Milling & Baking News - June 26, 2012 - 45

Soy Products
Soy flour prices advanced last week. Soybean and soybean meal futures prices surged as weather worries intensified and concerns about supply surfaced amid ideas of downward revisions to new-crop soybean yields. Good seasonal demand was seen keeping soy flour prices relatively firm until December. Prospects for export opportunities further strengthened soy flour pricing. With prices rising, soy flour buying remained mostly on a month-to-month basis. Soybean futures rallied through midweek on dry weather concerns, retraced some gains Thursday mostly on outside market pressure, and edged higher on Friday. For the week, old crop soybean futures surged more than 60c a bu, or 5%, with new crop contracts up about 40c a bu. Soybean meal futures posted gains of more than $15 a ton, about 4%, for the week. Nearby July soybeans closed Friday at $14.42½ a bu, up 66½c for the week, with nearby July soybean meal at $422 a ton, up $11.90. The effects of early hot, dry weather were evident in lower soybean condition ratings in last Monday’s U.S. Department of Agriculture Crop Progress report. The U.S.D.A. rated 56% of the crop in the 18 major states in good-to-excellent condition as of June 17, down from 60% a week earlier and 68% in the same week a year ago. Soybeans were 95% emerged in the 18 states, well ahead of 77% in the same week a year ago and 81% for the 2007-2011 average for the date, and were 5% blooming, compared with 2% as the average. Export sales of U.S. soybeans for the week ended June 14 for delivery in 201112 were 163,800 tonnes, down 62% from a week earlier, down 61% from the prior

four-week average and a marketing-year low, the U.S.D.A. said. For the 2012-13 marketing year, net export sales were 444,200 tonnes. The two-year total was within the range of trade expectations. MBN

prior 4-week average, the U.S.D.A. said. For the 2012-13 crop year beginning Sept. 1, the U.S.D.A. reported net export sales of 210,600 tonnes. The two-year total fell at the bottom of trade expectations. MBN

Corn Products
Sales of corn grits was generally steady to slightly stronger last week. Prices were up modestly. Demand for cornmeal and flour remained steady, while demand increased slightly for larger flaking grits used in breakfast cereals, for extruded products used in snack foods and for brewers’ grits. Old crop/new crop spreading was volatile, with old crop prices being most affected by strength in nearby corn futures. With the exception of a “modest” gain in nearby July, corn futures prices soared about 36@48c a bu, or 9%, last week. Prices gained ground early in the week on weather concerns, declined on Thursday on pressure from outside markets, including sharp losses in equities, metals and crude oil, but advanced again Friday. Nearby July corn ended up 11½c for the week at $5.91 a bu, with December up 48c at $5.54 a bu. The condition of the U.S. corn crop deteriorated. Corn in the 18 major growing states was rated 63% good to excellent as of June 17, down from 66% a week earlier and 70% on the same date a year ago, the U.S. Department of Agriculture said in its weekly Crop Progress report. Five per cent of the crop was silking compared with 2% a year ago and as the five-year average. U.S. corn export sales for the week ended June 14 for delivery in 2011-12 were 171,400 tonnes, up 86% from a week earlier but unchanged from the

Oats
Bookings of food-grade oats flakes increased last week on catch-up buying by end users who still needed coverage through September. Prices advanced. Good warm weather seasonal demand continued for snack bars and cookies. The cash oats market stayed relatively steady compared with oats futures, which experienced volatility from trading by commodity funds. A sharp rally in corn futures last week provided a bullish bias to oats futures, which advanced along with corn. July oats futures closed Friday at $3.29 a bu, up 21¼c for the week. The U.S. oats crop in the nine major states was rated 67% good to excellent as of June 17, down from 73% a week earlier but significantly higher than 59% a year ago, the U.S.D.A. said. Oats were 79% headed, well ahead of 54% as the 2007-2011 average for the date. MBN

Rice
U.S. milled rice and rice byproducts prices were unchanged last week. U.S.D.A. 2011 crop world milled rice prices also were unchanged. Rough rice futures traded at the CME Group finished the week higher with row crop and wheat futures. Rice crop condition, as reported by the U.S.D.A., showed the crop in the six major states was rated 68% good to excellent as of June 17, down slightly from 69% a week earlier but up from 57% in the previous year. The crop was 12% headed. MBN

Chicago corn and soy futures
Corn Futures $ per bu July September December March May July Soybeans July August September November January March Soybean Meal July August September October December January — Change from — Year June 22 June 15 June 8 ago 5.91 5.51¼ 5.54 5.65 5.71¾ 5.77½ $ per bu 14.42½ 14.26 13.94¼ 13.75½ 13.74 13.36 $ per ton 422.00 419.70 412.90 406.90 404.20 397.90 +11½ +41¾ +48 +46½ +45½ +43 +66½ +69 +62¼ +61½ +37¼ +45¾ +11.90 +16.10 +16.00 +17.90 +18.50 +16.90 -7 +¼ +10 +9 +7¾ +7½ +16¼ +25½ +32¼ +43 +42¼ +32 -7.80 +0.70 +6.60 +14.20 +16.40 +14.80 6.70 6.57 6.32 6.44½ 6.52 6.58¾ 13.20¼ 13.15 13.10¾ 13.09¼ 13.19½ 13.26 339.90 341.10 339.40 336.30 336.90 338.70

Soy products
Defatted, f.o.b. Midwest plant, $ per cwt — Change from — June 22 June 15 June 8 Soy ﬂour Bulk 28.70 @ 29.05 +.60@ +.58 -.29 @ -.40 Sacked 29.70 @ 31.05 +.60@ +.58 -.29 @ -.40

Rice
Offers f.o.b. mills, $ per cwt, bagged — Change from — Year Cash June 22 June 15 June 8 ago Long grain 24.50@25.00 — — 23.50 Medium grain 27.00@27.50 — — 35.50 Parboiled 27.75@31.50 — — 28.50 Second heads, bulk 18.00@18.50 — — 15.00 Brewers 17.00@18.00 — — 12.00 f.o.b. mills, $ per ton Rice millfeed 60.00 — — 50.00 Rice bran 120.00@150.00 — — 125.00 Rice hulls 20.00 — — 10.00 U.S.D.A. 2011 crop world price milled - $ per cwt Long grain 18.61 — +0.34 18.81 Medium/short grain 18.39 — +0.34 18.49 Broken 13.17 — +0.24 13.31 C.B.O.T. rough rice futures - $ per cwt July 14.47 +0.55 +0.42 13.45 September 14.72½ +0.57½ +0.43 14.51 November 14.98½ +0.58 +0.42½ 14.83 January 14.23½ +0.55½ +0.39 15.15
Milling & Baking News June 26, 2012 / 45

Corn meal
$ per cwt June 22 Chicago, bulk 22.75@ 25.50 Chicago, sacked 24.52@ 27.33 New York, bulk 24.42@ 27.23 New York, sacked 26.84@ 29.62 — Change from — June 15 June 8 +.25@+.22 -.50@-.18 +.25@+.22 -.50@-.18 +.25@+.22 -.50@-.18 +.25@+.22 -.50@-.18

Oats
— Change from — Minneapolis June 22 June 15 June 8 Food grade ﬂakes, f.o.b., bagged, $ per cwt 29.25@29.75 +.75 +.75 Milling quality oats, No. 2 heavy, $ per bu 3.59 +21¼c +25¾c Oat hulls, $ per ton 25@35 — —

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Milling & Baking News - June 26, 2012

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