Milling & Baking News - May 5, 2020 - 43

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Ingredient Week
Soy Products

Bookings of soy flour were limited last
week. Prices were little changed.
Soybean meal futures traded sideways
but near contract lows. Traders expected
the US Department of Agriculture on
May 1 to report a record soybean crush
for March. The resultant heavy supply
was expected to keep pressure on soybean
meal futures amid uncertainties over meal
demand because of closings or reduced
production at meat processing plants.
Most soy flour buyers, including bakers, have booked supply through the end
of 2020. Soy flour processors indicated
increased inquiry for coverage into 2021,
but this has yet to translate into contracting. Processors did not press 2021 coverage, encouraging users to hold off until
more is known about the 2020 crop's
prospects. Those asking what the price
may be for 2021 supply should expect a
heavy risk premium.
Soy flour processors continued to operate without interruption, but there was
some concern for plants located near
meat processing facilities whose workers
and operations have been affected by the
coronavirus pandemic.
The USDA said net export sales of soybean meal for delivery in 2019-20 during
the week ended April 23 totaled 163,600
tonnes, up 59% from the previous week and
up 13% from the prior four-week average.
The USDA indicated the soybean crop
in the 18 major producing states was 8%
planted by April 26 compared with 2% a
year ago and 4% as the recent five-year
average for the date. MBN

Corn Products

Sales of corn products remained
brisk last week. Prices edged lower

Chicago corn and soy futures
Corn Futures
$ per bu
May
July
September
December
March
May
Soybeans
May
July
August
September
November
January
Soybean Meal
May
July
August
September
October
December

-4¼
-4½
-2
-
+1
+2½

-10¾
-10¾
-8¼
-6¾
-5
-3¾

3.63
3.70¾
3.77¾
3.87¾
3.99¾
4.06½

+15 +14¾
+10
+7¼
+10¾ +6¼
+12
+4½
+13½
+4
+15¾
+4

8.29½
8.42¼
8.48¾
8.54
8.64¼
8.75

-.30
-.10
+.60
+1.10
+1.60
+1.70

293.60
298.20
299.40
300.90
302.10
304.50

bakingbusiness.com / world-grain.com

040_MBN_May5_20.indd 43

-.80
-.60
-.60
-.40
+.10
-

Oats

Bookings of food-grade oat flakes and
other oat products were limited last week.
Prices edged higher for spot supply.
For most major buyers, coverage extended through September, but ownership into the fourth quarter of 2020 remained light. New crop pricing was at a
discount to the nearby, but most buyers
were content to wait awhile longer before booking fourth-quarter needs.

Soy products

- Change from - Year
May 1 Apr. 24 Apr. 17
ago
3.11½
3.18½
3.25½
3.36¾
3.50¼
3.58¼
$ per bu
8.47¼
8.49½
8.50¾
8.51
8.55
8.57¾
$ per ton
287.40
292.50
293.30
294.30
295.00
297.00

with slumping corn futures a factor.
Corn futures languished near 10-year
lows. Sharply reduced demand for corn
from the ethanol sector has pulled critical support out from under both corn futures and the cash corn market.
Meanwhile, corn growers have made
excellent progress in seeding what was
expected to be a very large 2020 corn
crop. The US Department of Agriculture
said the crop in the 18 largest producing
states was 27% planted by April 26 compared with 12% a week earlier and 20% as
the recent five-year average for the date.
Many corn mills continued to run
nearly full tilt to supply customers who
produce dry corn products to the grocery sector. This demand was expected
to ease in the coming weeks as consumer demand for center-aisle corn-based
products becomes more stable. But that
was not yet the case.
Some buyers were booked through the
summer, but most attention remained
riveted on ensuring nearby needs were
addressed.
The USDA said net export sales of corn
for delivery in 2019-20 during the week
ended April 23 totaled 1,356,700 tonnes,
up 87% from a week earlier and up 19%
from the prior four-week average. MBN

Defatted, f.o.b. Midwest plant, $ per cwt
- Change from -
May 1
Apr. 24
Apr. 17
Soy flour
Bulk
32.45 @ 33.45
-
-
Sacked
34.45 @ 35.45
-
-

Mill operations and shipments remained brisk with buyers continuing
to draw early from contracts to ensure
they can keep up with grocer demand.
The rapid pace was expected to continue
even after consumer demand wanes as
buyers and grocers replenish stocks.
Oats futures have been climbing
steadily since mid-March reflecting the
tightening old crop supply.
The USDA said oats in the nine major states were 54% planted by April 26
compared with 41% a year ago and 56%
as the five-year average for the date. MBN

Rice

Business in milled and industrial rice
remained brisk last week. Millers continued to assist buyers to keep retail grocery shelves stocked with product. The
panic buying related to the spread of the
coronavirus pandemic was beginning
to subside, though. Most major buyers
have contracts extending through June
or even September. But most attention
remained on the nearby with covered
buyers pulling early from contracts. The
same pattern held true for buyers of brokens, extruded rice and rice flour.
Arkansas milled rice prices as quoted
by the US Department of Agriculture
were unchanged, but world rice prices
as quoted by the USDA continued to advance strongly.
Trading in rough rice futures was
erratic, but the trajectory remained higher
reflecting the tightening old crop supply.
The USDA indicated 39% of the
nation's rice crop was planted by April
26 compared with 36% a year ago and
53% as the five-year average for the date.
Rapid planting progress was expected in
the next week. MBN

Rice
Offers f.o.b. mills, $ per cwt, bagged

- Change from - Year
Cash
May 1
Apr. 24 Apr. 17 ago
Long grain
28.00@29.00
-
- 23.25
Medium grain
32.00
-
- 30.00
Parboiled
32.00
-
- 26.00
Second
Corn meal
heads, bulk 18.75@19.50
- +0.75 18.00
$ per cwt
15.50@18.50
-
- 15.50
- Change from - Brewers
May 1
Apr. 24
Apr. 17 f.o.b. mills, $ per ton
40.00
-
- 40.00
Chicago, bulk
13.75@ 14.00 -.09@-.09 -.21@-.21 Rice millfeed
100.00@105.00
-
- 90.00
Chicago, sacked 15.52@ 15.77 -.09@-.09 -.21@-.21 Rice bran
15.00
-
- 10.00
New York, bulk 15.42@ 15.67 -.09@-.09 -.21@-.21 Rice hulls
New York, sacked 17.84@ 18.09 -.09@-.09 -.21@-.21 U.S.D.A. world price milled - $ per cwt
Long grain
17.96
+0.52 +0.97 13.44
Oats
Medium/short
- Change from - grain
17.60
+0.51 +0.94 12.94
Midwest
May 1
Apr. 24 Apr. 17 Broken
11.39
+0.33 +0.61
8.11
Food grade flakes, f.o.b.,
C.B.O.T. rough rice futures - $ per cwt
bagged, $ per cwt
28.75@29.25 +.25
+.25
May
16.77½ +0.16½ +1.82 10.47
Milling quality oats, No. 2 heavy,
July
14.77½
+0.11 +0.52 10.75½
$ per bu
3.36¼
-16¾c
-1¾c
September
11.92½
+0.07 -0.18½ 10.86½
Oat hulls, $ per ton
25@35
-
-
November
11.71
-0.02 -0.33½ 10.91
Milling & Baking News

May 5, 2020 / 43

5/1/2020 3:06:44 PM

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Milling & Baking News - May 5, 2020

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