Milling & Baking News - January 11, 2011 - 41


Soy Products
Sales of soy flour were slow after the
holidays. Prices were lower. Some processors noted a spurt of longer-term
contracting, in a few cases through September, that had been lacking the past
several weeks, but others indicated light
and mostly month-to-month sales. Most
large buyers previously booked much of
their soy flour needs through the 2010-11
crop year or even through calendar 2011.
Last week's lower prices gave users an
opportunity to extend coverage in what
remained a bullish scenario for the soy
complex. Many smaller users have covered less than 50% of their needs for the
year, processors indicated. Lead times to
deliver new orders held at two to three
weeks with processors running full.
Soybean futures dropped about 26@38c
a bu, falling below $14, while soybean
meal contracts lost about $7@11 a ton. Soy
complex and other commodity futures
started the new year unsettled with index
fund "rebalancing" expected to inject volatility into markets during the first couple
weeks in January. Profit-taking after strong
gains in 2010 also pressured futures prices.
But the key factor affecting the soy complex was an improved weather outlook
for Argentina, the world's third-largest
soybean grower and largest soybean meal
and soybean oil exporter. Hot, dry conditions in that country helped drive futures
higher during the past few weeks. But otherwise a bullish scenario remained for the
soy complex with tight ending stocks and
strong export demand.
Traders awaited a bevy of Jan. 12 U.S.
Department of Agriculture reports, including revisions to 2010 soybean production and 2010-11 supply/demand
projections and new Dec. 1 stocks data.

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

-34
-32¾
-31½
-26
-20
-19¾

-19
-18¼
-17¼
-9
-9¼
-9

4.23
4.33¼
4.41¾
4.45¾
4.49
4.58

-36
-38
-35¼
-33¾
-28¼
-26½

+8¼
+5
+6¾
+8½
+11
+13½

10.13
10.22
10.27¾
10.32¼
10.28½
10.12½

-11.20
-11.80
-9.50
-9.30
-8.10
-7.00

-.90
-1.30
+.70
+.60
+.30
+2.20

306.80
298.30
293.10
293.10
292.20
289.20

bakingbusiness.com / world-grain.com

Corn Products
Bookings of corn meal products were
steady last week. Prices declined. Shipments were expected to pick up as cereal
manufacturers closed during the holiday
period began to reopen. Corn mills ran
five to six days last week.
Old crop corn futures prices fell 26@34c
a bu, mainly on improved moisture conditions in Argentina, a major corn grower and
the world's second-largest corn exporter.
Concerns about demand at recent price
levels also weighed on prices. Like other
commodities, corn futures succumbed to
pressure from profit taking and index fund
rebalancing at the start of the year.
Traders awaited U.S.D.A. Jan. 12 revised 2010-11 corn supply/demand
projections, refined 2010 production estimates and Dec. 1, 2010, corn stocks data.
Net export sales of U.S. corn for 201011 totaled 369,000 tonnes during the week
ended Dec. 30, down 47% from a week
earlier and 52% below the prior fourweek average, the U.S.D.A. said. Japan
was the major buyer taking 67% of the

total. Sales for the week were below trade
expectations that ranged from 400,000 to
800,000 tonnes. For the marketing year to
date, export sales commitments of corn
were 4% ahead of the year-ago pace. MBN

Oats
Bookings of food grade oats flakes were
slow last week although inquiries picked
up, millers noted. Prices were unchanged.
Oats mills ran full with lead times of about
two weeks required to deliver new orders.
One miller estimated about 40% of
potential production already was sold
for 2011, slightly more than average for
the date. Although oats futures prices
declined sharply last week, traders still
saw a bullish scenario because of the low
milling quality of much of Canada's 2010
crop and uncertainty about 2011 acreage. Millers and buyers were concerned
about supplies as the year progresses. MBN

Rice
Milled rice prices were unchanged
after the holiday break. Rice byproduct
prices were sharply higher with bran
firm to up $10 a ton, hulls up $8@9 and
millfeed $5 higher. U.S. Department of
Agriculture 2010 crop world milled rice
prices were 38@54c a cwt lower last week.
After strong gains a week earlier,
rough rice futures prices declined sharply with other commodities last week.
Ample global supplies also weighed.
Net export sales of U.S. rice for 201011 totaled 71,900 tonnes during the week
ended Dec. 30, nearly three times the previous week's total and up 14% from the
prior four-week average, the U.S.D.A.
said. Export sales commitments for the
marketing year to date were up 18%
from the same period a year ago. MBN

Soy products

- Change from - Year
Jan. 7 Dec. 31 Dec. 23 ago
5.95
6.03¾
6.08½
5.69½
5.42
5.50
$ per bu
13.57¾
13.65
13.73¾
13.77¾
13.53¾
13.17
$ per ton
359.10
362.10
365.00
365.50
356.20
345.50

Net export sales of U.S. soybeans for
2010-11 during the week ended Dec. 30
totaled 489,300 tonnes, down 26% from a
week earlier and 9% below the prior fourweek average, the U.S.D.A. said. China was
the primary buyer. Net soybean meal sales
for 2010-11 during the week were 24,500
tonnes, down 89% from a week earlier, the
U.S.D.A. said. Sales of both soybeans and
soybean meal were below most trade expectations, in part due to the holidays. Net
export sales commitments for the marketing year to date for soybeans were up 10%
from the same period last year while soybean meal commitments were down 18%
from a year ago, the U.S.D.A. said. MBN

Ingredient Week

Defatted, f.o.b. Midwest plant, $ per cwt
- Change from -
Jan. 7
Dec. 31
Dec. 23
Soy flour
Bulk
24.39 @ 24.73 -.78@-1.17 -.26 @ -.52
Sacked
25.73 @ 26.39 -1.44@ -.51 -.52 @ -.26

Rice
Offers f.o.b. mills, $ per cwt, bagged

- Change from - Year
Cash
Jan. 7
Dec. 31 Dec. 23 ago
Long grain
29.00@30.00
-
- 25.00
Medium grain 34.00@35.50
-
- 30.50
Parboiled
34.00@37.00
-
- 28.50
Second
Corn meal
heads, bulk 15.00@16.00
-
- 18.50
$ per cwt
10.00@13.00
-
- 16.50
- Change from - Brewers
Jan. 7
Dec. 31
Dec. 23 f.o.b. mills, $ per ton
45@50
+5.00 +5.00 50.00
Chicago, bulk
19.75@ 23.50 -.66@-.67 -.36@-.39 Rice millfeed
110@120 +10.00 +10.00 105.00
Chicago, sacked 21.52@ 25.33 -.66@-.67 -.36@-.39 Rice bran
10.00
+8@9 +8@9 15.00
New York, bulk
21.42@ 25.23 -.66@-.67 -.36@-.39 Rice hulls
New York, sacked 23.84@ 27.62 -.66@-.67 -.36@-.39 U.S.D.A. 2010 crop world price milled - $ per cwt
Long grain
21.67
-0.53
-0.53 20.82
Oats
Medium/short
21.38
-0.54
-0.54 20.56
- Change from - grain
Minneapolis
15.33
-0.38
-0.38 14.33
Jan. 7
Dec. 31 Dec. 23 Broken
C.B.O.T. rough rice futures - $ per cwt
Food grade flakes, f.o.b.,
January
13.39
-0.60½ -0.00½ 14.71
bagged, $ per cwt
31@31.50
-
+50c
March
13.63
-0.66 -0.06½ 14.96
Milling quality oats, No. 2 heavy,
13.91
-0.67½
-0.06 15.21
$ per bu
3.80¾
-23¼c
-17¾c May
July
14.17½
-0.66½ -0.04½ 15.44
Oat hulls, $ per ton
25@35
-
-
Milling & Baking News January 11, 2011 / 41

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Milling & Baking News - January 11, 2011

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