Milling & Baking News - December 17, 2019 - 44

Ingredient Week

Sweeteners

Beet and cane sugar
f.o.b. plant, cents per lb
2019-20
Dec. 13
Midwest beet
44.00
Paciﬁc beet*
NA
Northeast cane**
44.00

- Change from -
Dec. 6 Nov. 29
NA
NA
...
...
-
-

Year
ago
35.00
41.00
37.00

*Delivered **Spot raw plus 7% plus 15.4c with 2% cash discount.

Raw cane
Delivered reﬁner, cents per lb
- Change from -
Dec. 13 Dec. 6 Nov. 29
Nearby
25.90
+.10
-.40
January-March
25.90
-.17
-.42
April-June
26.20
-.40
-.60
July-September
26.80
-.20
-.40
October-December 26.90
-
-
January-March
26.35
-
-

Year
ago
25.25
25.25
25.50
26.15
26.40
26.35

I.C.E. No. 11 raw sugar futures
cents per lb
14.00

12.00

10.00
N

The U.S. Department of Agriculture, in
its Dec. 10 World Agricultural Supply and
Demand Estimates report, sharply raised
projected sugar imports from Mexico and
cut forecast domestic sugar production.
The import increase was made to boost
the projected 2019-20 U.S. sugar ending
stocks-to-use ratio to 13.5% as prescribed
in the U.S.-Mexico agreements suspending antidumping and countervailing duties on U.S. sugar imports from Mexico.
The changes made by the U.S.D.A.
were mostly expected by the trade, although the cuts in domestic beet and cane
sugar production were larger than many
had forecast. If realized, U.S. beet sugar
production at 4,367,000 tons, raw value,
would be the lowest since 2008-09, and total domestic sugar production at 8,280,000
tons would be the lowest since 2010-11.
Imports from Mexico were projected at
1,827,000 tons, up 63% from November
and up 83% from 2018-19. Some question
whether Mexico will be able to provide
the full amount of sugar needed at the required polarity (purity), considering that
country's harvest of a drought-reduced
cane crop is off to a slow start. Some see
the need for another near-term boost in

Sweeteners
Delivered basis, cents per lb
42% HFCS spot price1
Midwest
Northeast
Southeast
Southwest
West

Dec. 13
25@ 25¾
26½@ 27¼
26¾@ 27½
26¼@ 27
27@ 28¾

Year ago
24¾@ 25¾
26¼@ 27¼
26½@ 27½
26@ 27
26¾@ 28¾

55% HFCS spot price1
Midwest
Northeast
Southeast
Southwest
West

Dec. 13
31¾@ 32¼
33¼@ 33¾
33¼@ 33¾
33@ 33½
33¾@ 35¼

Year ago
30¼@ 31¾
31¾@ 33¼
31¾@ 33¼
31½@ 33
32¼@ 34¾

Regular
corn
syrup3
36.25
38.50
38.5 0
39.50
40.50

Dextrose
East
40.50@41.50
Midwest 39.50@40.50
West
42.50@43.50
South
41.50@42.50

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

refined sugar imports to get sugar into the
United States more quickly and to ease potential stress on U.S. cane refining capacity
as 70% of sugar imports are required to be
raw sugar that must be further refined.
Cane sugar continued to be offered
and was selling at 44c a lb f.o.b. in several regions, mostly from one refiner.
Beet sugar offers were limited although
material continued to flow from factories
with no delivery restrictions in the current
quarter. Two major beet sugar sellers will
impose delivery restrictions beginning
Jan. 1, 2020, through Sept. 30. Beet sugar
that was offered for new sales mostly was
limited to existing customers at firm prices
even with those of refined cane sugar.
Louisiana's cane crop was 77% harvested as of Dec. 8, up from 71% a week
earlier and with no comparison to last year
or the five-year average, according to the
state's U.S.D.A. field office. Comments in
the weekly update indicated good harvest
weather but sugar tonnage and yields
lower than hoped and some losses from
earlier freezes. The U.S.D.A., in its December WASDE, forecast Louisiana's 2019-20
sugar production at 1,712,000 tons, down
82,000 tons from its November.
In its Dec. 10 Crop Production report, the U.S.D.A. forecast 2019 production of sugar cane for sugar and seed at
32,695,000 tons, down 3.9% from November and down 5% from 2018.
There were ongoing inquiries into
2020-21 sugar pricing but no major sales.
Contracting for 2020 corn sweeteners
was completed. Liquid products were
contracted flat to mostly up $1 to $2 a cwt.
Dry dextrose was contracted at $1 to $2.50
a cwt higher with current supply tight due
to production issues at a corn refinery. MBN

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44 / December 17, 2019

Milling & Baking News

bakingbusiness.com / world-grain.com

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Milling & Baking News - December 17, 2019

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