March
37.50
-.88
-.58
May
37.62
-.90
-.58

Edible oils
Bulk, cents per lb
Year
ago
54.15
54.42
54.93
55.45
56.05
56.48

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
August
31.83 @32.33
September
31.83 @32.33
October
32.03 @32.53
November
32.24 @32.74
December
32.44 @32.94
January
32.79 @33.29
February
32.90 @33.40
36 / August 25, 2009 Milling & Baking News

Western points
31.08 @31.58
31.08 @31.58
31.28 @31.78
31.49 @31.99
31.69 @32.19
32.04 @32.54
32.15 @32.65

- Change from - Year
Aug. 21 Aug. 14 Aug. 7 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

32.25
35.00

-1.00
-.50

-.50 52.00
+2.50 46.75

36.25

+1.00

+3.25 43.00

39.00
38.00

-.75
-1.50

-.25
-.25

74.75
46.25

42.50
47.75

-1.50
-.50

-1.50
+.50

53.75
62.50

60.00
36.50

-5.00
-

-4.00 110.00
-
62.50

54.00
41.25

-
-1.50

+1.00 90.00
-1.75 62.25

bakingbusiness.com / world-grain.com

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

Milling & Baking News - August 25, 2009

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