Milling & Baking News - December 13, 2011 - 38

Ingredient Week 

Sweeteners
Sugar prices softened in slow trading last week although some offers held steady. Corn sweetener contracting for 2012 moved closer to completion at ﬁrm levels near list prices in many cases. Prices for bulk reﬁned sugar for spot through Dec. 31, 2012, was offered from 57@59c a lb f.o.b., although the upper end of the range was becoming less common. Some traders indicated sugar may be bought as low as 53@55c a lb with others holding closer to 57c. Supplies were becoming more available. Business was slow and was expected to remain so until later in the ﬁrst quarter of 2012. Union members remained locked out of American Crystal Sugar Co. plants, which were running with replacement workers. Additional 2012 contracting of wet corn sweetener products was completed with most business for dry products ﬁnished earlier. Distributors and buyers noted much of the 2012 business was done at or near corn reﬁners’ list prices with less negotiating room than in some past years. Many contracts for 42% high-fructose corn syrup and regular corn syrup came in around $2 a cwt above 2011 levels with the actual dollar amount depending on region and the prior year’s price. New business for 55% HFCS was less obvious with contracting based on availability and region this year. Strong demand from Mexico to replace sugar exported to the United States has tightened the supply of

55% HFCS here. As previously reported dextrose was up about $4 a cwt. Exports of U.S. HFCS to Mexico were 1,022,289 tonnes, dry weight, in 2010-11, up 10% from 2009-10 and up 238% from 2008-09, according to the U.S. Department of Agriculture. Sugar prices in Mexico weakened as the cane harvest progressed. The U.S.D.A. made only minor revisions in its Dec. 9 World Agricultural Supply and Demand Estimates. The U.S. sugar carryover on Oct. 1, 2011, was estimated at 1,472,000 tons, raw value, down 15,000 tons from November due to a 6,000-ton cut in domestic production and a 9,000-ton increase in food use. The carryover on Oct. 1, 2012, was projected at 1,198,000 tons, reﬂecting the 15,000-ton cut in beginning stocks. Other projections for 2011-12 were unchanged from November. The stocks-to-use ratio was estimated at 12.7% for 2010-11, down from 12.9% in November, and at 10.3% for 2011-12, down from 10.4% last month. U.S.D.A. supply-and-use projections for Mexico were unchanged from November for both 2010-11 and 2011-12. Some in the trade expected a reduction in projected 2011-12 Mexican sugar production. MBN

Bakery Shortening
Bookings of bakery shortening expanded last week. Prices of most ingredients were lower. Soybean oil futures prices dropped with

the rest of the soy complex as the U.S. Department of Agriculture on Dec. 9 raised its forecasts for both soybean and soybean oil ending stocks for 2011-12. The cash basis on soybean oil weakened as supplies grew and refiners sought outlets. The price drop triggered bookings of soybean oil at the week’s end. The market earlier in the week was quiet. The U.S.D.A. on Dec. 9 raised its forecast for the carryover of soybean oil on Oct. 1, 2012, to 2,280 million lbs, up 200 million lbs from the November projection but down 145 million lbs, or 6%, from 2,425 million lbs in 2011. Soybean oil production in 2011-12 was forecast at 18,770 million lbs, up 100 million lbs from November but down 118 million lbs from 2010-11. The increase in the production forecast for the current year was attributed to a stronger yield of oil per bu of soybeans crushed as the soybean crush forecast for 2011-12 was lowered 10 million bus, to 1,625 million bus. Soybean oil use in the production of biodiesel in 2011-12 was forecast at 3,600 million lbs, unchanged from the November projection and up 41% from 2,550 million lbs in 2010-11. Food, feed and other industrial use of soybean oil in 2011-12 was forecast at 14,100 million lbs, unchanged from November and down 145 million lbs from the previous year. U.S. soybean oil exports were projected at 1,400 million lbs, down 100 million lbs from November and down 57% from 3,233 million lbs in 2010-11. 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 Dec. 9 Dec. 2 Nov. 25 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Dec. 9 Year ago Midwest beet 57.00 @ 59.00 -1.50 -1.50 57.00 24.625 East 21.375 24.875 net 29.85@33.85 153/8@ 193/8 153/8@ 193/8 Paciﬁc beet 57.00 @ 59.00 -1.50 -1.50 57.00 Midwest 26.175 Midwest 22.925 26.425 net 28.85@32.85 Cane* 57.00 @ 59.00 -1.50 -1.50 57.00 Northeast 16¾@ 20¾ 16¾@ 20¾ 26.375 West 23.125 26.625 net 31.85@35.85 *Spot raw plus 7% plus 16.4c with 2% cash discount. Southeast 167/8@ 207/8 167/8@ 207/8 25.875 22.625 26.125 net Southwest 16½@ 20½ 16½@ 20½ Raw cane 26.575 23.325 26.825 net West 173/8@ 213/8 173/8@ 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 January-March April-June July-September October-December January-March Dec. 9 36.90 36.90 37.20 38.20 36.00 34.30 — Change from — Dec. 2 Nov. 25 -.45 -.10 -.45 -.25 -.10 -.35 +.75 +.90 -1.50 -1.75 -.25 -.10 Year ago 37.30 37.30 37.60 37.60 34.50 32.70

Chicago soybean oil futures
Bulk in tank cars, cents per lb Dec. 9 — Change from — Delivery close Dec. 2 Nov. 25 December 49.34 -.71 +1.11 January 49.60 -.65 +1.16 March 49.98 -.67 +1.11 May 50.35 -.64 +1.16 July 50.64 -.65 +1.17 August 50.69 -.65 +1.12 Year ago 53.79 54.16 54.63 54.92 55.00 54.97

Edible oils
Bulk, cents per lb Dec. 9 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 49.50 49.75 48.50 49.50 52.75 58.50 58.00 95.00 54.25 91.00 54.25 — Change from — Year Dec. 2 Nov. 25 ago -1.25 -.25 -.50 -1.00 +1.25 +1.50 +1.00 -5.00 -.25 — -1.00 +.25 -.25 -.50 50.25 36.50 44.00

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

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. December 49.34 @49.59 January 49.60 @49.85 February 49.79 @50.04 March 49.98 @50.23 April 50.42 @50.67 May 50.60 @50.85 June 50.75 @51.00 Western points 48.84 @49.09 49.10 @49.35 49.29 @49.54 49.48 @49.73 49.92 @50.17 50.10 @50.35 50.25 @50.50

+1.25 52.75 +.75 58.00 +1.25 63.25 +1.00 73.00 -3.00 -1.25 — — 78.00 55.50 58.00 57.00

S
Current Year

38 / December 13, 2011 Milling & Baking News

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Milling & Baking News - December 13, 2011

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