Milling & Baking News - February 25, 2020 - 52

Ingredient Week

Sweeteners

Beet and cane sugar
f.o.b. plant, cents per lb
- Change from -
2019-20
Feb. 21
Feb. 14 Feb. 7
Midwest beet
44.00 (n) -
-
Paciﬁc beet*
...
...
...
Northeast cane**
44.00
-
-

Year
ago
35.00
41.00
37.00

*Delivered **Spot raw plus 7% plus 14.3c with 2% cash discount. N = Nominal

Raw cane
Delivered reﬁner, cents per lb
- Change from -
Feb. 21 Feb. 14 Feb. 7
Nearby
26.95
+.30
+.95
April-June
26.95
+.30
+.50
July-September
27.43
+.23
+.13
October-December 27.45
-.05
+.45
January-March
26.55
-.03
-
April-June
26.40
-
-.05

Year
ago
25.85
25.85
26.65
26.05
25.85
26.30

I.C.E. No. 11 raw sugar futures
cents per lb
16.50
15.50
14.50
13.50
12.50
11.50
10.50
F

Activity in the spot cash sugar market was limited last week amid tight
supplies and multi-year high prices as
much of the sweetener industry headed
to Palm Springs, Calif., Feb. 23-26 for the
40th International Sweetener Colloquium. Offers for September 2020 and for
next year took a noticeable upturn.
Beet sugar for September 2020 through
the next marketing year (October
2020-September 2021) was offered at 36.5c
a lb f.o.b. Midwest, up 1.5c from a week
earlier. Indications were there also were offers at 36c a lb from another seller. Michigan beet sugar was offered at 38.5c a lb for
next year. Bulk refined cane sugar was offered by one refiner at 38c a lb f.o.b. Southeast, up 1c from the prior week. Another
refiner offered cane sugar at 41c a lb f.o.b.
at multiple locations for calendar 2021.
Pricing for next year assumed a return to
"normal" domestic beet and cane crops.
Spot bulk refined sugar prices were unchanged from a week earlier, but a bullish tone persisted as some distributors
considered price increases, in part, to slow
business as incoming imported supplies
were moving out at a rapid pace, indicating ongoing good demand, even if it was

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

Feb. 21
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

Feb. 21
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

only for a small percentage of overall use.
Refined cane sugar for this year still was
offered at 44c a lb f.o.b. bulk in several
regions by one major refiner, which continued to run extra weekend hours and
had refining capacity available. Delivered
prices of bulk refined cane from some distributors were near 50c a lb. At least two
cane refiners and nearly all beet sellers
were out of the market through September. One cane refiner last week was said
to be out of the market through December.
Beet processors were pinning hopes
on the 2020 beet crop, needing favorable
weather that would allow early planting
and more acres available for early harvest, which would make more new-crop
sugar available in September.
Traders still expected "the worst is yet to
come" for sugar supplies, as they contended the full impact of force majeures will
have greater impact as the year progresses.
While large imports were needed to fill
the gap left by domestic production, there
were doubts about whether Mexico will
have adequate supply to meet its U.S. export commitment based on slow harvest
progress of its drought-reduced cane crop.
There also was expected to be a growing "shift" in deliveries from beet sugar to
more refined cane sugar as the year progresses due to the tight beet sugar supply,
amplified by reduced deliveries from the
force majeures. The U.S. Department of Agriculture in its Feb. 18 Sugar and Sweeteners Outlook noted that U.S. sugar inventories on Dec. 31, 2019, were down 11% from
2018, with beet down 23% and cane down
8%. It remained to be seen if U.S. cane refiners have the capacity to handle the volume
of raw sugar imports needed this year.
The corn sweetener market was quiet. MBN

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52 / February 25, 2020

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Milling & Baking News - February 25, 2020

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