Food Business News - June 12, 2018 - 46
INGREDIENT MARKETS Sweeteners Domestic bulk refined sugar sales slowed from the brisk pace of activity seen a week earlier due in part to buyers and sellers attending the annual Sosland Purchasing Seminar. Prices were unchanged. Beet sugar offers for 2018-19 held at 34c a lb f.o.b. Midwest. Some sales to larger buyers continued at 33.5c a lb, but most activity was at 34c. Indications were that beet prices likely will be raised once processors pass a certain level of sales, due in Beet and cane sugar f.o.b. plant, cents per lb - Change from - June 8 June 1 May 25 Midwest beet 36.00 - - Pacific beet* 40.00 @ 41.00 - - Northeast cane** 37.00 @ 38.00 - - Year ago 30.50 35.00 36.00 *Delivered **Spot raw plus 7% plus 9.4c with 2% cash discount. Raw cane Delivered refiner, cents per lb - Change from - Contract June 8 June 1 May 25 Nearby 26.25 +1.30 +1.75 July-September 25.90 +.50 +.91 October-December 25.85 - -.03 January-March 26.10 +.15 +.21 April-June 26.10 +.10 +.21 July-September 26.20 +.05 +.05 Year ago 27.85 27.80 27.55 26.85 26.80 26.75 part to expected lower sugar beet production in 2018. Sugar booked for 2018-19 held at around 40% to 50% of potential, well behind 65% to 75% at the same time last year, when pricing was around 31c a lb f.o.b. Midwest and firming. Refined cane sugar for 2018-19 was offered at 35c to 36c a lb f.o.b. Southeast, 33.50c to 34.50c a lb f.o.b. Gulf and 36c to 37c a lb f.o.b. Northeast, all unchanged from a week earlier. Sugar beet crops were progressing well after a late start to planting in some states. Beet crop good-to-excellent ratings in the few states reporting were 85% in Idaho, 93% in Michigan, 60% in Colorado, 45% in Montana (52% fair), 70% in Washington and 60% in Oregon (all good), according to state U.S. Department of Agriculture offices. The condition of Louisiana's sugar cane crop was little changed from a week earlier but well below year-ago levels. Beet and cane sugar prices for the current year through Sept. 30 were unchanged and nominal with most buyers Sweeteners Delivered basis, cents per lb 42% HFCS spot price1 Midwest Northeast Southeast Southwest West June 8 24¾ @ 25¾ 26¼ @ 27¼ 26½ @ 27½ 26 @ 27 26¾ @ 28¾ Year ago 237/8@ 247/8 25¼ @ 26¼ 253/8@ 263/8 25 @ 26 257/8@ 277/8 55% HFCS spot price1 Midwest Northeast Southeast Southwest West June 8 30¼ @ 31¾ 31¾ @ 33¼ 31¾ @ 33¾ 31½ @ 33 32¼ @ 34¾ Year ago 29¼ @ 30¼ 30¾ @ 31¾ 30¾ @ 31¾ 30½ @ 31½ 31¼ @ 33¼ Regular corn syrup2 35.25 37.50 37.50 38.50 39.50 East Midwest West 1-Variations in prices often tied to tank car versus truck deliveries. Prices are the lowest available to the publication. 2-Regular 42 DE/43 Baume, f.o.b. tank cars, trucks 46 Food Business News Dextrose 39.50@41.00 38.50@40.00 41.50@43.00 well covered and most beet processors sold out. Tight supplies are expected in the July-September quarter, although demand also should be light. Craig Ruffolo, vice-president, McKeany-Flavell Co., at the Sosland Purchasing Seminar on June 4, forecast flat refined cane sugar prices in 2019 and firmer beet sugar prices. Despite adequate raw cane supplies, he said refined cane sugar supplies may tighten as the year progresses due to limited raw sugar refining days, keeping cane prices above beet sugar prices, adding that cane refiners need orders to keep refineries running at an adequate capacity. He also suggested the U.S.D.A. was too high in its forecasts for sugar deliveries for food, a sentiment that has been echoed by others in the industry. New offers of refined cane sugar from Mexico continued to be lacking. Corn sweetener markets were quiet last week. The U.S. corn crop was off to a strong start. Mr. Ruffolo forecast flat prices for 42% high-fructose corn syrup in 2019 and higher prices for glucose, which remained in strong demand as a functional ingredient. He noted ongoing overcapacity in the corn refining sector and indicated further consolidation may be needed. He said demand for 42% HFCS continued to weaken and demand for 55% HFCS was flat domestically and supported by export demand to Mexico. FBN June 12, 2018