Milling & Baking News - February 8, 2011 - 43

Soy Products
Sales of soy ﬂour were steady last week. Prices advanced. New contracting was limited with buyers mostly covering needs on a month-to-month basis. Users were reluctant to buy longer term, hoping for a price break as the South American crop advances and as harvest progresses from early stages in northern areas. Soy complex futures posted solid gains last week. Soybeans were at 2½year highs with old crop contracts mostly above $14 a bu. Ongoing strong export demand, especially from China, and concerns about tight domestic and global supplies provided underlying support, as did weakness in the U.S. dollar early in the week. Gains were trimmed modestly after midweek when striking Argentine port workers returned to work under government order, on proﬁt taking and on strength in the U.S. dollar. The trade awaited the U.S. Department of Agriculture’s Feb. 9 World Supply and Demand Estimates for direction on domestic and global soybean supplies. Net export sales of U.S. soybeans in the week ended Jan. 27 were 1,032,300 tonnes for delivery in 2010-11, up 32% from a week earlier and up 71% from the prior four-week average, the U.S.D.A. said. Net sales of 3,075,600 tonnes for 2011-12, nearly all for China also were reported. The two-year total was well above trade expectations. Soybean meal net export sales for 2010-11 totaled 177,900 tonnes, up sharply from the prior four-week average, the U.S.D.A. said. Net sales commitments for the marketing year to date were up 10% from the same period a year ago for soybeans but were down 26% for soybean meal, the U.S.D.A. said. MBN

Corn Products
Bookings of corn meal products were steady as most users continued to buy month to month because of current high price levels, which advanced still more last week. While most large buyers have added coverage on a quarterly basis, many medium-size and smaller users who missed longer-term booking at lower price levels several months ago were content to buy only a month out in hopes of lower prices at some point. Demand remained best for ﬁner granulations, including ﬂour, breading, batter, cones and extruded products. Mills ran about 5½ days with some operations experiencing unplanned down time due to the massive winter storm that moved through much of the country. Old crop corn futures prices surged more than 30c a bu last week to new 30-month highs with the July 2011 contract drawing within a nickel of the $7-a-bu benchmark. Ongoing strength in other markets, especially soybeans and wheat, and concerns of tightening domestic supplies underpinned price gains. Talk China may buy more U.S. corn added fuel on Friday. Fear that corn may lose acres to other crops, including soybeans, spring wheat and cotton, offered support during the week, as did ongoing strong demand, especially from the ethanol sector. The market will get updated supply and use projections on Feb. 9 from the U.S. Department of Agriculture’s supply/demand report. Net export sales of U.S. corn in the week ended Jan. 27 for delivery in 201011 were 1,166,700 tonnes, 2.8 times the prior week’s amount and a marketing year high, the U.S.D.A. said. Sales were well above trade expectations. MBN

Oats
Bookings of food grade oats ﬂakes were steady last week. Some limited sales through the crop year were noted, but a good amount of business remained to be done, according to millers. Shipments remained brisk with the hot breakfast cereal season in full swing. Oats ﬂake prices were sharply higher, following strong gains in oats futures prices, and were the highest since July 2008. Statistics Canada reported Dec. 31, 2010, Canadian oats stocks at 2.1 million tonnes, down 30% from 3 million tonnes a year ago and at the low end of trade expectations. Millers were concerned about adequate oats supplies as the year progresses because of the smaller supply and lower milling quality of the 2010 Canadian oats crop. MBN

Rice
Milled rice prices were unchanged last week. Rice byproduct prices were mixed with bran $15 a ton lower to $5 higher and millfeed and hulls steady to up $5. U.S. Department of Agriculture 2010 crop world milled rice prices declined 67@99c a cwt last week. Rough rice prices posted limit gains last Monday and advanced to 27-month highs on Thursday on concern the U.S. crop may lose acres to other crops in 2011 and on concern unrest in Egypt could turn that country from a rice exporter to an importer. Proﬁt taking at week’s end trimmed gains modestly. Net export sales of U.S. rice in the week ended Jan. 27 for delivery in 201011 totaled 57,100 tonnes, up 32% from a week earlier and up 22% from the prior four-week average, the U.S.D.A. said. MBN

Chicago corn and soy futures
Corn Futures $ per bu March May July September December March Soybeans March May July August September November Soybean Meal March May July August September October — Change from — Year Feb. 4 Jan. 28 Jan. 21 ago 6.78½ 6.89¼ 6.94¼ 6.44 6.01¾ 6.11½ $ per bu 14.33½ 14.44 14.50 14.22½ 13.93 13.69 $ per ton 383.20 385.90 386.40 376.90 366.90 355.00 +34½ +34¾ +34½ +32¼ +25¼ +27 +35½ +35¾ +36½ +36 +40 +46 +6.20 +6.40 +6.40 +5.90 +5.70 +7.80 +21¼ +22¼ +23 +21¼ +14½ +16½ +21¼ +21¼ +20 +16¾ +17½ +20¾ +3.60 +3.40 +3.10 +3.30 +3.60 +4.60 3.51½ 3.63 3.73 3.80¼ 3.87 3.99 9.13½ 9.24¼ 9.32¾ 9.28¾ 9.14¼ 9.03½ 271.00 265.00 264.00 261.00 259.00 251.70

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt — Change from — Feb. 4 Jan. 28 Jan. 21 Soy ﬂour Bulk 24.93 @ 26.40 +.31@ +.16 +.03 @ +.02 Sacked 26.93 @ 27.40 +.31@ +.16 +.03 @ +.02

Rice
Offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash Feb. 4 Jan. 28 Jan. 21 ago Long grain 27.50@29 — -1.50 24.75 Medium grain 34@37.50 — — 30.50 Parboiled 34@37 — — 27.75 Second heads, bulk 14.50@16 — -0.50 18.50 Brewers 10@13 — — 16.50 f.o.b. mills, $ per ton Rice millfeed 55@60 0@+5 0@+5 50 Rice bran 110@135 -15 — 110 Rice hulls 10@15 0@+5 0@+5 15 U.S.D.A. 2010 crop world price milled - $ per cwt Long grain 20.01 -0.95 -0.95 19.03 Medium/short grain 19.69 -0.99 -0.99 18.73 Broken 14.16 -0.67 -0.67 13.10 C.B.O.T. rough rice futures - $ per cwt March 15.80 +0.79 +0.93½ 14.09 May 16.10 +0.79 +0.94 14.40 July 16.34 +0.75 +0.92 14.63 September 16.14 +0.71 +0.79½ 13.54
Milling & Baking News February 8, 2011 / 43

Corn meal
$ per cwt Feb. 4 Chicago, bulk 22.50@ 26.16 Chicago, sacked 24.27@ 27.99 New York, bulk 24.17@ 27.89 New York, sacked 26.59@ 30.28 — Change from — Jan. 28 Jan. 21 +.71@+.67 +1.50@+1.46 +.71@+.67 +1.50@+1.46 +.71@+.67 +1.50@+1.46 +.71@+.67 +1.50@+1.46

Oats
— Change from — Minneapolis Feb. 4 Jan. 28 Jan. 21 Food grade ﬂakes, f.o.b., bagged, $ per cwt 32.75@33.25 +1.50 +1.50 Milling quality oats, No. 2 heavy, $ per bu 4.25½ +25½c +29½c Oat hulls, $ per ton 25@35 — —

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Milling & Baking News - February 8, 2011

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