Milling & Baking News - February 19, 2013 - 54

Ingredient Week 

Sweeteners
The Feb. 8 U.S. Department of Agriculture World Agricultural Supply and
Demand Estimates added to the forecast
2012-13 domestic oversupply of sugar
but contained no surprises. There remained questions about whether forecast deliveries still may be too high.
There also was little new light shed on
the market at the International Sweetener
Colloquium Feb. 10-13 in Bonita Springs,
Fla. The consensus appeared to be that
burdensome supplies will continue to
weigh on prices through 2014 and that
with domestic raw futures and refined
beet sugar within a few cents of forfeiture levels, it was a matter of when, not
if, sugar will be diverted to the feedstock
flexibility program for the first time.
Nearby world raw sugar futures in
New York sank to 30-month lows under
18c a lb on Thursday. Domestic raw sugar futures also were at multi-year lows
with nearby May under 21c a lb.
Sales of bulk refined beet sugar for
2012-13 were confirmed at 28c a lb f.o.b.
Midwest. The market was mostly around
28@30c in a wide range of 27@31c, with
the lowest values said to include special
circumstances. Weakness in Midwest beet
prices continued to weigh on Northeast
cane and West coast beet and cane sugar values, while low-priced offers from
Mexico added even more pressure to
prices in the South and Southwest.
Pricing for 2013-14 or for calendar

Beet and cane sugar

2014 was said to be mostly in the range
of 28@30c a lb, f.o.b. Midwest, with sales
at 28c confirmed. More negotiations for
2014 bookings were initiated on the sidelines at the colloquium.
Additionally last week, the U.S.D.A.
issued its initial 2013-14 (and longerrange) sugar beet and cane acreage and
production estimates, which may be
revised at this week’s Outlook Forum.
Harvested area for sugar beets was
projected down 10% from 2012 and for
sugar cane down 2%, with 2013-14 combined beet and cane sugar output at 8.5
million tons, down 8% from 2012-13.
U.S. corn sweetener markets were quiet as contracting for 2013 was completed.
The major question facing corn sweeteners concerns Mexico, where sugar cane
growers have become more vocal about
the volume of U.S. high-fructose corn
syrup displacing their sugar in Mexico’s
beverage industry. Of course, much of
the U.S. HFCS shipped to Mexico is offset by exports of Mexican sugar to the
United States, which cane growers in
Mexico are trying to increase.
Heavy Mexican sugar supplies will
add instability to the U.S. market. MBN

Bakery Shortening
Bookings of bakery shortening were
limited last week. Price changes were
mixed.
Soybean oil prices edged higher. Soybean oil futures prices declined in early

trading but bounced back to finish with
minor gains for the week. The cash basis
on soybean oil firmed as the market considered prospects for tightening supply
in the months ahead, particularly as the
anticipated increase in demand from the
biodiesel sector takes hold.
Soybean oil users added to contract balances when futures prices dipped early in
the week. The activity ensured most buyers’ contract balances extended 30 to 45
days. Basis coverage for April-June was estimated at 85%, leaving buyers to pick their
time for completing contracts by booking
futures. Basis coverage for the third quarter
was estimated at about 40%. Those lacking basis coverage for the second and third
quarters faced booking basis at the higher
levels. Third-quarter basis levels were said
to be 75 points above the nearby.
The U.S. Department of Agriculture
indicated net export sales of U.S. soybean oil during the week ended Feb. 7
totaled 16,600 tonnes, down 35% from
the previous week and down 22% from
the prior four-week average.
Palm oil prices were little changed.
Despite a seasonal decline in production
and ongoing export demand, stocks in
Malaysia and Indonesia have dropped
only slightly.
The premium asked for refined canola
oil compared with soybean oil futures
prices widened to 8c a lb. Peanut oil
prices dropped with more peanuts available to refiners. MBN

Sweeteners
Delivered basis, cents per lb
42% HFCS spot price1

f.o.b. plant, cents per lb

HFCS list price2
Regular
— Change from — Year
corn
Feb. 15
Feb. 8 Feb. 1 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
Feb. 15
Year ago
Midwest beet 28.00 @ 31.00 -1.00
-1.00 51.00
29.125 East
25.875
30.375 net
34.85@37.85
203/8@ 233/8 173/8@ 213/8
Paciﬁc beet
30.00 @ 34.00 -1.00
-1.00 53.00 Midwest
30.625 Midwest
27.375
31.875 net
33.85@36.85
Cane*
30.00 @ 34.50 -1.00
-1.00 52.00 Northeast 21¾@ 24¾ 18¾@ 22¾
30.875 West
27.625
32.125 net
36.85@39.85
*Spot raw plus 7% plus 9.55 with 2% cash discount.
Southeast 217/8@ 247/8 187/8@ 227/8
30.375
27.125
31.625 net
Southwest 21½@ 24½ 18½@ 22½
Raw cane
31.125
27.875
32.375 net
West
223/8@ 253/8 193/8@ 233/8
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
February-March
April-June
July-September
October-December
January-March

— Change from —
Feb. 15 Feb. 8 Feb. 1
20.35
-1.65 -1.15
20.35
-.30
-1.15
20.35
-.30
-1.40
21.30
-.30
-1.00
22.30
+.25
-.75
23.15
+.20
-.50

Year
ago
32.95
32.95
32.95
33.35
34.00
32.85

Spot soybean oil
Decatur, Ill., bulk, cents per lb

60.00
54.00
48.00
42.00

A
Previous Year

N
Current Year

54 / February 19, 2013 Milling & Baking News

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Feb. 15
— Change from —
Delivery
close
Feb. 8
Feb. 1
March
51.62
+.19
-1.37
May
52.01
+.16
-1.40
July
52.32
+.18
-1.38
August
52.22
+.12
-1.45
September 51.92
+.08
-1.44
October
51.48
+.18
-1.32

Edible oils
Bulk, cents per lb
Year
ago
53.40
53.80
54.15
54.26
54.36
54.40

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
February
50.12 @50.37
March
50.12 @50.37
April
50.32 @50.57
May
50.51 @50.76
June
50.67 @50.92
July
51.57 @51.82
August
51.47 @51.72

Western points
49.37 @49.87
49.37 @49.87
49.57 @50.07
49.76 @50.26
49.92 @50.42
50.82 @51.32
50.72 @51.22

— Change from — Year
Feb. 15 Feb. 8 Feb. 1 ago
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

50.25
45.00

+.25
-3.50

-1.25
-5.00

52.75
50.75

41.00

-.25

-2.25

53.25

51.50
42.25

—
-.25

-1.75
—

55.00
50.25

44.00
41.50

-1.50
—

-1.50 50.75
+1.00 67.00

81.00
52.75

-9.00
-.50

-12.00 93.00
—
57.50

65.00
59.50

—
+.75

—
-.50

84.00
57.50

bakingbusiness.com / world-grain.com

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

Milling & Baking News - February 19, 2013

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