Milling & Baking News - June 11, 2013 - 46

Ingredient Week 

Sweeteners
Cash sugar prices were steady last
week. Additional coverage was taken
nearby through 2015 by some users.
Sugar beet planting edged forward but
remained behind the average pace.
Bulk refined beet sugar traded at
26½@27 a lb f.o.b. Midwest for spot
through September 2013 delivery, within
the prior week’s range. Cane sugar
continued to be priced about 1c above
beet sugar, mostly near 28c a lb. Pricing
for 2013-14 and 2014-15 was about 2@4c
above nearby values, mostly around
28@30c a lb f.o.b. Midwest.
Traders noted continued buying interest
for nearby through 2015, suggesting
more users may be sensing prices have
bottomed. Sellers pointed to delays in
sugar beet planting, the prospect that
some acres in the Red River Valley may
not be planted due to wet conditions, and
possible action at some point by the U.S.
Department of Agriculture to remove
surplus sugar from the domestic market
as signs the market has more upside than
downside potential.
At the same time, others noted the large
surplus in Mexico and the likelihood of
increased shipments to the United States,
which may pressure U.S. values. Some
renewed selling interest by Mexico was
noted with values at or below U.S. prices.
Traders expected the U.S.D.A. to raise
its forecast of 2012-13 Mexican sugar
production in its June World Agricultural

Beet and cane sugar

Supply and Demand Estimates.
Marginal progress was made in sugar
beet planting the week ended June 2.
Planting in the four largest producing
states was 96% completed, up from 94%
a week earlier but behind 100% a year
ago and 98% as the 2008-12 average for
the date, the U.S.D.A. said in its weekly
Crop Progress report. Emergence was
100% in Idaho (97% as the average for the
date), 34% in North Dakota (73%), 59%
in Colorado (81%) and 40% in Wyoming
(59%), state U.S.D.A. field offices said.
Louisiana sugar cane ratings improved
to 57% good to excellent from 48% a week
earlier but were still behind 71% a year
ago, the state U.S.D.A. field office said.
Corn sweetener markets were routine
and quiet. Wet weather continued to
delay the completion of corn planting
with analysts forecasting 1 million to
3 million intended acres may not get
planted. Still, a much larger crop than in
2012 was expected, which may pressure
corn sweetener values in 2014. MBN

Bakery Shortening
Bookings of bakery shortening expanded last week. Price changes were
mixed.
Soybean oil prices traded sideways.
Soybean oil futures prices edged higher but dipped below 48c a lb at points.
The cash basis on soybean oil was unchanged and remained historically high.
In the past couple of weeks, it has come

under some pressure as refineries closed
for maintenance for part of May came
back on stream and as demand from the
biodiesel sector developed more slowly
than expected. While the basis may continue to decline, merchants expected
demand from the biodiesel sector to expand, which would temper any downtrend. At the end of 2012, the cash basis
was trading around 300 points below
current levels. Those levels were not expected to be seen during the remainder
of the 2012-13 marketing year.
The drop in soybean oil futures prices below 48c a lb unleashed a flurry of
transactions with several pricing targets
having been set just under that level.
The booking pushed contract balances
forward to around 60 days from 45 days.
The strong basis levels discouraged
aggressive booking of basis; nevertheless, basis coverage for July-September
increased to around 70%.
While palm oil futures prices hit fiveweek highs, cash palm oil prices in the
United States were little changed.
The premium asked for refined canola
oil compared with soybean oil futures
prices narrowed by a half-cent per lb but
remained historically wide. The spread
will have to continue to narrow if canola
oil is to begin trading in volume again.
There was some optimism generated by
strong planting progress across the Canadian Prairies, where canola planting
was said to be about 70% completed. 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
June 7
May 31 May 24 ago
syrup3
Dextrose
42% HFCS wet 55% HFCS wet
June 7
Year ago
Midwest beet 26.50 @ 28.00
—
—
46.00
29.125 East
25.875
30.375 net
34.85@37.85
203/8@ 233/8 173/8@ 213/8
Paciﬁc beet
27.50 @ 30.00
—
—
46.00 Midwest
30.625 Midwest
27.375
31.875 net
33.85@36.85
Cane*
27.50 @ 29.00
—
—
46.00 Northeast 21¾@ 24¾ 18¾@ 22¾
30.875 West
27.625
32.125 net
36.85@39.85
*Spot raw plus 6.5% plus 10c 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
July-September
October-December
January-March
April-June
July-September

— Change from —
June 7 May 31 May 24
19.15
-.25
-.35
19.15
-.40
-.45
19.45
-.65
-.55
19.90
-.30
-.30
20.30
-.55
-.70
20.80
-.65
-.60

Year
ago
28.75
29.35
30.00
29.45
29.50
30.40

Spot soybean oil
Decatur, Ill., bulk, cents per lb
60.00
54.00
48.00
42.00
J

D
Previous Year

M
Current Year

46 / June 11, 2013 Milling & Baking News

Chicago soybean oil futures
Bulk in tank cars, cents per lb
June 7
— Change from —
Delivery
close
May 31
May 24
July
48.53
+.15
-.71
August
48.55
+.17
-.61
September 48.40
+.19
-.58
October
48.10
+.16
-.56
December 47.94
+.13
-.55
January
47.87
+.13
-.54

Edible oils
Bulk, cents per lb
Year
ago
49.46
49.67
49.89
50.10
50.49
50.75

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
June
48.93 @49.03
July
48.93 @49.03
August
48.95 @49.05
September
48.80 @48.90
October
48.50 @48.60
November
48.42 @48.52
December
48.34 @48.44

Western points
48.28 @48.78
48.28 @48.78
48.30 @48.80
48.15 @48.65
47.85 @48.35
47.77 @48.27
47.69 @48.19

— Change from — Year
June 7 May 31 May 24 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

49.00
44.75

—
+.50

-1.25
+.25

46.75

+1.75

+1.30 51.50

48.75
41.50

-.25
-.25

47.00
38.50

+1.00
—

+1.00 50.25
—
53.00

82.00
44.50

—
-.50

— 112.00
-1.75 57.00

64.00
59.00

—
-.50

—
-1.75

-1.00
—

48.25
54.75

49.75
48.75

82.00
53.25

bakingbusiness.com / world-grain.com

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

Milling & Baking News - June 11, 2013

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