Milling & Baking News - March 8, 2011 - 46

Ingredient Week 

Sweeteners
Sweetener markets remained quiet last week. Cash sugar prices were unchanged. Most attention was on U.S. bioengineered sugar beet seed lawsuits, the world sugar supply situation and political unrest in the Middle East and North Africa. Prices of bulk reﬁned sugar for nearby through Sept. 30, 2011, held at 55@57c a lb, f.o.b., with some offers for the remainder of calendar 2011 at 57c. Most beet processors were sold out for 2010-11. Domestic bulk reﬁned sugar pricing for 2011-12 was mostly at 51c a lb f.o.b. Beet processors were said to have already booked more than 50% of prospective production for the next marketing year. Inquiry into 2012-13 pricing continued. Imports of sugar from Mexico continued to supplement tight U.S. supplies, even though recent indications were Mexico’s 2010-11 crop may be modestly smaller than ﬁrst forecast due to earlier weatherrelated loses. Trade sources suggested Mexico would maintain the strong export pace to the United States and import more sugar later in year if needed. Shipments of U.S. high-fructose corn syrup to Mexico remained strong, allowing Mexican bottlers to substitute a higher-than-average percentage of the corn sweetener for sugar. This allowed strong exports of Mexican sugar to the United States. Nearby New York world raw sugar futures prices traded above 30c a lb for

the ﬁrst time since Feb. 11. Domestic raw futures traded nearly ﬂat with July and September over 40c a lb. An appellate court on Feb. 25 reversed a district court order to destroy bioengineered sugar beet root stock, or stecklings, being grown under U.S. Department of Agriculture permits that would produce seed for planting in 2012. The ruling had no direct bearing on other pending bioengineered sugar beet cases, still leaving growers with uncertainty about whether to use bioengineered or conventional seed as planting approaches. Bioengineered seed was used to plant 95% of the 2010 U.S. sugar beet crop. Also in late February, the U.S.D.A.’s Animal and Plant Health Inspection Service issued permits to seed companies for the production and shipment of the bioengineered Roundup Ready seeds. The International Sugar Organization (I.S.O.) reduced its 2010-11 global sugar surplus forecast to 196,000 tonnes from 1.29 million tonnes forecast in November, leaving the stocks-to-use ratio the lowest in more than 20 years. The I.S.O. trimmed its 2010-11 production forecast to 168,045,000 tonnes and raised projected consumption to 167,849,000 tonnes. MBN

Bakery Shortening
Bookings of edible fats and oils were limited last week. Price changes were mixed. Soybean oil prices advanced. Soybean oil futures prices rebounded after

recent steep losses that encouraged an expansion in bookings a couple of weeks earlier. Factors in the price bounce were relatively strong export demand and surging crude oil prices in the wake of social upheaval in the Middle East. The higher crude oil prices encouraged ideas use of soybean oil in the manufacture of biodiesel would expand. The cash basis on soybean oil remained strong and even gave signs of strengthening. Bookings of soybean oil were heavy a couple of weeks earlier when futures priced dipped toward 54c a lb. Buyers at that time extended contract balances 30 to 60 days. Booking enthusiasm diminished as prices began to recover. Basis coverage was extensive and was estimated at around 80% in April-June and 60% in July-September. The heavy basis coverage allowed buyers to wait for another hoped-for break in futures prices before extending physical oil coverage further. The U.S. Census Bureau estimated soybean oil stocks at the end of the January at 3,421 million lbs, down slightly from 3,475 million lbs in December. Palm oil prices advanced amid heavy export demand. At the same time, palm oil production was expected to increase seasonally and ease tightness in supply. Sunﬂowerseed oil quotes were withdrawn with supply unavailable except for that being applied against contracts. Canola oil prices ﬁrmed, and their premium to soybean oil prices widened. MBN

Beet and cane sugar
f.o.b. plant, cents per lb

Sweeteners
Delivered basis, cents per lb 42% HFCS spot price1

HFCS list price2 Regular — Change from — Year corn March 4 Feb. 25 Feb. 18 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet March 4 Year ago Midwest beet 55.00 @ 57.00 — — 53.00 24.625 East 21.375 24.875 net 153/8@ 193/8 153/8@ 183/8 29.85@33.85 Paciﬁc beet 55.00 @ 57.00 — — 53.00 Midwest 26.175 Midwest 22.925 26.425 net 28.85@32.85 Cane* 55.00 @ 57.00 — — 53.00 Northeast 16¾@ 20¾ 16¾@ 19¾ 26.375 West 23.125 26.625 net Southeast 167/8@ 207/8 167/8@ 197/8 31.85@35.85 *Spot raw plus 7% plus 11.5c with 2% cash discount. 25.875 22.625 26.125 net Southwest 16½@ 20½ 16½@ 19½ Raw cane 26.575 23.325 26.825 net West 173/8@ 213/8 173/8@ 203/8 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 March 4 Feb. 25 Feb. 18 Nearby 39.65 — -.10 April-June 39.65 — -.10 July-September 40.60 -.15 -.35 October-December 37.90 -.35 -.30 January-March 35.90 +.15 +.05 April-June 35.95 +.20 -.05 Year ago 37.95 37.95 36.00 31.15 28.15 28.45

Chicago soybean oil futures
Bulk in tank cars, cents per lb March 4 — Change from — Delivery close Feb. 25 Feb. 18 March 58.96 +2.01 +2.47 May 59.48 +1.90 +2.36 July 59.98 +1.88 +2.35 August 60.12 +1.85 +2.30 September 60.21 +1.84 +2.30 October 60.08 +1.81 +2.24 Year ago 39.72 40.05 40.48 40.66 40.77 40.86

Edible oils
Bulk, cents per lb — Change from — Year March 4 Feb. 25 Feb. 18 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 56.00 49.00 50.00 58.00 65.00 67.00 94.00 78.00 72.00 90.00 62.00 +2.00 -2.00 -1.50 +2.00 +4.25 +4.25 — — -1.00 +4.00 +2.00 +2.50 36.50 — 34.50 +.50 34.50

Spot soybean oil
Decatur, Ill., bulk, cents per lb
63.00 53.00 43.00 33.00 23.00 M J S Previous Year D Current Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. March 55.71 @55.96 April 55.71 @55.96 May 56.23 @56.48 June 56.48 @56.73 July 56.73 @56.98 August 56.87 @57.12 September 56.96 @57.21 Western points 54.96 @55.21 54.96 @55.21 55.48 @55.73 55.73 @55.98 55.98 @56.23 56.12 @56.37 56.21 @56.46

+2.50 40.25 +1.25 41.00 +1.25 46.50 — 46.00 -4.50 -.50 59.00 39.50

+4.00 51.00 +3.50 43.00

46 / March 8, 2011 Milling & Baking News

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Milling & Baking News - March 8, 2011

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