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Corn Sweetener Prices 2014: Sweet or Sour?. October 17, 2013. How to Participate Today. 2. 1. Open and close your Panel View, Select, and Test your audio Raise your hand Submit text questions. 3. 4. Who We Are. International Food Products is a manufacturer and distributor

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Corn Sweetener Prices 2014: Sweet or Sour?

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Corn sweetener prices 2014 sweet or sour

Corn Sweetener Prices 2014:

Sweet or Sour?

October 17, 2013


How to participate today

How to Participate Today

2.

1.

  • Open and close your Panel

  • View, Select, and Test your audio

  • Raise your hand

  • Submit text questions

3.

4.


Corn sweetener prices 2014 sweet or sour

Who We Are

International Food Products is a manufacturer and distributor

of quality ingredients and custom formulations for the

food, beverage, and dairy industries.

We are trusted ingredient advisors to our customers, providing commodity market expertise, product development,

and technical support.


Today s presenters

Today’s Presenters

Stephen P. Nicholson

Chief Economist,

International Food Products

Dr. Chad E. Hart

Associate Professor of EconomicsCrop Markets Specialist,

Iowa State University


Corn sweetener prices 2014 sweet or sour

2013/14 Crop Market Outlook

Oct. 13, 2013

Chad Hart

Associate Professor/Crop Markets Specialist

[email protected]

515-294-9911


Corn sweetener prices 2014 sweet or sour

U.S. Corn Supply and Use

Source: USDA-WAOB


Objective yield data

Objective Yield Data

Source: USDA-NASS


Projected corn yields

Projected Corn Yields

Top: 2013 Projected Yield

Bottom: Change from last month

Units: Bushels/acre

Source: USDA-NASS


Early reports on corn yields

Early Reports on Corn Yields

Source: AgWeb.com


Corn sweetener prices 2014 sweet or sour

World Corn Production

Source: USDA-WAOB


Corn export shifts

Corn Export Shifts

Source: USDA-FAS


Corn export sales

Corn Export Sales

Source: USDA-FAS


Corn grind for ethanol

Corn Grind for Ethanol


Corn sweetener prices 2014 sweet or sour

Source: DOE-EIA, Annual Energy Outlook


Current corn futures

Current Corn Futures

4.54

4.40

4.04

Source: CME Group, 10/11/2013


New crop prices

New Crop Prices


Corn sweetener prices 2014 sweet or sour

Crop Acreage

Source: USDA-NASS


Corn sweetener prices 2014 sweet or sour

Crop Shifts

Source: USDA-NASS


Thoughts for 2014 and beyond

Thoughts for 2014 and Beyond

  • Supply/demand concerns

    • A lot of production uncertainty for harvest time

    • Corn demand rebounding?

    • Acreage allocation for 2014: Where do the extra corn acres go?

    • Markets favoring soybeans in the short term and corn longer term


Corn sweetener prices 2014 sweet or sour

Thank you for your time!Any questions?My web site:http://www.econ.iastate.edu/~chart/Iowa Farm Outlook:http://www.econ.iastate.edu/ifo/Ag Decision Maker:http://www.extension.iastate.edu/agdm/


2014 corn sweeteners

2014 Corn Sweeteners

Prepared by

Stephen P. Nicholson, Economist

International Food Products


Daily december corn futures bu

Daily December Corn Futures ($/bu.)


Weekly corn futures bu

Weekly Corn Futures ($/bu.)


Comparison july 13 futures zcn13 vs july 14 futures zch14

Comparison July ‘13 Futures (ZCN13) vs. July ‘14 Futures (ZCH14)


Corn sweetener highlights

Corn Sweetener Highlights

  • 2014 corn sweetener negotiations have not begun.

    • Some early price discussions have been futile.

    • Not expecting negotiations to begin until after Nov. USDA reports.

  • 2013 business has been soft.

    • Some major corn wet millers have seen substantial declines in volume

  • While sugar prices are off their lows, cheap sugar is going to keep pressure on corn sweetener prices.

  • Future in Mexico?

    • Proposal to tax sugary beverages—aimed at soft drinks.

    • Future of U.S. HFCS exports to Mexico?

  • Corn futures prices are down significantly from year ago levels--$2.20-$2.50 per bu.

    • In 2014 basis values will be down from 2013, but will be supported by strong demand—ethanol industry and exports.

    • Net corns will also be down, as co-product prices are also declining.

  • Surprisingly, capacity utilization rates still remain historically high.


Projections for 2013 corn sweeteners prices

Projections for 2013 Corn Sweeteners Prices

  • There have been no “official” pricing announcements

    • Market talk is that there will be no price announcements until Nov.

  • 2014 Pricing Indications (versus 2013 contract prices)

    • Liquid corn sweeteners: down $3.00-$6.00 per CWT

    • Dextrose: down $3.00-$6.00 per CWT

    • Corn Syrup Solids: down $2.00-$4.00 per CWT

    • Maltodextrins: down $2.00-$4.00 per CWT

    • Crystalline Fructose: $4.00-$6.00 per CWT

    • PFP Corn Starch: $4.00-$6.00 per CWT

  • Individual pricing will depend largely on where your price was in 2013.


Questions

Questions

Everyone will receive an email with a link to view a recorded version of today’s session within 24 hours.


Next webinar

Next Webinar

Sugar Dive: Now Over?

Thursday November 21, 2013

Sign up at: ifpc.com/webinar


Daily market report

Daily Market Report


Contact information

Contact Information

Jamie Moritz

VP Sales & Marketing

800.227.8427

[email protected]

http://www.linkedin.com/company/international-food-products

@IntlFood


Thank you

Thank You!


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