Milling & Baking News - June 1, 2010 - 52

Ingredient Week 

Sweeteners
Refined sugar prices firmed last week
as supplies for the remainder of 2009-10
continued to shrink amid what appeared
to be strong demand. Those few sellers
that still had uncommitted supply available to sell noted an increase in old crop
sugar sales last week.
Bulk refined sugar for delivery
through Sept. 30 was offered at 49@55c
a lb f.o.b., with 49c seen as the "going"
price. In cases where sugar was offered
at 55c, processors mostly were sold out
and were withdrawn from the market.
Bulk sugar could no longer be purchased
at the previous 45c level, traders indicated, although some discounted 50-lb bags
still were available for a limited time
from nontraditional sellers.
Some processors began to restrict the
draw they were allowing on prior sales,
limiting both volume and timing. Customers who needed supply above contracted
levels in some cases were told they had to
seek it elsewhere. But most beet processors
and in some cases cane refiners turned
away new business because they were either sold out or sales were at capacity.
Pricing for 2010-11 (beginning Oct. 1)
was raised to 40c a lb f.o.b. from 38c previously with some material also offered
at 45c. New interest in 2011 remained
light. Some processors indicated a larger-than-normal amount of their prospective production for next year was
already booked. New interest beyond

Beet and cane sugar

2011 was not evident last week.
U.S. sugar beet crop progress and condition varied widely as of May 23 with
crops in mountain and western states,
where some replanting was needed,
behind average, but crops in the Upper Midwest on east ahead of normal.
Emergence in Idaho was at 84%, behind
94% as the 2005-09 average, the U.S. Department of Agriculture said, but the
North Dakota crop was 97% emerged,
well ahead of 57% as the average. The
Michigan U.S.D.A. field office noted beet
growth was well ahead of normal.
The Louisiana cane crop as of May 23
was rated by the U.S.D.A. at 31% good
to excellent (56% a year ago), 48% fair
(33%) and 21% poor to very poor (11%).
Mexico produced 4,673,195 tonnes of
semi-refined sugar from Nov. 1 through
May 22, down 4.6% from the same period last year, the industry said. Exports
to the United States through the first
seven months of the marketing year
were down 69% from the same period
last year, according to the U.S.D.A.
Corn sweetener shipments remained
strong as demand from Mexico continued to draw in volume. MBN

Bakery Shortening
Little business was booked in bakery
shortening last week. Price changes
mostly were irregular with several
making wide moves.
Most buyers continued to work down

contract balances that in many cases
extended through September. Basis levels
continued to hold steady in the 275@175
under range, levels buyers thought were
too expensive. With supplies plentiful,
buyers without forward coverage were
content to buy on a hand-to-mouth basis.
Other factors contributed to the lack
of business. Many buyers were away
from their offices ahead of the Memorial
Day weekend. Also, April soybean crush
figures were an influence. The crush was
136.55 million bus, lower than in recent
months. While the crush was smaller than
anticipated, soybean oil stocks continued
to grow and were at 3.35 billion lbs.
In the case of flat price buyers looking
for soybean oil futures in the 36@36.5c-perlb range, markets nearly hit their targets
but then rallied with a general upswing
in equity and commodity prices as well as
a rally in the price for crude oil.
Lard prices continued to give ground,
although the market was undefined
because of the lack of trading volume.
Edible tallow prices were weak as well.
Canola oil prices tracked soybean oil
futures higher, but market observers
continued to anticipate weaker basis
levels later in the year.
Sunflowerseed oil prices were sharply
higher. While supplies were what one
seller called "normal," unexpectedly
strong demand drove prices upward. A
growing number of buyers were said to
be switching to sunflowerseed 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
May 28
May 21 May 14 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
May 28
Year ago
Midwest beet 49.00 @ 55.00 +4.00 +4.00 35.00
20.375 East
17.375
20.375 net
153/8@ 163/8 183/8@ 193/8
29.85@33.85
Pacific beet
49.00 @ 55.00 +4.00 +4.00 35.00 Midwest
21.925 Midwest
18.925
21.925 net
28.85@32.85
Cane*
49.00 @ 50.00 +4.00 +4.00 35.50 Northeast 16¾@ 17¾ 19¾@ 20¾
22.125 West
19.125
22.125 net
Southeast 167/8@ 177/8 197/8@ 207/8
31.85@35.85
*Spot raw plus 7% plus 12.2c with 2% cash discount.
21.625
18.625
21.625 net
Southwest 16½@ 17½ 19½@ 20½
Raw cane
22.325
19.325
22.325 net
West
173/8@ 183/8 203/8@ 213/8
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
May-June
July-September
October-December
January-March
April-June

- Change from -
May 28 May 21 May 14
33.50
-.05
+3.45
33.50
-.05
+3.45
33.10
+.20 +3.20
27.75
+.55 +1.55
26.05
+.25
+.70
26.00
+.25
+.50

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

Year
ago
22.00
22.00
22.25
22.10
22.30
22.30

Chicago soybean oil futures
Bulk in tank cars, cents per lb
May 28
- Change from -
Delivery
close
May 21
May 14
July
37.61
+.65
+.10
August
37.84
+.66
+.13
September 38.07
+.69
+.19
October
38.25
+.70
+.22
December 38.68
+.76
+.28
January
38.98
+.77
+.31

Edible oils
Bulk, cents per lb
Year
ago
39.05
39.21
39.38
39.54
39.88
40.13

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
May
35.36 @35.86
June
35.36 @35.86
July
35.36 @38.81
August
35.59 @39.04
September
35.82 @39.27
October
36.00 @39.45
November
36.22 @39.67
52 / June 1, 2010 Milling & Baking News

Western points
34.86 @35.11
34.86 @35.11
34.61 @34.86
34.84 @35.09
35.07 @35.32
35.25 @35.50
35.47 @35.72

- Change from - Year
May 28 May 21 May 14 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

36.00
34.50

+1.00
-1.30

+.75
-3.00

37.50
29.50

35.00

-1.00

-3.00

30.50

38.50
42.00

+2.00
-1.50

+1.50 40.50
-2.00 42.00

47.00
46.00

-
-

-1.00
-2.25

46.50
40.50

67.00
40.00

-.50
-

-.50
-1.00

57.00
37.25

56.00
40.00

+4.00
+.75

+5.00 49.00
-
42.75

bakingbusiness.com / world-grain.com

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

Milling & Baking News - June 1, 2010

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