Milling & Baking News - August 07, 2012 - 46

Ingredient Week 

Sweeteners
Sugar markets were mostly quiet last week while the corn sweetener market watched 2012 corn prospects wither. Prices of bulk reﬁned sugar for 2012 remained mostly in the range of 42@45c a lb f.o.b. Midwest, although indications were West coast prices were closer to 43@45c. Limited ﬁll-in trading continued in the Midwest within the quoted range. Trading for next year was slow with little activity other than inquiries in the West. Prices held at 39@41c a lb f.o.b. Midwest, with West coast prices said to be in the “low 40s.” Traders suggested buyers who wanted total or partial coverage for 2013 had taken it earlier while those who still had uncovered needs were in no hurry to book amid ideas sugar supplies will be adequate. The condition of the U.S. sugar beet crop deteriorated in the latest week and, with the exception of Minnesota, ratings were below year-ago levels. Beet crops rated good to excellent on July 29 were 66% in North Dakota (73% a week earlier), 74% in Minnesota (72%), 62% in Colorado (64%) and 57% in Wyoming (57%), according to U.S.D.A. ﬁeld ofﬁces. The Louisiana sugar cane crop was rated 75% good to excellent, up from 72% a week earlier and 46% a year ago. The Florida cane crop was progressing well. The ﬁrst U.S. 2012 sugar beet and cane crop production forecasts will be released in the Aug. 10 Crop Production

report, as will revisions to this year’s and next years’ sugar supply and use estimates. But the key number anticipated by the trade on Aug. 10 will be the ﬁrst surveybased 2012 U.S. corn crop estimate, which has signiﬁcant implications for 2013 corn sweetener supplies and prices. With the latest U.S.D.A. corn crop rating at 24% good to excellent and 48% poor to very poor, numerous trade estimates have put corn production at between 10 billion and 11 billion bus, far below the U.S.D.A.’s initial projection of 14.8 billion bus. With prospective corn supplies sharply down and prices up about 50% since midJune and about 15% above year-ago levels, prospects for higher corn sweetener prices loomed. But the scenario gets complicated if prices for exported high-fructose corn syrup surpass sugar prices in Mexico. If that happens, additional HFCS supply may be available in the United States, which may limit potential price gains. At the same time, that means Mexico may export less sugar to the north, which may then drive U.S. sugar prices higher. MBN

Bakery Shortening
Bookings of bakery shortening were limited last week. Price changes were mixed. Soybean oil prices were unchanged after trading both higher and lower earlier in the week. Soybean oil futures traded both sides of unchanged and ended

steady. The cash basis on soybean oil showed little change. Most soybean oil users on market dips in the previous few weeks completely covered their needs through September with some extending contract balances into the fourth quarter. Most held back on fourth-quarter business, though, with eyes trained on crop conditions and ears tuned to weather forecasts. While the drought was expanding, many veteran crop observers said there was time for the soybean crop to be rejuvenated should August be more generous with moisture than the early summer. Still, forecasts weren’t very promising. Palm oil prices declined. Export demand for palm oil was termed mediocre, and stocks were plentiful, which weighed on pricing. Most U.S. users of palm oil already booked their needs for the baking season. The premium to soybean oil futures prices asked for refined canola oil in the Midwest held at 4c a lb. Canada was forecast to harvest a record canola crop this year, which encouraged canola oil users to exercise patience with regard to extending coverage into the new crop year. The North Dakota crop was 14% swathed by July 28 compared with 3% as the average for the date. Sunflowerseed oil prices were steady. The North Dakota crop was 51% blooming compared with 15% as the average. Seventy-one per cent of the crop was rated good to excellent. 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 Aug. 3 July 27 July 20 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Aug. 3 Year ago Midwest beet 42.00 @ 45.00 — — 57.00 26.625 East 23.375 27.875 net 33.85@37.85 173/8@ 213/8 153/8@ 193/8 Paciﬁc beet 43.00 @ 45.00 +1.00 +1.00 57.00 Midwest 28.175 Midwest 24.925 29.425 net 32.85@36.85 Cane* 42.00 @ 45.00 — — 59.00 Northeast 18¾@ 22¾ 16¾@ 20¾ 28.375 West 25.125 29.625 net 35.85@39.85 *Spot raw plus 7% plus 10.4c 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 August-September October-December January-March April-June July-September — Change from — Aug. 3 July 27 July 20 28.75 -.15 -.65 28.75 -.15 -.65 29.25 -.10 -.15 29.65 +.65 +.85 29.70 +.65 +.90 29.75 +.80 +1.00 Year ago 39.20 39.20 39.75 39.50 40.00 39.75

Chicago soybean oil futures
Bulk in tank cars, cents per lb Aug. 3 — Change from — Delivery close July 27 July 20 August 52.04 — -2.32 September 52.28 +.05 -2.28 October 52.47 +.05 -2.29 December 52.88 +.07 -2.30 January 53.14 +.07 -2.23 March 53.37 +.11 -2.17 Year ago 54.90 55.00 55.17 55.55 55.83 56.08

Edible oils
Bulk, cents per lb — Change from — Year Aug. 3 July 27 July 20 ago Soybean oil, Decatur 50.75 Loose lard, Chicago 52.75 Edible tallow, Chicago 50.25 Cottonseed oil, Miss. PBSY 52.50 Palm oil, ports 47.00 Palm kernel oil, ports 49.50 Coconut oil 53.00 Peanut oil, Southeast 110.00 Corn oil, Decatur 58.50 Sunﬂowerseed oil, Midwest 75.00 Canola oil, Midwest 56.00 — +1.50 -1.75 — -2.50 -2.25 — — +1.50 — — -1.75 -1.25 -1.00 -2.25 -3.00 -4.50 — 54.00 63.25 60.75 54.00 57.25 63.75 84.00

Spot soybean oil
Decatur, Ill., bulk, cents per lb
61.00 55.00 49.00 43.00 37.00 31.00 A N F
Previous Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. August 50.29 @50.79 September 50.53 @51.03 October 50.97 @51.47 November 51.18 @51.68 December 51.38 @51.88 January 51.64 @52.14 February 51.76 @52.26 Western points 49.54 @49.79 49.78 @50.03 50.22 @50.47 50.43 @50.68 50.63 @50.88 50.89 @51.14 51.01 @51.26

— 94.00 +1.25 64.25 -4.00 -2.00 95.00 59.50

M
Current Year

46 / August 7, 2012 Milling & Baking News

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Milling & Baking News - August 07, 2012

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