Milling & Baking News - March 20, 2012 - 49

Soy Products
Soy flour sales were steady last week as prices continued to advance. Activity was on a month-to-month basis. Some buyers balked at the higher price levels, which rose with the bullish soy complex. New soy flour orders may be delivered in two to three weeks. Soy complex futures posted strong gains last week. Soybean futures rose to six-month highs on both fundamental and outside market supports. Soybeans started last week slightly lower on profit-taking and corn/soybean spread trading, but prices subsequently rallied with support coming from strong foreign demand and lower production prospects in South America. One private analyst lowered his forecast for Brazil’s 2011-12 soybean production to 67 million tonnes, down 1 million tonnes from his earlier forecast and 1.5 million tonnes below the latest U.S. Department of Agriculture estimate. The effects of drought in South American soybean production areas earlier in the season were being realized as harvesting progressed in Brazil and was under way in Argentina. As a result of dwindling South American and global soybean supplies, China, the world’s largest soybean buyer, turned increasingly to the United States for both this and the next marketing year. Also supportive was a report from the National Oilseed Processors Association showing U.S. soybean crushings were above trade expectations in February. Late last week, a private estimate of 2012 U.S. soybean plantings around 74.5 million acres, about 500,000 acres below the latest U.S.D.A. forecast, added fuel to the soybean market. Soybean prices need to remain strong relative to corn to ensure adequate planted area.

Net export sales of U.S. soybeans during the week ended March 8 for delivery in 2011-12 were 609,700 tonnes, down 40% from a week earlier and down 19% from the prior four-week average, the U.S.D.A. said. Another 784,000 tonnes were sold for delivery in 201213. China was the major buyer for both periods. Combined sales for the two years exceeded trade expectations. MBN

Corn Products
Corn meal sales were steady last week and mostly on a month-to-month basis as prices advanced. Coverage for the second half of 2012 remained below average. Corn mills ran five to 5½ days last week. Cash corn basis levels remained strong at near historic highs for the time of the year as farmers remained reluctant sellers, although cash sales increased later in the week as futures prices advanced. The two nearby corn futures months rallied more than 26c a bu, or about 4%, while September and new crop months were up about a dime or more. Nearby prices were supported by tight old crop corn supplies and strong demand, including talk of growing interest from China, where corn futures prices on the Dalian exchange hit record highs late last week. Talk that Argentina, the world’s second-largest corn exporter after the United States, may limit exports further supported the market. Somewhat limiting new crop corn futures price gains was a second private forecast for 2012 U.S. corn planted area of 95.5 million acres, about 500,000 acres above the latest U.S. Department of Agriculture forecast. Mild weather conducive to early corn planting also exerted some price resistance. Planting of the 2012 corn crop was

under way across the South with reports of some very early seeding seen in Illinois. States reporting corn crop progress as of March 11 included Texas with 20% planted (23% as the recent five-year average for the date), Louisiana with 23% (6% average) and South Carolina with 4% (too early for an average). Net export sales of U.S. corn during the week ended March 8 for delivery in 201112 were 836,400 tonnes, up 88% from a week earlier, the U.S.D.A. said. MBN

Oats
Sales of food-grade oats flakes were steady last week. Prices rose as oats futures posted strong gains. The hot breakfast cereal season was drawing to a close with sales volumes down from a year ago, mainly because of the mild winter across the United States. Oats millers were concerned about lower planted area for oats in 2012 because of significant price advantages for other crops. U.S. oats planted area was record low in recent years. MBN

Rice
U.S. milled rice prices were unchanged last week. Rice byproduct prices were steady to weaker with bran and hulls steady to $5 a ton lower and millfeed unchanged. U.S.D.A. 2011 crop world milled rice prices were unchanged. CME Group rough rice futures were higher with spillover support from higher prices for other grains and on ideas 2012 rice plantings may be lower than expected. U.S. rice export sales during the week ended March 8 for delivery in 2011-12 were 75,500 tonnes, 2.8 times the prior week’s amount and up 56% from the four-week average, the U.S.D.A. said. MBN

Chicago corn and soy futures
Corn Futures $ per bu May July September December March May Soybeans May July August September November January Soybean Meal May July August September October December — Change from — Year Mar. 16 Mar. 9 Mar. 2 ago 6.73 6.70¼ 6.05¼ 5.74¼ 5.84¼ 5.90¾ $ per bu 13.74 13.80¾ 13.68¾ 13.47¼ 13.28¼ 13.28¾ $ per ton 374.40 375.70 371.90 365.90 357.50 356.10 +28 +26¼ +9¼ +11¾ +11¾ +11½ +36¼ +36 +31¼ +28½ +23 +22 +11.70 +11.60 +9.80 +7.90 +7.00 +7.20 +18 +14 +¾ +4¼ +4¼ +4 +41 +40½ +38¼ +35 +30¼ +27½ +15.30 +15.80 +13.90 +12.00 +10.10 +9.90 6.83½ 6.90 6.37 5.98½ 6.07 6.13½ 13.62½ 13.71½ 13.67¼ 13.50¾ 13.34 13.38½ 367.90 371.10 371.50 368.50 359.80 358.10

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt — Change from — Mar. 16 Mar. 9 Mar. 2 Soy ﬂour Bulk 25.72 @ 27.02 +.32@ +.58 +.35 @ +.76 Sacked 26.72 @ 29.02 +.32@ +.58 +.35 @ +.76

Rice
Offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash Mar. 16 Mar. 9 Mar. 2 ago Long grain 25.00@27.00 — — 25.50 Medium grain 27.00@27.50 — — 32.00 Parboiled 27.50@33.00 — — 30.50 Second heads, bulk 18.00@18.50 — — 15.00 Brewers 17.00 — — 12.00 f.o.b. mills, $ per ton Rice millfeed 80.00 — — 60.00 Rice bran 120@140 — -10.00 130.00 Rice hulls 30.00 — -5.00 15.00 U.S.D.A. 2011 crop world price milled - $ per cwt Long grain 17.99 — — 19.22 Medium/short grain 17.76 — — 18.89 Broken 12.73 — — 13.60 C.B.O.T. rough rice futures - $ per cwt May 14.53½ +0.38 +0.03 13.64 July 14.79½ +0.37 +0.02½ 13.94 September 15.03 +0.36½ +0.03 14.61 November 15.27 +0.36 +0.03 14.87
Milling & Baking News March 20, 2012 / 49

Corn meal
$ per cwt Mar. 16 24.06@ 26.55 25.83@ 28.38 25.73@ 28.28 28.15@ 30.67 — Change from — Mar. 9 Mar. 2 +.56@+.50 +.39@+.30 +.56@+.50 +.39@+.30 +.56@+.50 +.39@+.30 +.56@+.50 +.39@+.30 — Change from — Mar. 9 Mar. 2 +1.50 +41¾c — +1.25 +23½c —

Chicago, bulk Chicago, sacked New York, bulk New York, sacked

Oats
Minneapolis Mar. 16 Food grade ﬂakes, f.o.b., bagged, $ per cwt 30@30.50 Milling quality oats, No. 2 heavy, $ per bu 3.64¼ Oat hulls, $ per ton 25@35

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Milling & Baking News - March 20, 2012

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