Milling & Baking News - November 27, 2012 - 46

Ingredient Week 

Sweeteners
The holiday-shortened week featured a quiet sweetener market, but prices remained under pressure from ample sugar supplies offered by domestic and Mexican sources. Bulk reﬁned beet sugar prices dropped below 35c a lb with quoted levels at 34c f.o.b. Midwest based on nearby sales, and material likely was available even lower. Most beet processors were well sold for 2012-13 but had some additional supply due to this year’s large beet crop. Cane sugar still was priced above beet, which gave an edge to beet sellers and dampened interest for cane sugar. Further pressuring sugar prices, especially for cane, were offers of Mexican cane sugar at levels below U.S. prices, at least in regions near the border where freight costs were the lowest. Mexican sugar was priced around 29c a lb f.o.b. Monterrey, Mexico, which allowed offers north of the border below 34c a lb delivered in some areas. Buying interest remained limited. Most buyers were well covered for next year, and those who weren’t had little urgency to book additional supply with the limited possibility of higher prices in the months ahead. Some nearby ﬁll-in business was seen, but interest in 2013-14 was lacking. The sugar cane harvest by Nov. 18 was 67% completed in Louisiana, up from 54% a week earlier and well ahead of 50% as the 2007-11 average for the date. With sugar beet harvest completed,

processors now awaited cooling temperatures that would allow beet piles to freeze and stay frozen. The corn sweetener market also was quiet during the holiday week. In spite of the prior week’s Nov. 16 deadline to secure corn reﬁners’ initial 2013 price offers, there appeared to be little business. One reﬁner raised offers 1c above original levels of around 4.25c a lb above 2012 contracted levels, but it appeared other corn reﬁners did not follow that lead. Buyers were gaining conﬁdence they could contract for corn sweeteners at levels lower than that sought by reﬁners. Earlier, buyers indicated they were open to a 3c-a-lb increase from 2012 levels. But since then, sugar prices declined (down 42% from a year ago and the lowest since May 2009) and the corn market weakened, although prices still were above year-ago levels and corn supplies were expected to remain tight until new crop becomes available next September. Weak sugar prices in Mexico and indications of ﬂat corn sweeter prices there also supported buyers’ willingness to hold out. MBN

Bakery Shortening
Bookings of bakery shortening were limited last week. Prices were mixed. Soybean oil prices advanced. Soybean oil futures prices moved higher in sympathy with the rest of the soy complex. The cash basis on soybean oil was unchanged and was thought to have bottomed for a

while with support coming from increased export sales and the outlook for a pickup in domestic demand in January as the 2013 biodiesel mandate takes effect. At the same time, the $1-a-gallon blending credit for biodiesel manufacturers, now expired, faced an uncertain future in Congress. The U.S. Department of Agriculture indicated net export sales of U.S. soybean oil during the week ending Nov. 15 totaled an impressive 124,100 tonnes with China among the principal buyers. Flat coverage of soybean oil was nearly solid through December. Generally, buyers owned a 60-day supply. Basis coverage for the first quarter of 2013 was estimated at around 80%. The spread between soybean oil and palm oil prices remained historically wide. A recent expansion in export demand for palm oil encouraged some analysts to trim their forecasts for Malaysian palm oil stocks by the end of 2012 from 3 million tonnes to around 2.7 million to 2.8 million tonnes. The new outlook may encourage a narrowing in the palm oil/ soybean oil spread. There also was a wide spread in meat fat prices. Lard prices advanced on lastminute demand related to the key baking season, but edible tallow prices struggled in comparison because of the still slack demand from the biodiesel sector. The premium asked for refined canola oil compared with soybean oil futures prices narrowed slightly to 10½c a lb. 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 Nov. 23 Nov. 16 Nov. 9 ago syrup3 Dextrose 42% HFCS wet 55% HFCS wet Nov. 23 Year ago Midwest beet 34.00 @ 35.00 -1.00 -1.00 58.50 26.625 East 23.375 27.875 net 33.85@37.85 173/8@ 213/8 153/8@ 193/8 Paciﬁc beet 35.00 @ 37.00 -1.00 -1.00 58.50 Midwest 28.175 Midwest 24.925 29.425 net 32.85@36.85 Cane* 35.00 @ 37.00 -1.00 -1.00 58.50 Northeast 18¾@ 22¾ 16¾@ 20¾ 28.375 West 25.125 29.625 net 35.85@39.85 *Spot raw plus 7% plus 10c 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 29.825 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 Nov. 23 Nov. 16 Nov. 9 Nearby 22.80 +.35 +.35 November-December 22.80 +.35 +.35 January-March 22.90 +.40 +.37 April-June 23.15 +.45 +.55 July-September 23.85 +1.10 +1.18 October-December 24.40 +.60 +1.70 Year ago 37.00 37.00 37.15 37.55 37.30 37.75

Chicago soybean oil futures
Bulk in tank cars, cents per lb Nov. 23 — Change from — Delivery close Nov. 16 Nov. 9 December 49.04 +1.99 +1.27 January 49.32 +1.95 +1.16 March 49.74 +1.91 +1.12 May 50.15 +1.83 +1.04 July 50.52 +1.78 +.97 August 50.62 +1.71 +.94 Year ago 48.23 48.44 48.87 49.19 49.47 49.57

Edible oils
Bulk, cents per lb — Change from — Year Nov. 23 Nov. 16 Nov. 9 ago Soybean oil, Decatur 46.50 Loose lard, Chicago 56.75 Edible tallow, Chicago 38.75 Cottonseed oil, Miss. PBSY 49.50 Palm oil, ports 41.50 Palm kernel oil, ports 44.25 Coconut oil 40.00 Peanut oil, Southeast 100.00 Corn oil, Decatur 54.75 Sunﬂowerseed oil, Midwest 69.00 Canola oil, Midwest 59.50 +2.00 +6.00 +.25 +2.00 +.50 — -1.00 +.50 -.50 — +1.50 +1.25 49.25 +5.00 50.00 -1.75 49.00

Spot soybean oil
Decatur, Ill., bulk, cents per lb
60.00 54.00 48.00 42.00 N F M Previous Year A Current Year

Crude soybean oil
Bulk in tank cars, cents per lb Delivery Decatur, Ill. November 45.79 @46.54 December 45.79 @46.54 January 46.07 @46.82 February 46.28 @47.03 March 46.49 @47.24 April 46.70 @47.45 May 46.90 @47.65 Western points 45.29 @45.79 45.29 @45.79 45.57 @46.07 45.78 @46.28 45.99 @46.49 46.20 @46.70 46.40 @46.90

+1.25 48.25 +1.00 52.00 +.25 -3.00 — -2.00 57.25 57.00 98.00 55.50

-2.00 91.00 +3.75 54.25

46 / November 27, 2012 Milling & Baking News

bakingbusiness.com / world-grain.com

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

Milling & Baking News - November 27, 2012

Table of Contents for the Digital Edition of Milling & Baking News - November 27, 2012