Milling & Baking News - January 14, 2020 - 44

Ingredient Week

Sweeteners

Beet and cane sugar
f.o.b. plant, cents per lb
- Change from -
Jan. 3 Dec. 27
-
-
...
...
-
-

2019-20
Jan. 10
Midwest beet
44.00
Paciﬁc beet*
NA
Northeast cane**
44.00

Year
ago
35.00
41.00
37.00

*Delivered **Spot raw plus 7% plus 15.5c with 2% cash discount.

Raw cane
Delivered reﬁner, cents per lb
Jan. 10
Nearby
25.85
February-March
25.85
April-June
26.40
July-September
27.18
October-December 27.00
January-March
26.53

- Change from -
Jan. 3 Dec. 27
-.03
-.03
-.03
-.03
+.25
+.20
+.35
+.40
+.10
+.25
-
+.15

Year
ago
25.35
25.35
25.50
26.07
26.23
26.16

I.C.E. No. 11 raw sugar futures
cents per lb
15.00
13.50
12.00
10.50
J

The sugar market was quiet last week
ahead of the Jan. 10 World Agricultural
Supply and Demand Estimates report
from the U.S. Department of Agriculture
and as traders returned to their offices
after the holiday break to evaluate the
unique situation in the U.S. sugar market.
The U.S.D.A. forecast the carryover of
sugar in the United States on Oct. 1, 2020,
(2019-20 ending stocks) at 1,556,000 short
tons, raw value, down 6% from its December projection and down 13% from
2019, resulting in an ending stocks-to-use
ratio of 12.7%, down from 13.5% in December and down from 14.5% in 2019.
U.S. 2019-20 sugar production was
forecast at 8,158,000 tons, down 122,000
tons from December and the lowest since
2010-11 as lower cane sugar outturn in
Louisiana more than offset slightly higher
beet sugar production. Total imports were
projected at 3,881,000 tons in 2019-20, up
21,000 tons from December, and projected
use was unchanged from December.
Beet sugar sellers mostly were on the
sidelines with supply sold out or destined
for select customers. Delivery restrictions
of 18% for United Sugars Corp. and 15%
for the Western Sugar Cooperative due

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

Jan. 10
Year ago
25½@ 26
25@ 25¾
27@ 27½ 26½@ 27¼
27¼@ 27¾ 26¾@ 27½
26¾@ 27¼ 26¼@ 27
27½@ 28¾ 27@ 28¾

55% HFCS spot price1
Midwest
Northeast
Southeast
Southwest
West

Jan. 10
32¾@ 33¾
34¼@ 35¼
34¼@ 35¼
34@ 35
34¾@ 35¾

Year ago
31¾@ 32¼
33¼@ 33¾
33¼@ 33¾
33@ 33½
33¾@ 35¼

Regular
corn
syrup3
37.25
39.50
39.50
40.50
41.50

Dextrose
East
42.00@42.50
Midwest 41.00@41.50
West
44.00@44.50
South
43.00@43.50

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

to force majeures declared last November kicked in Jan. 1. Attention turned to
refined cane sugar, with domestic supply
also tightening as indicated by the WASDE. Refined cane sugar still was available
at 44c a lb f.o.b. bulk in several regions.
At least two cane refiners were said to be
sold out through September.
Sellers continued to stress that buyers
need to concentrate on securing supply
sooner rather than later instead of on price.
The sugar market will be in uncharted
territory for most of 2020 with industry
pricing decisions and government import decisions more critical than usual.
If refined sugar prices, already at sevenyear highs, are raised too soon, there
may be a jump in high-tier imports that
may result in an oversupply (in the eyes
of producers) at some point. A price
jump also may prompt the U.S.D.A. to
boost refined sugar imports over raws,
which may then send prices lower in
short order. Action on tariff rate quotas
before April 1 would require an emergency declaration by the U.S.D.A., which
it was reluctant to do amid its normal
"cautious" approach. While the Jan. 10
WASDE data were important, the March
WASDE report, when the next revision
for Mexico is made.
Pricing for 2020-21 continued. Beet
sugar was offered at or just above 35c a lb
f.o.b. One processor noted it already had
sold more than 25% of its potential 202021 production, with another noting large
sales in the October-December quarter.
Most processors were reluctant to make
too large a commitment for next year until
the 2020 beet crop is in the ground, probably in April and May. Southeast cane sugar
was offered at 37c f.o.b. for 2020-21. MBN

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Amber, Light Amber, Extra Light Amber & Organic
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is committed to ethical and responsible sourcing.

44 / January 14, 2020

888-SUGAR-99
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Milling & Baking News - January 14, 2020

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