Milling & Baking News - March 20, 2012 - 50

Ingredient Week 

Sweeteners
Sugar and corn sweetener markets were mostly routine and quiet last week. Some nearby trades of bulk reﬁned sugar occurred at steady price levels, but most interest was for 2013 coverage. Pricing of bulk reﬁned beet and cane sugar for 2013 was unchanged at around 41@45c a lb f.o.b. Midwest, with most “discussions” nearer to 41@42c. Pricing for 2014 ranged from 35@42c a lb f.o.b., but sales were few. Limited inquiries as far forward as 2015 were noted, but no sales for that period were evident. Spot-through-2012 pricing for bulk reﬁned sugar was unchanged at 51@51.5c a lb f.o.b. across all regions. Most business for 2012 was completed some time ago, and new activity was mostly of a ﬁll-in nature. There were reports of bagged sugar offered by one reﬁner through the end of March only below the 51c a lb. Nearby activity was subdued ahead of the April 1 “deadline” after which the U.S. Department of Agriculture may legally adjust the tariff rate quota. Buyers hoped the U.S.D.A. would announce an import quota increase. Sellers warned that if such an announcement was not forthcoming on or shortly after April 1, sugar prices may turn higher. Last year, the U.S.D.A. raised the T.R.Q. by 325,000 tons, raw value, on April 11, with the 2010-11 ending stocksto-use ratio at the time at 10.4%. The 201112 ending stocks-to-use ratio in the March 9 World Agricultural Supply and Demand

Estimates was at 9%. A ratio of 14% to 15% was considered optimum. Also last year, U.S. imports of sugar from Mexico totaled 492,677 tonnes, raw value, through the ﬁrst ﬁve months of the marketing year, more than 2.5 times the prior year’s amount for the same period. October 2011-February 2012 imports in the current marketing year at 351,756 tonnes were down 29% from the same period a year earlier. Mexico indicated it would publish an “open ended” 250,000-tonne sugar import quota in March to be used sometime during 2011-12 to offset tight supplies and rising domestic prices. Mexican sugar production this season has been running 10% to 15% below year-earlier levels. Recent unseasonably warm weather created concerns about the quality of remaining sugar beet piles in the Upper Midwest, which may result in a decline in sugar output. But with the slicing season winding down, losses were expected to be minimal. Despite forecasts of a larger global sugar surplus, New York world raw sugar futures prices rose last week on talk of shortages in Europe. Domestic raw sugar future prices also advanced. MBN

Bakery Shortening
Bookings of bakery shortening were limited last week. Prices were firm to stronger. Soybean oil prices advanced. Soybean

oil futures prices advanced with the rest of the soy complex. Soybeans and corn were locked in a battle for spring acres with the tussle all the more important in view of drought-reduced crops in South America and strong China demand for soybeans. The basis on soybean oil was steady with some refiners seeking to put additional business on the books amid uncertainty over demand from the biodiesel sector with the biofuel mandate in place but the blenders’ credit expired. Crude oil futures holding over $100 a barrel provided underlying support. Advancing futures prices pushed prospective buyers to the sidelines. Most major users had contract balances extending about 60 days. The National Oilseed Processors Association estimated the February soybean crush at 136,350,000 bus, down from 142,813,000 bus in January but up from 124,884,000 bus in February 2011. The February crush estimate was higher than the average pre-report trade estimate at 134.5 million bus. NOPA estimated U.S. soybean oil stocks at the end of February at 2,242 million lbs, up from 2,098 million lbs in January but down from 3,102 million lbs in February 2011. The NOPA stocks estimate compared with 2,126 million lbs as the average of pre-report trade estimates. Palm oil prices remained firm. Palm oil futures traded to nine-month highs in Malaysia. Corn oil prices were strong with supplies tightening. 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 Mar. 16 Mar. 9 Mar. 2 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Mar. 16 Year ago Midwest beet 51.00 @ 51.50 — — 58.00 26.625 East 23.375 27.875 net 33.85@37.85 173/8@ 213/8 153/8@ 193/8 Paciﬁc beet 51.00 @ 51.50 — — 58.00 Midwest 28.175 Midwest 24.925 29.425 net 32.85@36.85 Cane* 51.00 @ 51.50 — — 58.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 28.375 West 25.125 29.625 net 35.85@39.85 *Spot raw plus 7% plus 12.9c 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 April-June July-September October-December January-March April-June Mar. 16 34.70 34.70 34.60 33.35 33.25 32.50 — Change from — Mar. 9 Mar. 2 +.45 -.30 +.45 -.30 +.15 +.10 +.30 +.35 +.10 — -.15 -.40 Year ago 39.35 39.35 39.70 38.00 36.25 36.25

Chicago soybean oil futures
Bulk in tank cars, cents per lb Mar. 16 — Change from — Delivery close Mar. 9 Mar. 2 May 55.50 +1.23 +1.42 July 55.89 +1.22 +1.41 August 56.06 +1.23 +1.44 September 56.21 +1.23 +1.47 October 56.31 +1.20 +1.46 December 56.53 +1.16 +1.43 Year ago 55.77 56.35 56.54 56.70 56.64 56.78

Edible oils
Bulk, cents per lb Mar. 16 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 54.50 55.50 56.25 57.00 52.00 54.75 65.00 96.00 59.50 84.00 60.00 — Change from — Year Mar. 9 Mar. 2 ago +1.50 — +.25 +1.25 — +.50 — — +.25 — +1.75 +1.75 53.25 +3.00 52.00 +2.50 52.00 +1.50 53.50 +.25 58.00 +.50 -2.00 64.00 90.00

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

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. March 54.25 @54.50 April 54.25 @54.50 May 54.25 @54.50 June 54.45 @54.70 July 54.89 @56.64 August 55.06 @56.81 September 55.21 @56.96 Western points 53.50 @53.75 53.50 @53.75 53.50 @53.75 53.70 @53.95 54.39 @54.64 54.56 @54.81 54.71 @54.96

— 77.00 +1.50 75.00 — 107.00 +1.75 59.00

D
Current Year

50 / March 20, 2012 Milling & Baking News

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - March 20, 2012

Table of Contents for the Digital Edition of Milling & Baking News - March 20, 2012