Milling & Baking News - December 1, 2009 - 41

Ingredient Week 

 Sweeteners

Intense activity in corn sweeteners
dominated events in sweeteners last
week. The sugar market was quiet.
A major corn processor announced its
delivered prices for calendar year 2010
would remain unchanged for current
liquid corn sweetener contract customers: "This program is available effective
Nov. 23, 2009, and expires Dec. 31, 2009."
Nothing was said about pricing after the
deadline. Citing uncertainty surrounding various inputs that affect liquid corn
sweetener costs, the company said it reserves the right to withdraw the prices
at any time. According to the processor,
current inputs, including corn, are at
about the same price levels as a year ago,
justifying the unchanged pricing.
Other major corn processors still have
not issued pricing announcements, and
there were hints some might not. Other
processors acknowledged they had been
contracting 2010 corn sweeteners for
some weeks. One company said it had
booked corn sweetener products at premiums, rollover and discounts. One of
the majors said it had contracted 50%
of its targeted business at the start of
November but would not comment on
where contracting was at present. Some
merchandisers said around 80% of their
business was completed, although others
indicated suppliers were holding back.
Reports on pricing also were mixed.
Some maintained there was a steady

Beet and cane sugar

stream of business at discounts of 2@3c
a lb from last year's contracts. Others,
while expecting some discounting, anticipated a smaller decline from 2009.
Sugar was quiet with most sales again
at 45c a lb f.o.b. Individual processors
continued to quote 45@47c f.o.b. While
there were some hints of lower prices,
most of this was limited to individual
sellers and specific areas.
Participants estimated about 75% of
prospective sugar needs already were
booked for 2010. Some indicated they
were halting additional sales as problems with the harvest created uncertainties about the final supply. Other processors continued to sell sugar with some
still pushing for business into 2011.
Both domestic (No. 16) and world (No.
11) sugar futures declined early in the
holiday-shortened trading week, mainly
from outside pressure. The World Sugar
Organization last week forecast world
sugar production would slightly exceed
consumption in 2010-11 as strong prices
encourage increased planting. MBN

 Bakery Shortening

Bookings of bakery shortening were
limited during the holiday-shortened
week. Price changes were mixed. Soybean oil and those oils whose value are
determined in relation to that of soybean
oil advanced up to the Thanksgiving
break but gave back all or most of the
gains during the Friday session.

Soybean oil futures prices advanced
through midweek but turned lower during
the last session when no buyers were in offices to respond. There likely would have
been no enthusiasm at any rate as buyers
were chagrined at current levels and confident if the fundamentals were allowed to
be heard, prices should turn lower in the
weeks ahead. The U.S. has completed a record large soybean harvest, and conditions
were improving in South America, where
what was expected to be record large soybean area was being planted.
The cash basis on soybean oil began to
weaken as soybean crush expanded with
the availability of new crop soybeans.
The U.S. Census Bureau estimated October soybean crush at 163.1 million bus,
up 50 million bus from September and
compared with 150.1 million bus in October 2008.
Individual soybean oil buyers running
short on contracts and already holding
basis coverage extended contract balances through December.
The market for palm oil was quiet.
Firmness in vegetable oils overall provided underpinning to prices even as
inventories steadily increased because of
seasonally heavy production.
Canola oil buyers were on edge. Supplies remained tight largely because of
problems connected with Salmonella contamination in canola meal supplies from
certain plants, but a new facility will
soon come on stream. 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
Nov. 27
Nov. 20 Nov. 13 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Nov. 27
Year ago
Midwest beet 45.00 @ 47.00
-
-
35.00
23.375 East
22.375
25.375 net
183/8@ 193/8 173/8@ 223/8
34.85@36.85
Pacific beet
45.00 @ 47.00
-
-
35.00 Midwest
7
24.925 Midwest
23.925
26.925 net
33.85@35.85
Cane*
45.00 @ 47.00
-
-
35.00 Northeast 19¾@ 20¾ 18¾@ 23 /8
25.125 West
24.125
27.125 net
Southeast 197/8@ 207/8 187/8@ 241/8
36.85@38.85
*Spot raw plus 7% plus 9.75c with 2% cash discount.
24.625
23.625
26.625 net
Southwest 19½@ 20½ 18½@ 235/8
Raw cane
25.325
24.325
27.325 net
West
203/8@ 213/8 193/8@ 243/8
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
- Change from -
Contract
Nov. 27 Nov. 20 Nov. 13
Nearby
30.50
-.40
-1.60
November-December 30.50
-.40
-1.60
January-March
30.25
-.70
-1.25
April-June
29.25
+.60
+.75
July-September
27.90
+.15
-.50
October-December 27.00
+.10
-.20

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

Year
ago
19.90
19.90
22.20
20.75
21.25
21.50

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Nov. 27
- Change from -
Delivery
close
Nov. 20
Nov. 13
December 40.10
+.39
+1.49
January
40.52
+.37
+1.48
March
40.91
+.36
+1.49
May
41.22
+.38
+1.51
July
41.53
+.42
+1.56
August
41.63
+.44
+1.56

Edible oils
Bulk, cents per lb
Year
ago
32.58
32.90
33.34
33.74
34.11
34.30

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
November
36.60 @36.85
December
36.60 @36.85
January
37.02 @37.27
February
37.22 @37.47
March
37.41 @37.66
April
37.57 @37.82
May
37.72 @37.97
42 / December 1, 2009 Milling & Baking News

Western points
35.85 @36.35
35.85 @36.35
36.27 @36.77
36.47 @36.97
36.66 @37.16
36.82 @37.32
36.97 @37.47

- Change from - Year
Nov. 27 Nov. 20 Nov. 13 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

36.75
33.00

-
-.25

+1.25 31.25
+1.00 26.50

31.25

-.25

+1.25 18.00

42.00
39.75

+.25
+2.00

+1.50 36.25
+3.00 35.50

44.25
41.75

+.75
-

+1.50 40.50
-
47.00

52.00
39.25

-1.00
-

-
+.75

53.00
45.50

-
+.25

-
53.00
+1.00 39.75

bakingbusiness.com / world-grain.com

90.00
34.00

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

Milling & Baking News - December 1, 2009

Table of Contents for the Digital Edition of Milling & Baking News - December 1, 2009