Milling & Baking News - January 28, 2020 - 45

Ingredient Week

Edible Oils
Bookings of edible oils and fats expanded last week. Prices were mostly
lower with the exception of the meat fats.
Soybean oil prices weakened with
soybean oil futures and the cash basis on
soybean oil both lower for the week.
Soybean oil users took advantage of
the dip in pricing to purchase what supply was required to ensure contract balances extended 80 to 85 days.
Soybean oil futures continued to retreat from contract highs set at the beginning of January largely in sympathy
with slumping soybean futures but also
on a National Oilseed Processors Association report issued the previous week
that indicated the soybean crush was
stronger and soy oil stocks were higher
than expected by the trade.
Soybean futures were pressured by
lingering uncertainty over China buying
under the phase one trade deal signed
Jan. 15 and an outstanding start to what
was expected to be another record Brazilian soybean harvest.
The cash basis on soybean oil declined
on ample supplies in view of the recent
heavy soybean crush.

Spot soybean oil

Soybean oil basis coverage was virtually complete through the first quarter and
was 75% covered in the second. Thirdquarter coverage was less than 25%.
Palm oil users in the United States
were said to be buying hand-to-mouth
in hopes prices ease in the next several
weeks. Forward coverage was light. Prices were about 10c a lb higher than a year
ago. Palm oil prices declined last week
with the weaker soybean oil futures market a significant consideration.
Palm oil futures as traded on the
Bursa Malaysia Derivatives Exchange
advanced slightly last week.
Canola prices weakened, which encouraged several U.S. buyers to extend
coverage. The premium to soybean oil
futures asked for refined canola oil in the
Midwest remained 5c a lb.
Agriculture and Agri-Food Canada on
Jan. 23 projected area seeded to canola
for harvest this year to decline 2% from
2019. Canadian canola production in 2020
was forecast to fall slightly to 18.5 million
tonnes versus 18.6 million tonnes in 2019.
The market for specialty oils including
organic, high-oleic and non-G.M.O. oils remained strong amid tightening supplies. MBN

Spot canola oil

Decatur, Ill., bulk, cents per lb

Reﬁned, Midwest, bulk, cents per lb

36.00

41.00

34.00

39.00

32.00

37.00

30.00
28.00

35.00

26.00
J

Previous Year

O
Current Year

33.00
J

Chicago soybean oil futures
Bulk in tank cars, cents per lb
Jan. 24
- Change from -
Delivery
close
Jan. 17
Jan. 10
March
32.02
-1.33
-2.33
May
32.37
-1.30
-2.29
July
32.74
-1.28
-2.26
August
32.83
-1.27
-2.22
September 32.90
-1.26
-2.20
October
32.93
-1.25
-2.20

Year
ago
30.03
30.34
30.64
30.77
30.89
30.99

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

Decatur, Ill.
32.02 @32.27
32.02 @32.27
32.02 @32.27
32.45 @32.70
32.62 @32.87
32.81 @33.06
32.99 @33.24

Western points
31.27 @31.52
31.27 @31.52
31.27 @31.52
31.70 @31.95
31.87 @32.12
32.06 @32.31
32.24 @32.49

Edible oils
Bulk, cents per lb
- Change from - Year
Jan. 24 Jan. 17 Jan. 10 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

Premium flour
since 1906

32.25
33.25

-1.50
+.50

-2.50 30.50
+1.00 31.50

36.75

+1.75

+2.00 33.00

39.75
39.25

-.50
-.50

-1.25
-1.50

35.50
29.50

67.50
47.00

-.50
-4.00

-2.25
-

58.50
39.00

59.00
34.50

-
-

-
-.25

61.50
29.75

70.00
37.00

...
-1.25

...
-2.25

53.00
38.00

SHAWNEE FLOUR
Bakers, H & R
Food Service/Retail
Private Label
All Purpose

Self-Rising
Whole Wheat
Custom Mixes

SHAWNEE CORN MEAL
White/Yellow
Meal, Flour, Cones, Coarse
Self Rising

OKEENE FLOUR
Bakers, Pastry, Whole Wheat

Shawnee Milling Company
P.O. Box 1567, Shawnee, OK 74802-1567
405-273-7000
Okeene Milling Company
P.O. Box 1000, Okeene, OK 73763
580-822-4411

smarchetti@shawneemilling.com
bakingbusiness.com / world-grain.com

Milling & www.shawneemilling.com
Baking News
January 28, 2020 / 45

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

Milling & Baking News - January 28, 2020

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