Milling & Baking News - July 23, 2013 - 38

Ingredient Week 

Sweeteners
Cash sugar prices declined last week
as some sellers sought to move excess
supply in the current marketing year. But
sales were limited as most demand for
2012-13 already was filled.
Lower offers for cane sugar appeared
to lead the market lower with spot cane
offered at 25½c a lb, and in some cases as
low as 25c, f.o.b. the refinery for nearby
delivery and with minimum volume
requirements. Beet sugar was said to be
offered at 25½c a lb f.o.b., also for nearby
delivery. Most buying inquiries were for
2014, but trading also was slow for next
year. Offers were modestly above nearby
levels, but some traders expected nearby
values to “bleed” into next year.
Some traders attributed price weakness
to the U.S. Department of Agriculture’s
recent purchase and redistribution of
sugar, and most saw it as a precursor to
inevitable forfeitures, barring some major
weather event or new action from the
U.S.D.A. to reduce supply. Government
loans on 45,000 tons of sugar come due
Aug. 1, which would be the earliest date
for forfeitures. It should be noted that
some companies have been paying off
outstanding government loans, thus
reducing total forfeiture potential.
The U.S.D.A. on July 10 purchased
about 91,238 tonnes of domestic sugar
that was then exchanged for 264,705
tonnes of refined sugar re-export credits
and 34,448 tonnes of Certificates of

Beet and cane sugar
— Change from — Year
July 19 July 12 July 5 ago
25.50 @ 27.00 -1.00
-1.00 42.00
26.00 @ 28.00 -1.50
-1.50 42.00
25.50 @ 28.00 -2.00
-2.00 42.00

*Spot raw plus 6.5% plus 10c with 2% cash discount.

Raw cane
Delivered reﬁner, cents per lb
— Change from —
Contract
July 19 July 12 July 5
Nearby
19.20
+.35
+.40
August-September 19.20
+.35
+.40
October-December 19.25
+.35
+.25
January-March
19.95
+.65
+.25
April-June
20.55
+.60
+.50
July-September
21.05
+.50
+.55

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

Edible Oils
Bookings of bakery shortening
expanded last week. Prices of most
ingredients declined.
Soybean oil prices declined. Soybean
oil futures prices declined even as
soybean and soybean meal futures
advanced. The share of soybean oil in the

Delivered basis, cents per lb
42% HFCS spot price1

Midwest
Northeast
Southeast
Southwest
West

July 19
203/8@ 233/8
21¾@ 24¾
217/8@ 247/8
21½@ 24½
223/8@ 253/8

HFCS list price2

42% HFCS wet
Year ago
25.875
173/8@ 213/8
27.375
18¾@ 22¾
27.625
187/8@ 227/8
27.125
18½@ 22½
27.875
193/8@ 233/8

55% HFCS wet
30.375 net
31.875 net
32.125 net
31.625 net
32.375 net

Regular
corn
syrup3
Dextrose
29.125 East
34.85@37.85
30.625 Midwest
33.85@36.85
30.875 West
36.85@39.85
30.375
31.125

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

Year
ago
29.40
29.40
29.40
28.80
28.80
28.75

Chicago soybean oil futures
Bulk in tank cars, cents per lb
July 19
— Change from —
Delivery
close
July 12
July 5
August
45.50
-.72
-1.64
September 45.47
-.70
-1.32
October
45.34
-.54
-1.00
December 45.32
-.43
-.72
January
45.41
-.42
-.62
March
45.55
-.43
-.63

Edible oils
Bulk, cents per lb
Year
ago
54.36
54.56
54.76
55.18
55.37
55.54

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
July
45.75 @46.00
August
45.75 @46.00
September
45.72 @45.97
October
44.34 @44.59
November
44.33 @44.58
December
44.32 @44.57
January
44.41 @44.66
38 / July 23, 2013 Milling & Baking News

value of the soybean crush traded as low
as 32% in the case of old crop supply and
was as low as 36% to 37% for new crop.
The cash soybean oil basis edged lower.
The National Oilseeds Processors
Association estimated the June soybean
crush at 119.05 million bus, down from
122.63 million bus in May but higher than
the average of pre-report trade estimates
at 116 million bus. Heavy demand for
soybean meal was the principal reason for
the strong crush level. NOPA estimated
soybean oil stocks on June 30 at 2.3 billion
lbs, down from 2.5 billion lbs a month
earlier. While soybean oil stocks were
declining, the rate of the decline has been
slow with demand for soybean oil for use
in manufacturing biodiesel increasing
slower than expected.
Soybean oil users took advantage of
declining futures prices to book what
supply was necessary to keep contract
balances extended 45 to 60 days.
Palm oil prices declined with palm oil
futures prices trading to seven-month lows.
A softer soybean oil market was a factor.
Also, palm oil production was increasing
seasonally, and there were concerns over
possible European Union legislation that
may cap biodiesel use in diesel production
for cars and trucks at 5%, which would
adversely affect palm oil demand.
The premium asked for refined canola
oil versus soybean oil futures prices
narrowed on the good outlook for a strong
Canadian crop. MBN

Sweeteners

f.o.b. plant, cents per lb

Midwest beet
Paciﬁc beet
Cane*

Quota Eligibility to manage the domestic
sugar surplus. Those changes, along
with adjustments for tariff rate quota
and imports from Mexico, and smaller
adjustments to domestic production and
deliveries, slashed the projected 2013-14
ending stocks-to-use ratio from 22.4% in
June to a more manageable 16.8% in July.
Most in the trade expected the U.S.D.A.
to take additional action to manage the
surplus. Among the tools still at the
department’s disposal is the Feedstock
Flexibility Program that would shift
sugar to ethanol production.
Mexico remains the key in determining
sugar supply with open access to U.S.
markets, and many in the trade expected
shipments to remain strong or increase.
Sugar beet and cane crop condition
ratings on July 14 were steady to higher
than a week earlier, according to U.S.D.A.
state field offices. Good to excellent
ratings were 55% in North Dakota, 76% in
Minnesota, 72% in Wyoming and 80% in
Colorado. Louisiana’s cane crop was 66%
good to excellent.
Corn sweetener markets were quiet. MBN

Western points
45.00 @45.50
45.00 @45.50
44.97 @45.47
43.59 @43.84
43.58 @43.83
43.57 @43.82
43.66 @43.91

— Change from — Year
July 19 July 12 July 5 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

46.00
49.75

-1.00
+1.00

-2.00
+.75

52.50
54.00

49.50

-.50

—

51.25

46.00
39.75

-1.00
-1.50

-1.75
-1.25

54.75
50.00

45.25
41.00

-1.25
-1.00

-.25
-1.00

54.00
53.00

83.00
41.00

-2.00
-.50

-2.00 110.00
-2.00 57.25

64.00
53.00

—
-2.25

—
-2.75

79.00
58.00

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Milling & Baking News - July 23, 2013

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