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

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

http://www.sweetenersupply.com

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