Food Business News - July 10, 2018 - 89
Edible Oils Bookings of edible fats and oils were limited last week. Prices were firm to stronger. Soybean oil prices edged higher. While soybean oil futures declined, the cash basis on soybean oil was raised. Weakness in soybean oil futures reflected the recent slump in soybean futures, which have dropped around $2 a bu from mid-May because of trade war worries. Soybean oil users mostly held to the sidelines last week with the result that contract balances extended only about 55 to 60 days. Soybean oil basis coverage was about 75% for July-September and less than 30% in the fourth quarter. The U.S. Department of Agriculture indicated net export sales of soybean oil for 2017-18 during the week ended June 28 totaled 36,600 tonnes, up 20% from the previous week and up noticeably from the prior four-week average. The U.S.D.A. indicated 5.17 million tons (172 million bus) of soybeans were crushed for crude oil in May 2018 compared with 5.15 million tons (172 million bus) in April 2018 and 4.74 million tons (158 million bus) in May 2017. Crude oil produced in May was 1.97 billion lbs, up slightly from April and up 7% from May 2017. Soybean once-refined oil production at 1.46 billion lbs during May 2018 increased 2% from April and increased slightly from May 2017. The premium to soybean oil futures asked for refined canola oil in the Use in Sauces, Soups, Blends, and More! Midwest widened to 9½c a lb. Supplies tightened. Also, with China expected to curtail imports of U.S. soybeans in the expanding trade confrontation between the two countries, at least for a time, China's imports of Canadian canola seed were expected to increase, which may further tighten supply available to U.S. canola oil buyers even further with the 2018 harvest still several weeks away. Lard and edible tallow prices strengthened. While slaughter numbers were in accord with expectations, average slaughter weights were lighter, which tightened supply even as buyers began to consider their needs for the upcoming fall baking season. Palm oil prices were unchanged. Palm oil futures set two-week lows. While production in both Malaysia and Indonesia fell short of expectations in June, export demand has been foundering since India, the world's largest edible oil importer, raised imports taxes on imported palm oil. FBN Spot soybean oil Decatur, Ill., bulk cents per lb 38.00 36.00 34.00 32.00 30.00 28.00 J O J Previous Year A Current Year Chicago soybean oil futures Bulk in tank cars, cents per lb Delivery July August September October December January July 6 close 28.90 29.02 29.11 29.22 29.46 29.72 - Change from - June 29 June 22 -.22 -.31 -.21 -.30 -.23 -.36 -.25 -.39 -.28 -.47 -.27 -.47 Year ago 32.78 32.85 32.97 33.08 33.32 33.47 Crude soybean oil Bulk in tank cars, cents per lb Delivery July August September October November December January Decatur, Ill. 28.40 @ 28.65 28.52 @ 28.77 28.61 @ 28.86 28.72 @ 29.22 28.84 @ 29.34 28.96 @ 29.46 29.47 @ 29.97 Western points 27.90 @28.15 28.02 @28.27 28.11 @28.36 28.22 @28.72 28.34 @28.84 28.46 @28.96 28.97 @29.47 Edible oils Bulk, cents per lb July 6 Soybean oil, Decatur Loose lard, Chicago Edible tallow, Chicago Cottonseed oil, Miss. PBSY Palm oil (R.B.D.), ports Palm kernel oil (R.B.D.), ports Coconut oil Peanut oil, Southeast Corn oil, Decatur Sunflowerseed oil, Midwest Canola oil, Midwest - Change from - Year June 29 June 22 ago 28.75 33.50 +.25 +.50 +.25 +.50 33.00 34.75 31.00 +1.00 +1.00 36.25 29.50 +1.00 +1.00 38.75 31.50 - - 35.00 59.50 47.00 - +2.00 - +2.00 38.25 84.00 68.00 33.25 - +.50 - +.50 76.00 39.75 54.00 - - 50.00 38.50 +.75 +.75 39.00 Your #1 choice for all types of mushrooms! White, Cremini, Portabella, Specialty Mushrooms F R E S H | FROZEN | ROASTED | ORGANIC S Kennet Square (HQ) Atlanta, GA Dallas, TX Houston, TX New Orleans, LA July 10, 2018 Business News 89 Email: info@southmill.com | Phone: (610)Food 444-4800 | southmill.com