Milling & Baking News - December 10, 2013 - 38

Ingredient Week 

Sweeteners
Cash sugar prices were unchanged
last week, although there continued to
be reports of some nearby cane sugar offered below quoted values for spot shipment only. Corn sweetener negotiations
appeared to be progressing as buyers
sought deeper discounts from 2013.
A couple of processors were withdrawn from the market, having already
sold a significant volume of their potential 2013-14 refined sugar production.
Other processors remained firm in offering refined beet sugar at 28c a lb f.o.b.
Midwest. There was little indication of
new sales, and activity typically is slow
between Thanksgiving and the New
Year's holiday. Buyers generally are well
covered for most of 2014.
Extremely cold weather moving
across the Upper Midwest was ideal for
freezing beet piles, processors said.
Refined cane sugar continued to be
"tradeable" mostly at 28.50c a lb f.o.b.,
although some still was offered as high
as 33c a lb. At the same time, some
bagged cane sugar was offered as low
as 27c a lb (bulk equivalent) for immediate shipment through December only by
one refiner.
Sugar for 2014-15 continued to be offered slightly above 2013-14 levels, but
new sales also were slow to nil last week.
The U.S.D.A.'s tender to sell the remaining 79,750 tons of refined beet and
raw cane sugar forfeited Oct. 1 that went

Beet and cane sugar
- Change from -
Dec. 6
Nov. 29 Nov. 22
Midwest beet 28.00 @ 28.25
-
-
Paciﬁc beet
29.00 @ 32.00
-
-
Cane*
28.50 @ 32.00
-
-
*Spot raw plus 7% plus 6.8c with 2% cash discount.

Raw cane
Delivered reﬁner, cents per lb
Dec. 6
19.75
20.00
20.75
21.60
22.05
22.35

Year
ago
22.25
22.45
22.75
22.95
23.60
23.70

57.00
53.00
49.00
45.00
41.00
37.00

J
Previous Year

Dec. 6
20⅜@ 23⅜
21¾@ 24¾
21⅞@ 24⅞
21½@ 24½
22⅜@ 25⅜

HFCS list price2

42% HFCS wet
Year ago
22.875
17⅜@ 21⅜
24.375
18¾@ 22¾
24.625
18⅞@ 22⅞
24.125
18½@ 22½
24.875
19⅜@ 23⅜

55% HFCS wet
27.375 net
28.875 net
29.125 net
28.625 net
29.375 net

Regular
corn
syrup3
26.125
27.625
27.875
27.375
28.125

Dextrose
East
32.85@34.85
Midwest 31.85@33.85
West
34.85@36.85

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 -
Nov. 29 Nov. 22
-.40
-.65
-.50
-.65
-.65
-.65
-.45
-.50
-.45
-.50
-.35
-.40

Decatur, Ill., bulk, cents per lb

Delivered basis, cents per lb
42% HFCS spot price1

Year
ago
33.00
35.00 Midwest
35.00 Northeast
Southeast
Southwest
West

Spot soybean oil

Bakery Shortening
Bookings of bakery shortening were
light last week. Prices were mixed.
Soybean oil prices ended unchanged.
Soybean oil futures traded nearly sideways for the week. The cash basis on
soybean oil was unchanged.
Most soybean oil users maintained
contract balances extending around 60
days. Basis-only coverage in the first

quarter of 2014 was estimated at 50%
to 60% with many prospective buyers
holding back amid expectations the cash
basis would weaken in the weeks ahead.
Statistics Canada on Dec. 4 raised its estimate of Canadian canola production to
a record 17,960,000 tonnes, up 1,997,000
tonnes, or 13%, from the September forecast and up 4,291,000 tonnes, or 30%,
from 13,869,000 tonnes in 2012. Statistics
Canada said, "This was the result of a record average yield of 40 bus per acre, up
42.3% from 2012, which more than offset
a 9% decline in harvested area."
The extent of the hike in the canola
estimate took the trade by surprise. The
premium to soybean oil futures asked
for refined canola oil in the Midwest
narrowed to 4c a lb from 4¼c the week
before. Sustaining the still relatively
wide premium in the face of the record
Canadian crop were logistical snarls
connected with efforts to handle a record
wheat crop as well as the canola crop. It
was expected once logistical constraints
ease, canola oil pricing will drop. The refined oil already was being offered at a
discount to soybean oil for shipment in
the first quarter.
Coconut oil prices were unchanged but
down 4c a lb from a couple of weeks ago.
Damage in the Philippines from Typhoon
Haiyan still was being assessed.
Lard prices advanced in response
to last-minute baking-related demand
ahead of Christmas. MBN

Sweeteners

f.o.b. plant, cents per lb

Contract
Nearby
January-March
April-June
July-September
October-December
January-March

unsold in its Nov. 14 tender closes Dec.
11. The sugar was offered to bioenergy
producers and for the first time for other
non-food uses, including livestock and
bee feed and pet food.
There appeared to be progress in 2014
corn sweetener negotiations last week with
some traders expecting to wrap up contracts before the Christmas break. At the
same time, some buyers appeared to "dig
in" as they sought sharper discounts from
2013 prices. While a smattering of business has been done around 3c a lb below
2013 levels, more buyers last week seemed
determined to hold out for cuts of 3@4c a
lb. Corn refiners' initial offers in early November were mostly down 2@2¾c a lb from
2013. Buyers cited lower sugar prices and
sharply lower corn prices from 2012, the
record large 2013 U.S. corn crop, and uncertainty about sugar and high-fructose corn
syrup demand in Mexico as price-pressuring factors. They also noted that in most
recent years, buyers who held out longer
were rewarded with lower prices. MBN

S
Current Year

38 / December 10, 2013 Milling & Baking News

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Dec. 6
- Change from -
Delivery
close
Nov. 29
Nov. 22
December 40.28
+.06
-.88
January
40.49
+.03
-.96
March
40.89
+.03
-.93
May
41.29
+.02
-.91
July
41.67
+.01
-.92
August
41.80
-.02
-.93

Edible oils
Bulk, cents per lb
Year
ago
50.82
51.13
51.62
52.08
52.46
52.39

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
Decatur, Ill.
December
38.03 @38.28
January
38.24 @38.49
February
38.44 @38.69
March
38.64 @38.89
April
39.34 @39.59
May
39.54 @39.79
June
39.73 @39.98

Western points
. . . @. . .
37.74 @37.99
37.94 @38.19
38.14 @38.39
38.84 @39.09
39.04 @39.29
39.23 @39.48

- Change from - Year
Dec. 6 Nov. 29 Nov. 22 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

38.25
48.00

-
+3.75

-1.25
-1.00

48.50
52.00

39.00

+1.50

+1.75 37.25

41.75
42.75

-
-.25

-1.00
-.25

51.25
40.00

48.50
64.00

+.75
-

+.75
-4.00

43.00
40.00

77.00
38.50

-
-

57.00
44.25

-
-.25

+2.50 99.00
-.25 53.00
-
-1.25

69.00
59.25

bakingbusiness.com / world-grain.com

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

Milling & Baking News - December 10, 2013

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