Milling & Baking News - January 10, 2012 - 42

Ingredient Week 

Sweeteners
Sweetener markets remained quiet after the holiday break. Few new sugar sales were evident, and prices held about steady. Corn sweetener business was mostly completed several weeks ago. Prices of bulk reﬁned sugar were mostly in the 52@56c a lb f.o.b. range for spot through Dec. 31, 2012. Most buying interest was closer to 52c a lb for beet sugar with cane offers as high as 56c. There were some buyer inquiries, but nothing was expected to trade until this week at the earliest. Discussion was noted for 2013 and 2014, but no new sales were evident, although some processors earlier booked considerable volume for 2013. Sugar supply was available but not abundant. Some buying was expected ahead of Easter, mainly from quarterly buyers. And some traders still speculated supplies may tighten in the second quarter, which may prompt the U.S. Department of Agriculture to reevaluate import quotas after April 1. Unseasonably warm weather in the Red River Valley and other northern areas did not appear to hurt beet piles with nighttime temperatures below freezing. Much colder weather was forecast. American Crystal Sugar Co. plants across the Upper Midwest continued to run with replacement labor. Sugar prices were mostly stable in Mexico. A report indicated Mexico was “considering” a 400,000-tonne import

quota to supplement domestic supply and prevent price spikes. While the cane harvest there still had a long way to go, some traders said they would not be surprised at such an import quota since they considered earlier 2011-12 Mexican production forecasts above 5.3 million tonnes to be too high. The U.S.D.A. will update both U.S. and Mexican sugar production and use forecasts on Jan. 12. New York world raw sugar futures advanced 5% to seven-week highs early last week and then plunged 5% Thursday on strong gains in the value of the dollar and automated sell orders. Domestic raw futures saw modest declines. Higher corn sweetener values contracted for 2012 are reﬂected in the Milling & Baking News price tables on this page. Values for dextrose were up $4 a cwt from 2011 contracted levels, 42% high-fructose corn syrup and regular corn syrup were about $2 a cwt higher, and 55% HFCS was raised about $3 a cwt, although pricing on the latter was not well deﬁned due to changes in the negotiating process implemented by corn reﬁners last fall. MBN

Bakery Shortening
Bookings of bakery shortening were light last week. Price changes were mixed. Soybean oil prices declined. Soybean oil futures prices advanced through midweek but tumbled into the weekend. The cash basis on soybean oil maintained a soft under-

tone emerging from the holidays as refiners sought outlets amid limited demand. Weather forecasts for South American soybean areas were eyed closely. Rain was in midweek forecasts, which pressured soy complex futures on Thursday, but subsequent forecasts issued at the week’s end suggested less rain may fall than earlier suggested. Dry conditions, especially in Argentina, provided resistance to price declines in the soy complex. Soybean planting in Argentina was about 86% completed. The U.S. dollar index trading to the highest level since January 2011 exerted pressure on commodity futures generally. Crude oil futures prices held above $100 a barrel, though, amid jitters prompted by Iran’s threat it may block the Strait of Hormuz in response to tightening economic sanctions. The soybean oil market remained sensitive to any changes in the crude oil market because of use of soybean oil in the production of biodiesel. The U.S. Department of Agriculture indicated net export sales of U.S. soybean oil during the week ended Dec. 29 totaled 7,300 tonnes with Taiwan, Mexico and Panama the principal buyers. Decreased demand after the key baking season weighed on lard and tallow prices. Palm oil prices were firm as production in Malaysia was adversely affected by heavy rain that prevented workers from harvesting at full speed. 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 Jan. 6 Dec. 30 Dec. 23 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Jan. 6 Year ago Midwest beet 52.00 @ 54.00 — -1.00 55.00 26.625 East 23.375 27.875 net 33.85@37.85 173/8@ 213/8 153/8@ 193/8 Paciﬁc beet 52.00 @ 54.00 — -1.00 55.00 Midwest 28.175 Midwest 24.925 29.425 net 32.85@36.85 Cane* 53.00 @ 56.00 — -2.00 55.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 28.375 West 25.125 29.625 net 35.85@39.85 *Spot raw plus 7% plus 13.6c with 2% cash discount. Southeast 187/8@ 227/8 167/8@ 207/8 27.875 24.625 29.125 net Southwest 18½@ 22½ 16½@ 20½ Raw cane 28.575 25.325 26.825 net West 193/8@ 233/8 173/8@ 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 — Change from — Jan. 6 Dec. 30 Dec. 23 35.90 -.35 -.25 35.90 -.35 -.25 36.00 -.25 -.50 36.00 -.25 -.60 35.75 -.25 -.75 34.10 -.05 -.05 Year ago 38.50 38.50 38.75 39.80 34.90 34.10

Chicago soybean oil futures
Bulk in tank cars, cents per lb Jan. 6 — Change from — Delivery close Dec. 30 Dec. 23 January 50.80 -1.29 -.16 March 51.12 -1.30 -.25 May 51.50 -1.28 -.23 July 51.81 -1.24 -.21 August 51.86 -1.24 -.21 September 51.89 -1.22 -.21 Year ago 56.35 56.82 57.22 57.44 57.47 57.47

Edible oils
Bulk, cents per lb — Change from — Year Jan. 6 Dec. 30 Dec. 23 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 50.50 49.00 50.75 52.25 50.75 51.50 66.00 95.25 54.25 91.00 55.75 -1.25 — — -1.25 — — +2.00 — +.50 — -1.25 -.50 -.75 — — +.50 53.50 43.00 46.25 55.50 60.25

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

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. January 50.30 @50.55 February 50.46 @50.71 March 50.62 @50.87 April 51.06 @51.31 May 51.25 @51.50 June 51.41 @51.66 July 51.56 @51.81 Western points 49.55 @49.80 49.71 @49.96 49.87 @50.12 50.31 @50.56 50.50 @50.75 50.66 @50.91 50.81 @51.06

— 63.25 +3.00 87.00 — +.50 — -.25 76.50 59.75 68.50 59.25

O
Current Year

42 / January 10, 2012 Milling & Baking News

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Milling & Baking News - January 10, 2012

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