Milling & Baking News - January 12, 2010 - 45



 Soy Products

Soy flour bookings remained sluggish
after the holiday weeks. January typically is a slow month. Contributing to
the slow pace was anticipation of lower
prices as the South American soybean
crop progresses. Last week's price activity suggested buyers would be rewarded
for waiting. Soy flour prices declined.
Lead times to deliver new sales averaged two to three weeks.
Soy complex futures prices posted
wide losses last week. A combination of
anticipated decreased buying by China
and forecast record-large production in
South America weighed on prices and
overshadowed outside market factors
that supported prices earlier in the week.
Tighter credit in China along with an
anticipated seasonal shift in that country's buying from the United States to
South America sent prices reeling after
midweek. Favorable weather and forecasts of even larger production in South
America further weighed on prices.
The market was looking ahead to the
Jan. 12 U.S. Department of Agriculture
Crop Production 2009 Summary (annual).
The trade expected a slight boost in the already record-large 2009 soybean crop.
Net export sales of U.S. soybeans for
2009-10 during the week ended Dec. 31
were 726,100 tonnes, down 8% from a
week earlier and 25% under the prior
four-week average, the U.S.D.A. said.
China bought 62% of the total. Soybean
meal sales were 61,800 tonnes for the
week, down 79% from a week earlier,
74% below the four-week average and
a marketing year low, the U.S.D.A. said.
Soybean sales were within the range of
trade expectations, but soybean meal
sales were well below the range. MBN

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

Jan. 8
4.23
4.33¼
4.41¾
4.45¾
4.49
4.58
$ per bu
10.13
10.22
10.27¾
10.32¼
10.28½
10.12½
$ per ton
306.80
298.30
293.10
293.10
292.20
289.20

 Corn Products

Sales of corn meal were slow last week.
Prices edged higher. Mills continued to
run hard to produce adequate volume
of large flaking grits. Milling quality and
yield remained a problem due to this
year's late-harvested, high-moisture corn
crop. Millers indicated some customers,
hoping for lower corn prices, had lighterthan-normal coverage. Some large buyers
were only 50% covered through the first
quarter with minimal coverage after that.
But a few users had taken full coverage
for the year.
Traders were anticipating the Jan. 12
U.S. Department of Agriculture Crop
Production 2009 Summary (annual).
Ideas were about 100 million bus (about
1%) would be trimmed from the previous
corn crop estimate of 12,921 million bus,
because about 500 million bus remained
to be harvested. With fields snow laden
and harvest completion unlikely until
spring, losses of the crop still standing
were expected to be significant. Still, the
crop would be the second largest ever.
Corn futures posted modest price gains.
With uncertainty about what the U.S.D.A.
would do with production and supply/
demand numbers, corn futures mostly
followed outside markets, which offered
mixed signals on any given day. Support
came from the weaker dollar and stronger
crude oil prices early in the week, but both
changed direction in subsequent trading.
Sharp losses in soybean futures weighed
on corn while buying in anticipation of index fund rebalancing offered support.
Net export sales of U.S. corn for 200910 during the week ended Dec. 31 were
364,700 tonnes, down 53% from the previous week and 67% under the prior
four-week average, the U.S.D.A. said.

 Oats

Bookings of food grade oat flakes increased after the holiday but could not
be called robust. Prices were unchanged.
Most users were covered through the
first and second quarters with some
even covered through the full crop year
(through September).
Oats futures prices eased last week
after strong gains a week earlier, when
oats mills were active covering needs for
2010 prior to the end of 2009.
New sales of oats by Canadian farmers were limited last week, which was
typical during the heart of winter and
before new crop year planting intentions
are revealed. MBN

 Rice

Milled rice prices last week were
mostly unchanged but remained firm.
Second heads were steady to 50c a cwt
higher, while other classes of rice and
rice byproduct prices were steady to
firm. U.S. Department of Agriculture
2009 crop world milled rice prices were
unchanged.
Rough rice futures ended with small
gains on influences from outside markets as fundamentals, especially exports,
remained mostly bearish.
Net export sales of U.S. rice during the
week ended Dec. 31 were 53,200 tonnes,
down 48% from a week earlier and 41%
below the prior four-week average, the
U.S.D.A. said. Marketing-year-to-date
export sales commitments of rice were
even with the same period last year. MBN

Rice

Defatted, f.o.b. Midwest plant, $ per cwt
- Change from -
Jan. 8
Dec. 31
Dec. 24
Soy flour
Bulk
21.84 @ 22.15 -.56@ -.35 +.27 @ +.17
Sacked
22.84 @ 24.15 -.56@ -.35 +.27 @ +.17

+8½
+9
+8¾
+8¼
+8¼
+8¼

+14½
+14½
+13½
+11¾
+8¾
+8¼

4.10¾
4.21¼
4.31½
4.41¼
4.54¼
4.66

-26¾
-26½
-26
-27
-25
-20¾

+13½
+14
+13¼
+12¾
+13¼
+11

10.37½
10.36
10.45½
10.56¼
10.56
10.42

Jan. 8
Chicago, bulk
15.21@ 17.92
Chicago, sacked 16.98@ 19.75
New York, bulk
16.88@ 19.65
New York, sacked 19.30@ 22.04

-7.10
-7.80
-7.00
-7.50
-6.70
-4.70

+5.40
+2.00
-.60
-1.50
-1.70
-.70

315.80
314.50
315.90
318.50
318.30
314.80

Minneapolis
Jan. 8
Food grade flakes, f.o.b.,
bagged, $ per cwt
25.50@26
Milling quality oats, No. 2 heavy,
$ per bu
2.70
Oat hulls, $ per ton
25@35

bakingbusiness.com / world-grain.com

Sales were below trade expectations, but
total export sales commitments for the
marketing year to date were 19% ahead
of the same period last year. MBN

Soy products

- Change from - Year
Dec. 31 Dec. 24 ago

Ingredient Week

Grits
$ per cwt
- Change from -
Dec. 31
Dec. 24
+.17@+.02 +.31@+.14
+.17@+.02 +.31@+.14
+.17@+.02 +.31@+.14
+.17@+.02 +.31@+.14

Oats
- Change from -
Dec. 31 Dec. 24
-

+75c

-2c
-

+15c
-

Offers f.o.b. mills, $ per cwt, bagged
- Change from - Year
Cash
Jan. 8
Dec. 31 Dec. 24 ago
Long grain
25.00@26.00
-
- 28.50
Medium grain 30.50@32.00
-
- 45.00
Parboiled
28.50@32.00
-
- 31.50
Second
heads, bulk 18.50@19.00 +0.50 +0.50 25.00
Brewers
16.50@18.00
-
- 25.00
f.o.b. mills, $ per ton
Rice millfeed 50.00@53.00
-
- 62.00
Rice bran
105.00@120.00
-
- 135.00
Rice hulls
15.00
-
- 30.00
U.S.D.A. 2009 crop world price milled - $ per cwt
Long grain
20.82
- +0.26 19.12
Medium/short
grain
20.56
- +0.26 18.87
Broken
14.33
- +0.17 12.87
C.B.O.T. rough rice futures - $ per cwt
January
14.70 ½
+0.14 +0.03 15.08
March
14.95 ½ +0.06½ -0.01½ 14.85
May
15.20 ½ +0.05½ +0.01 15.02
July
15.43 ½ +0.06½
- 15.23
Milling & Baking News January 12, 2010 / 45
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - January 12, 2010

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