Milling & Baking News - December 4, 2018 - 45

Ingredient Week

Edible Oils
Bookings of edible fats and oils expanded last week. Price adjustments were minor.
Soybean oil prices were left unchanged.
Soybean oil futures traded up and down
last week and closed slightly higher.
Early in the week, though, soybean oil
futures traded to the lowest levels since
mid-September. Some contracts set new
lows. Soybean oil futures seemed less
swayed, although not unmoved, by the
drama surrounding the meeting between
President Donald Trump and President
Xi Jinping scheduled for the evening of
Dec. 1 than soybean or soybean meal futures. Slumping crude oil futures exerted
some weight on the soybean oil market.
Crude oil futures have dropped about $25
a barrel from early October.
The early-week weakness in soybean
oil futures prodded several users to extend coverage. Buyers booked what supply was required to ensure contract balances extended about 70 to 75 days.
The basis on soybean oil was unchanged, although it must be noted some
refiners' offers were well above those indicated on this page as they asserted they
were sold out through the first quarter.

Spot soybean oil

Recent demand for soybean oil used
for manufacturing biodiesel has been exceptionally strong and provided one reason for some refiners to be short oil for the
first quarter.
Soybean oil basis coverage in the first
quarter of 2019 was estimated at about
75%, and second-quarter coverage was
estimated at about 15%.
The recent break in canola seed prices in Canada had yet to be reflected in
canola oil pricing in the United States, although it was expected improved crushing margins may result in lower pricing
in coming weeks. The premium to soybean oil futures asked for refined canola
oil in the Midwest was 9½c a lb.
Lard and edible tallow prices remained firm, buoyed by late demand
connected with the fall baking season.
Cottonseed oil pricing softened as the
market found that damage wrought to
the Southeastern cotton crop by Hurricane
Florence was not as extensive as feared.
Palm oil prices edged higher, but most
users in the United States booked their
needs through the baking season much
earlier. Malaysian palm oil futures recently traded to 39-month lows. MBN

Spot canola oil

Decatur, Ill., bulk, cents per lb

Reﬁned, Midwest, bulk, cents per lb

38.00

41.00

35.00

39.00
32.00
29.00

37.00

26.00
D

Previous Year

S
Current Year

35.00
D

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Nov. 30
- Change from -
Delivery
close
Nov. 23
Nov. 16
December 27.82
+.17
+.45
January
28.06
+.21
+.49
March
28.30
+.21
+.44
May
28.56
+.19
+.39
July
28.84
+.18
+.38
August
28.98
+.18
+.36

Year
ago
33.60
33.69
33.91
34.11
34.29
34.25

Crude soybean oil
Bulk in tank cars, cents per lb
Delivery
November
December
January
February
March
April
May

Decatur, Ill.
28.07 @29.07
28.07 @29.07
28.06 @29.06
28.18 @29.18
28.30 @29.30
28.43 @29.43
28.56 @29.56

Western points
27.57 @28.57
27.57 @28.57
27.56 @28.56
27.68 @28.68
27.80 @28.80
27.93 @28.93
28.06 @29.06

Edible oils
Bulk, cents per lb
- Change from - Year
Nov. 30 Nov. 23 Nov. 16 ago
Soybean oil,
Decatur
Loose lard, Chicago
Edible tallow,
Chicago
Cottonseed oil,
Miss. PBSY
Palm oil (R.B.D.), ports
Palm kernel oil
(R.B.D.), ports
Coconut oil
Peanut oil,
Southeast
Corn oil, Decatur
Sunﬂowerseed oil,
Midwest
Canola oil, Midwest

29.00
35.00

-
-

-
33.00
+2.00 37.50

34.00

+1.00 33.00

31.25
26.50

-.50
+.50

+.25
+.25

36.25
34.00

54.75
37.00

-
-

-.25
-2.00

34.75
73.00

64.00
29.75

-.50
+.25

65.00
36.25

53.00
37.25

-
-

+1.00 54.00
+.25 38.75

DEDICATED TO PROVIDING
YOU WITH THE HIGHEST
QUALITY SUGAR AND
CUSTOMER SERVICE
As a grower-owned Cooperative,
our growers care deeply for the
land that produces their crops
each year. This loyalty to the land
ensures our customers receive
sustainable, high-quality sugar.
We strive to make your experience
with us a "sweet" one.

bakingbusiness.com / world-grain.com

westernsugar.com
December 4, 2018 / 45
1-800-523-7497

Milling & Baking News

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Milling & Baking News - December 4, 2018

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