Milling & Baking News - June 26, 2012 - 46

Ingredient Week 

Sweeteners
Sweetener markets were seasonably quiet last week with a number of traders vacationing. Sugar prices were mostly unchanged, though raw sugar prices tumbled. Buyers seemed well aware of this price weakness. Midwest beet sugar was said to still be selling around 45c a lb f.o.b. for nearby delivery, but there also were indications of trades as low as 42c a lb for the current year. Cane sugar was more available at 46c a lb, but some suggested sales were closer to beet levels. Offers remained at 48c a lb in most cases, but sugar was not trading at that level. Buyers sought lower levels after the U.S. Department of Agriculture a week earlier raised the estimated 2011-12 ending stocks-to-use ratio to 15.5% and said supplies were sufﬁcient not to warrant a June tariff-rate quota increase. Weakness came amidst limited trading needed for the rest of the marketing year with processors well sold and buyers mostly well covered. Weakness also was evident in 201213 activity. Week-earlier prices from 40c to 42c a lb f.o.b. Midwest still were evident for some trades. But there were indications of activity for 2012-13 dipping to 38c a lb. The lowest prices generally were associated with largevolume sales to regular customers. The amount of remaining business for 201213 varied compared with the limited volume for the current year.

The sugar beet crop showed some deterioration in condition, with the exception of North Dakota. Beet crops rated good to excellent on June 17 were 76% in Minnesota (77% a week earlier), 84% in North Dakota (78%), 67% in Colorado (77%) and 55% in Wyoming (58%), according to U.S.D.A. state ﬁeld ofﬁces. New York world raw sugar futures posted solid advances before giving even more back on Friday. Support came from rain-delayed cane harvesting, crushing and shipping in Brazil, with expected dryness pressuring futures Friday. Domestic futures aslo trended lower for the week with the premium to world values shrinking. Corn sweetener markets were routine. Although a record-large 2012 corn crop was expected to pressure 2013 corn sweetener contract values, the market watched for the effects of unseasonably hot, dry weather on the crop. The U.S. Senate passed its version of the new farm bill last week without an amendment to reform the U.S. sugar program. Sugar users vowed to continue their ﬁght as the House takes up the farm bill in coming weeks. MBN

Bakery Shortening
Bookings of bakery shortening were limited last week. Price changes were irregular. Soybean oil futures prices advanced in sympathy with the rest of the soy complex, which, in turn, derived strength

principally from weather-related worries for the fall crops in the United States. Choppy trading in the dollar index in a range below recent highs posted at the end of May failed to give direction. The cash basis on soybean oil was unchanged from the previous week but softer than in most recent weeks as refiners looked for business in the third and fourth quarters. Soybean oil users were buyers any time soybean oil futures prices dipped to 49c or below. Recent bookings extended contract balances through the end of July for most users. Most major users earlier covered the soybean oil basis component of contracts through the third quarter. Palm oil futures prices recently hit 13-month lows. Demand from the European biodiesel sector has been below expectations. Palm oil users in the United States have been contracting supply for the upcoming baking season. Offers on refined canola oil, basis the U.S. Midwest, widened their premium to soybean oil futures prices to 5c a lb. Canola refiner margins were poor, and operating schedules have been trimmed. Corn oil bookings were limited with most buyers already having taken fairly extensive coverage, at least through the third quarter. Lard and edible tallow prices declined even as the prices of most vegetable oils rose. Relative weakness in the biodiesel sector was a factor, and demand for the baking season was yet to materialize. 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 June 22 June 15 June 8 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet June 22 Year ago Midwest beet 45.00 @ 48.00 — -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 45.00 @ 48.00 — -1.00 55.00 Midwest 28.175 Midwest 24.925 29.425 net 32.85@36.85 Cane* 46.00 @ 48.00 — — 55.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 28.375 West 25.125 29.625 net 35.85@39.85 *Spot raw plus 7% plus 14.7c 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 — Change from — Contract June 22 June 15 June 8 Nearby 28.40 -.55 -.35 July-September 28.40 -.55 -.95 October-December 29.25 -.75 -.75 January-March 28.55 -.60 -.90 April-June 28.65 -.70 -.85 July-September 29.25 -.75 -1.15 Year ago 35.40 35.40 35.05 35.15 35.95 35.90

Chicago soybean oil futures
Bulk in tank cars, cents per lb June 22 — Change from — Delivery close June 15 June 8 July 49.74 +1.30 +.28 August 49.84 +1.22 +.17 September 50.04 +1.24 +.15 October 50.17 +1.22 +.07 December 50.50 +1.21 +.01 January 50.77 +1.21 +.02 Year ago 55.22 55.36 55.61 55.86 56.36 56.62

Edible oils
Bulk, cents per lb — Change from — Year June 22 June 15 June 8 ago Soybean oil, Decatur 48.50 Loose lard, Chicago 53.25 Edible tallow, Chicago 49.00 Cottonseed oil, Miss. PBSY 50.00 Palm oil, ports 46.75 Palm kernel oil, ports 48.75 Coconut oil 56.00 Peanut oil, Southeast 114.00 Corn oil, Decatur 54.25 Sunﬂowerseed oil, Midwest 79.00 Canola oil, Midwest 54.75 +1.25 -1.00 -3.50 +1.00 -1.75 -2.00 — +6.00 -3.75 — +1.75 +.25 -1.50 -2.50 +.25 -2.00 54.00 57.75 57.75 53.25 55.75

Spot soybean oil
Decatur, Ill., bulk, cents per lb
61.00 55.00 49.00 43.00 37.00 31.00 J S D
Previous Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. June 48.24 @48.49 July 48.24 @48.49 August 48.34 @48.59 September 48.54 @48.79 October 48.67 @48.92 November 48.84 @49.09 December 49.00 @49.25 Western points 47.49 @49.54 47.49 @49.54 47.59 @49.64 47.79 @49.84 47.92 @49.97 48.09 @50.14 48.25 @50.30

-1.50 67.50 +3.00 90.00 +2.00 78.50 -2.75 70.00 -3.00 103.00 +1.50 58.75

M
Current Year

46 / June 26, 2012 Milling & Baking News

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Milling & Baking News - June 26, 2012

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