Milling & Baking News - July 12, 2022 - 36

MARKET trends
TUES | 07 12 2022
RAW SUGAR FUTURES
July 8
Sweeteners
The cash sugar market appeared to be
in its typical summer doldrums last week
despite tight supplies and multi-year high
cane sugar prices. Further, the US government
took two actions recently to boost the
US raw sugar supply.
In an effort to relieve the tight sugar supply
situation in the current year, the US Department
of Commerce at the request of the US
Department of Agriculture increased Mexico's
export limit for " other " sugar (basically
raw) by 135,000 short tons, raw value, for entry
into the United States from July 1 to Sept. 30.
The USDA's Foreign Agricultural Service
on July 7 announced an increase of 90,718
tonnes, raw value, in the 2021-22 tariff-rate
quota for raw cane sugar. The USDA also
extended the time that the imports may
enter the United States to Oct. 31, one month
beyond the end of the current marketing
year. The new 2021-22 raw cane sugar TRQ is
1,207,913 tonnes.
Those actions should give cane refiners
additional raw supplies for processing
before the end of the marketing year. Cane
refiners in some cases were forced to buy
high-duty imports or take deliveries against
expiring futures contracts to have adequate
raw supplies for processing.
No. 16 domestic raw sugar futures prices
dropped after the increases for Mexico and
the TRQ, but there was no apparent impact
on cash sugar prices.
Beet processors remained out of the market
for this year and next. No beet sugar was
available on the spot market. For 2022-23
processors were awaiting continued devel2021-22
Midwest
beet
Pacific beet
Northeast cane*
REFINED SUGAR
July 8
. . .
. . .
68.00
. . .
. . .
-
- Change from -
July 1
July 24
. . .
. . .
-
Year
ago
36.50
37.00
48.00
f.o.b. plant, cents per lb
*Spot raw plus 7% plus 29.7¢ with 2% cash discount, effective through Dec. 31, 2022.
opment of beet crops before offering more
sugar for sale. Late planting in some key
areas took away much hoped-for supplies
for 2021-22 from early harvest, while additional
planted area in the Red River Valley
may give a boost to supplies in 2022-23.
Sugar beet crops were seen as " good, not
great " in most areas, which may result in
average production at a time when larger
supplies are needed. USDA state office beet
crop ratings as of July 3 rose from the prior
week in five states, were unchanged in one
and declined in two, but compared with a
year earlier, ratings were down in five states
and up in three.
The Louisiana sugar cane crop rating on
July 3 was unchanged from a week earlier
but was well above the year-ago level.
The USDA in its June 30 Acreage report
gave mixed signals for 2022 beet and cane
crops. Sugar beet harvested area was forecast
at 1,146,100 acres, up 38,500 acres from 2021,
while sugar cane harvested area was forecast
at 924,300 acres, down 10,900 acres from 2021.
Refined cane sugar continued to be
offered at 68¢ a lb f.o.b. on the spot market
nationwide. Refined cane was offered at
56¢ a lb Northeast and West Coast and 55¢
Gulf and Southeast for calendar 2023, all
unchanged from a week earlier.
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ICE No. 11
October
March
May
July
cents per lb
Most beet processors were not actively
selling for 2023-24, but sugar was available
for that period around 43¢ a lb f.o.b., with
some processors only offering for OctoberDecember
2022 (the first quarter of the 202223
marketing year).
The USDA on July 7 also announced the
initial 2022-23 (fiscal 2023) tariff-rate quota
for raw cane sugar at 1,117,195 tonnes, raw
value, the minimum of US commitments
under World Trade Organization agreements.
The refined and specialty sugar TRQs
will be announced by the USDA at a later
date as is typical.
Corn sweetener and starch markets
continued to be highly disrupted by production,
materials and shipping issues. Trade
sources indicated that most corn refiners
had users with contracts on allocation, limiting
shipments or restricting deliveries on a
monthly or quarterly basis, thus not allowing
early draws against contracts. Some
users were looking for alternative sweeteners,
including domestic sugar or imported
syrups. MBN
ICE No. 16
September
November
January
March
May
July
34.55
35.55
36.00
35.95
36.05
36.05
July 8
19.02
19.14
18.40
17.99
-.70
-.70
-.35
-.40
-.30
-.30
- Change from -
July 1 June 24
Year
ago
-1.10 36.25
-1.10
-.75
-.75
-.65
-.65
35.25
31.10
31.10
31.10
31.10
- Change from -
July 1 June 24
+.95
+.78
+.54
+.38
+.71
+.55
+.35
+.18
Year
ago
17.28
17.66
16.93
16.33
http://www.soslandpremium.com
Milling & Baking News - July 12, 2022

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