Milling & Baking News - May 18, 2021 - 52

MARKET trends

TUES

RAW SUGAR FUTURES

05 18 2021

Sweeteners

New US Department of Agriculture data
shed light on the US sugar market last week
but had little impact on pricing, which was
unchanged for both this and next year, or on
sales, which continued to plod along for the
2021-22 marketing year that begins Oct. 1.
The USDA's Sweetener Market Data report
showed deliveries for human consumption
in March down 8.7% from a year earlier, and
October-March deliveries (comprising the
first half of the 2020-21 marketing year) down
3.1%. Beet sugar deliveries in March were up
15% (compared with a weak March 2020 due
to force majeures by two major processors)
but were down 17% for cane sugar (compared
with record high deliveries in March 2020).
The picture was clouded going forward,
though, in part due to mixed delivery
reports from processors and refiners. Some
have reported soft deliveries in April continuing into May. But others have indicated
steady to strong deliveries. There were
variations between beet and cane refiners,
by sector (industrial, retail, foodservice), by
type (bulk/bags), and geographically.
As a result, some believed the USDA's
forecast use for 2020-21, which has been
unchanged since being lowered in the March
World Agricultural Supply and Demand
Estimates report, may still be too high.
In its May WASDE, the USDA lowered
the forecast 2020-21 ending stocks-to-use
ratio to 14.7% from 15.1% in April mainly due
to a 45,000-ton decline in domestic sugar
production. Some still suggested the beet
sugar number was too high, although it was
raised again in the May report.

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REFINED SUGAR

- Change from - Year
ago

2020-21
May 14
May 7 Apr. 30
Midwest beet 36.50
-
-
Pacific beet
37.00 @ 40.00 -
-
Northeast cane* 44.00
-
-

44.00
...
46.00

f.o.b. plant, cents per lb
**Spot raw plus 7% plus 8.7¢ with 2% cash discount. N = Nominal

A 50,000-ton increase in imports from
Mexico (announced in April) was nearly
offset by an increase in the tariff-rate quota
shortfall of 48,000 tons. Both situations bore
close watching with world supplies tightening and Mexico's production also trimmed,
although sources noted Mexico still would
have plenty of sugar to export by diverting shipments from other countries to the
United States if needed.
Another ongoing area of concern has been
excess raw sugar supplies in the Gulf, which
exceed Louisiana refiners' capacity. Trade
sources said supplies have been moving out
of the region to East Coast refineries despite
strict shipping rules in the Jones Act that
require American vessels and crews. That
movement has been encouraged by nearby
raw sugar futures prices above 31¢ a lb.

May 14

- Change from - Year
May 7 Apr. 30
ago

ICE No 16
July
September
November
January
March
May

+.81 +1.26 25.80
+.50 +.91 25.90
+2.65 +2.95 26.10
+1.24 +1.65 26.50
+1.24 +1.44 26.50
+1.09 +1.30 26.70

32.21
32.00
32.45
29.65
29.65
29.50

May 14

- Change from - Year
May 7 Apr. 30
ago

ICE No 11
July
October
March
May

-.53 -.02 10.38
-.50 +.20 10.50
-.47 +.28 11.21
-.40 +.38 11.18

16.96
17.06
17.09
16.27

Cents per lb

Spot prices of bulk refined sugar were
unchanged at 44¢ a lb f.o.b. in the Northeast
and West Coast, 39¢ a lb in Michigan, 36.50¢
a lb in the Midwest, 38.50¢ to 42¢ a lb in the
Southeast and 38¢ to 42¢ a lb in the Gulf.
Prices for 2021-22 also were unchanged
with a firm tone. Northeast and West Coast
were at 42¢ a lb, Michigan at 38¢, Midwest at
36.50¢, Southeast at 38.50¢ to 39.50¢ and Gulf
at 38¢ to 39.50¢.
Corn sweetener markets were quiet. Buyers anticipated higher prices in 2022 due
in part to recent eight-year highs in corn
futures. MBN

CORN SWEETENERS
42% HFCS spot price1

May 14

Year ago

Midwest 25½ @ 26
25½ @ 26
Northeast
27 @ 27½
27 @ 27½
Southeast 27¼ @ 27¾ 27¼ @ 27¾
Southwest 26¾ @ 27¼ 26¾ @ 27¼
West 27½ @ 28¾ 27½ @ 28¾

55% HFCS spot price1

May 14

Year ago

Midwest 32¾ @ 33¾ 32¾ @ 33¾
Northeast 34¼ @ 35¼ 34¼ @ 35¼
Southeast 34¼ @ 35¼ 34¼ @ 35¼
Southwest
34 @ 35
34 @ 35
West 34¾ @ 35¾ 34¾ @ 35¾

Corn syrup3

Dextrose

37.25
39.50
39.50
40.50
41.50

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

Delivered basis, cents per lb
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

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Milling & Baking News - May 18, 2021

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