Milling & Baking News - January 24, 2012 - 38

Ingredient Week 

Sweeteners
Sweetener markets remained quiet last week. Prices of bulk reﬁned sugar were unchanged amid limited new sales, although some traders suggested the prior week’s U.S. Department of Agriculture’s World Agricultural Supply and Demand Estimates raised concerns about tight supplies in coming months. Prices of bulk reﬁned sugar held in the 52@56c a lb f.o.b. range for spot through Dec. 31, 2012. Only small amounts were said to be trading, mostly at the low end of the price range. Concerns about supply were prompted by the U.S.D.A.’s projected 2011-12 year end stocks-to-use ratio of 5.3% in its Jan. 12 WASDE, mainly as the result of sharply lower imports from Mexico, where sugar production may come in below earlier expectations. A stocks-to-use ratio of 13% to 15% is more typical. With U.S. 2011-12 production levels basically “locked in,” additional supply would have to come from an increase in the tariff rate quota after April 1 and/or from Mexico. Traders thought the reduction of imports from Mexico was overstated in the WASDE because that nation tended to ship sugar north based on the price relationship to U.S. sugar rather than on its own supply needs. When Mexican reﬁners “shorted” supply in that country by shipping large volumes to the United States in recent years, Mexico opened its own import quotas. Reports from Mexico last week indicated the

U.S.-Mexico sugar price relationship may favor an increase in shipments during February-March. In addition, Mexico has used larger amounts of U.S. high-fructose corn syrup to replace sugar. In its Sugar and Sweeteners Outlook last week, the U.S.D.A. noted sweetener deliveries (sugar and HFCS use) in Mexico during the ﬁrst two months of 2011-12 (October and November) were up 3.5% from the same period in 2010-11 and up 6% from 2009-10. Deliveries of HFCS for the period were up 10% from 2010-11 and up 48% from 2009-10, with the HFCS share rising to 32.8% of the total from 30.8% in 2010-11 and 20.7% in 2009-10. New York sugar futures posted mixed changes last week. Nearby March world raw futures (No. 11) moved to a twomonth high above 24c a lb on weakness in the value of the U.S. dollar and indications of slow harvest progress in Brazil. Domestic raw futures (No. 16), meanwhile, declined to near 34c a lb on increased producer selling. The American Crystal Sugar Co. lockout of union members continued with replacement labor operating processing plants across the Upper Midwest. Domestic corn sweetener markets were quiet last week. MBN

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

oils futures gained ground with the rest of the soy complex, which advanced on ongoing concerns about dry conditions in South America that may adversely affect soybean production there. The cash basis on soybean oil remained unchanged. Soybean oil users put on additional coverage during the previous week that extended contract balances to about 60 days for most buyers. It was expected buying would pick up again if futures prices would dip toward 50c a lb. Declining world vegetable oil supply provided underlying support to U.S. soybean oil values. While the market may weaken from time to time, no collapse in prices was envisioned. The National Oilseed Processors Association estimated the soybean crush in December at 145,420,000 bus, up from 141,277,000 bus in November but down slightly from 145,537,000 bus in December 2010. Soybean oil stocks at the end of December were estimated at 1,938 million lbs, up from 1,855 million lbs in November and compared with 3,020 million lbs in December 2010. Palm oil prices weakened. Palm oil futures were lower. A poll of 25 market analysts indicated most expected palm oil prices to decline this year, which would be the first year of declining prices in three years. The analysts pointed to increasing production and worries over world demand in view of continued slow world economic growth. 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. 20 Jan. 13 Jan. 6 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Jan. 20 Year ago Midwest beet 52.00 @ 54.00 — — 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 — — 55.00 Midwest 28.175 Midwest 24.925 29.425 net 32.85@36.85 Cane* 53.00 @ 56.00 — — 55.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 28.375 West 25.125 29.625 net 35.85@39.85 *Spot raw plus 7% plus 15.4c 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 February-March April-June July-September October-December January-March — Change from — Jan. 20 Jan. 13 Jan. 6 34.20 -.50 -1.70 34.20 -.50 -1.70 35.65 +.25 -.35 35.60 -.15 -.40 35.00 -.50 -.75 33.40 -.40 -.70 Year ago 38.35 38.35 38.80 39.80 35.40 34.15

Chicago soybean oil futures
Bulk in tank cars, cents per lb Jan. 20 — Change from — Delivery close Jan. 13 Jan. 6 March 50.43 +.14 -.69 May 50.86 +.16 -.64 July 51.25 +.19 -.56 August 51.35 +.19 -.51 September 51.42 +.17 -.47 October 51.44 +.16 -.35 Year ago 57.56 58.00 58.41 58.51 58.59 58.60

Edible oils
Bulk, cents per lb — Change from — Year Jan. 20 Jan. 13 Jan. 6 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 50.00 49.00 51.50 52.00 50.00 52.75 69.00 96.00 54.50 88.00 54.50 +.25 -.50 +.25 +.50 -.25 — — — +.25 — — -.50 — +.75 -.25 -.75 54.50 50.25 50.50 56.50 61.00

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 49.68 @49.93 February 49.68 @49.93 March 49.68 @49.93 April 50.15 @50.40 May 50.36 @50.61 June 50.56 @50.81 July 50.75 @51.00 Western points 48.93 @49.43 48.93 @49.43 48.93 @49.43 49.40 @49.90 49.61 @50.11 49.81 @50.31 50.00 @50.50

+1.25 63.25 +3.00 87.00 +.75 +.25 -3.00 -1.25 76.50 59.75 77.00 59.50

O
Current Year

38 / January 24, 2012 Milling & Baking News

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Milling & Baking News - January 24, 2012

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