Issue #10 October 31, 2016 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Message from Chip Smith, President:

Hello NSIMA Members; Happy Halloween NSIMA Members! It is now time to celebrate candy and reckless sugar consumption! One article in the newsletter this month declares that the "War on Sugar is Fosters Change for Global Candy Industry". There it is folks, that may well be the future. But the present is still sweetened with the good stuff. Go ahead and enjoy it. As we move into the holiday season, I wish you all safe travels and good cheer. Best Regards,

Chip Smith, President

Also in this issue: (Click on the Headline, or scroll down to the document)

09/26 - DFI Corp and Mitr Phol Group to produce erythritol, xylitol 09/28 - India sugar output to drop below consumption levels 10/06 - U.S.-Mexico trade talks leave one top sugar company with sour taste 10/06 - Cargill gains Non-GMO Project verification for erythritol, cane sugar, high-oleic sunflower oil

10/10 - Fairtrade expands further into central Europe 10/10 - Drought of the century threatens South Africa's agricultural industry 10/11 - UPDATE 2-Tax sugary drinks to fight obesity, U.N. health agency urges governments 10/11 - 'War on sugar’ fosters change for global candy industry 10/12 - Soybeans with super nitrogen-fixing capabilities produce high yield with less fertilizer 10/13 - 'Sweetener of the Future': Adam's Fresh Chocolate spearheads yacón use in chocolate 10/17 - Sweetener industry body (ISA) returns bias accusation 10/17 - With record harvests, world's food import bill expected to fall 11% 10/17 - October issue of the SUGAR AND SWEETENERS OUTLOOK 10/17 - PepsiCo sets global target for sugar reduction 10/18 - Ingredion reduces sugar by 30% in baked goods with prebiotic fiber 10/18 - Funds long on sugar curb trading houses' hedging appetite -Sucden 10/21 - Britain's cane sugar refiner sees only upside to hard Brexit 10/24 - Egypt's Edita, maker of Twinkies, shuts factory after sugar seized 10/25 - U.S.D.A. trims forecast for a still record world wheat supply 10/27 - Blommer Chocolate to buy only certified cocoa by 2020 10/27 - Brazil crystal sugar touches new all-time high

http://www.foodnavigator-usa.com/content/view/print/1311318

Sep 26, 2016; By Elaine Watson+, FOODnavigator-usa.com

DFI Corp and Mitr Phol Group to produce erythritol, xylitol, via game-changing ‘green electrochemistry’ process

Chaska, MN-based Dynamic Food Ingredients (DFI) Corporation has struck a deal with the world's fourth largest sugar producer, Thailand-based Mitr Phol Group, to commercialize technology it claims could slash production costs for erythritol and xylitol, opening up new opportunities for the food industry.

The partners plan to build production facilities in the US (using domestically sourced raw materials) and in Thailand (using locally-grown sugarcane and cassava), and engage in further R&D collaborations at Thailand Food Innopolis, an innovation center north of Bangkok. Tooth friendly, zero calorie (0.2cals/g), good for diabetics (it doesn’t raise blood sugar), and well-tolerated in the gut (unlike some other polyols); erythritol is about 60-70% as sweet as sugar. It also blends well with high intensity sweeteners such as stevia and monk fruit and is used in everything from reduced sugar ice cream, to confectionery, baked goods, beverages such as Zevia, and table-top sweeteners such as Truvia and SPLENDA Naturals. A white crystalline, odorless product which rapidly dissolves in water to create a clear, low viscosity, colorless solution, erythritol contributes no calories because it passes through the human body almost unchanged. Green electrochemistry However, cost has proved a barrier to the wider use of the ingredient, which is expensive to produce, says DFI. Typically, firms producing erythritol in commercial quantities do so via fermentation (where a sugar-rich substrate is fermented by a specialized yeast strain to yield erythritol), although it can also be produced via chemical synthesis. However, these are slow processes and the yields are not great, claims DFI, which has patented a ‘green electrochemistry’ process developed at Purdue University - and licensed to DFI - that it claims can deliver higher yields from the starter material (anything that contains glucose, for example, sugar or corn) and slash production times from days to hours. Production times slashed from days to hours Speaking to us back in 2013, DFI chief technology officer Jonathan Stapley explained: “Producing erythritol via fermentation can take several days. Our method takes less than an hour and produces little or no waste. We also achieve a higher yield and we can maximize efficiency by selling the co-products of the production process [such as formic acid].” DFI’s technique involves passing raw materials through an electrolytic cell, a technique well known for treating water or making chlorine but not something that has been used for industrial-scale applications in food before. As for xylitol - a sweetener found naturally in fruits and vegetables - Stapely said this has historically been produced on a commercial scale through the hydrolysis of a variety of raw materials from birchwood to corn. However, this technique typically involved the use of “acids, high pressure and temperature, chemical catalysts, and several separation and purification steps," he claimed. More recently, manufacturers have have used microbes that convert xylose and arabinose into xylitol via a fermentation process.

But both techniques are less efficient than using electrochemistry, claimed Stapley. “We can transform starch or sugar into xylitol on a one to one molar basis. The only by-products of our process are hydrogen, oxygen and bicarbonate. The process also takes hours instead of days.” DFI co-founder: This joint venture will provide access to the world's largest market Paul Magnotto, who founded DFI with Stapley in 2005, said DFI had been producing erythritol from a pilot plant in Lancaster, NY, for some time, and was now beginning engineering work on a commercial scale production facility at an undiclosed US location. Previous reports indicated that corn would be the primary raw material for the US facility, but the company has not confirmed this. “Importantly, this joint venture partnership will provide access to the world's largest market while leveraging a well-established customer base and technical prowess for factories in Asia.” Richard Bellas, DFI’s Chief Commercial Officer, and a 22 veteran of PepsiCo, told FoodNavigator-USA: “DFI’s patented technologies break new ground that will allow economic efficiencies to deliver products that already have enormous consumer acceptance." He added: "[DFI's process uses] no chemicals and the process produces product without any genetic material [some manufacturers of fermentation-derived erythritol use genetically engineered yeast strains, although Cargill says it uses a yeast organism that is 'found in nature ']. There are environmental and energy consumption benefits as well that leads to efficiencies. "We believe as carbonated soft drinks continue to shrink, companies will look for sweeteners that do not have to be blended with cane sugar for taste acceptability. In addition, the science package in terms of carbohydrate control and dental health is very strong, especially for kids, who tend to drink and eat lots of sweetened products. It’s a combination of offering validated health benefits such as for folks with diabetes or obesity and avoiding all the baggage associated with other artificial sweeteners – the proverbial win-win." 'The proverbial win win...' Krisda Monthienvichienchai, CEO and President of Mitr Phol Group, said: “We are looking forward to furthering fruition from the know-how gained from this joint development by building natural sweetener production plants in Thailand Food Innopolis in the near future. The research will focus on producing natural and bio-based sweetener products like erythritol and xylitol using food crops grown in Thailand, and further make these products more viable as sweeteners of choice for both the local food industry and health-conscious consumers.” Mitr Phol Group claims to be the world’s fourth largest and Thailand’s largest sugar producer, Asia’s largest bio-mass power producer, and Asia’s largest bio-ethanol producer.

http://www.reuters.com/article/india-sugar-output-idINKCN11Y1AH

Sep 28, 2016; By Mayank Bhardwaj and Rajendra Jadhav, REUTERS

India sugar output to drop below consumption levels India's sugar production in the 2016/17 marketing year is likely to drop below consumption levels for the first time in seven years, although ample carry-forward stocks will help the country meet local demand, an industry body said on Wednesday. The drop in output will make it nearly impossible for the world's top sugar consumer to export the sweetener in the season starting on Oct. 1, and may force it to import supplies to keep local prices from soaring. India could produce 23.37 million tonnes sugar in 2016/17, down 7 percent from a year ago as back-to-back droughts ravaged cane crops in the top producing western state of Maharashtra,

Tarun Sawhney, head of the Indian Sugar Mills Association (ISMA), told the Kingsman Asia Sugar Conference in New Delhi. Maharashtra's sugar production in the approaching season is expected to drop by a quarter from a year ago to 6.27 million tonnes, according to ISMA's estimates. The South Asian country is also likely to start the 2016/17 season with an opening stock of 7.5 million tonnes, down 17.6 percent from a year ago, although still enough - with this year's output - to satisfy local consumption, Sawhney said. "There will be enough sugar available in the 2016/17 season to meet the domestic demand of about 25.6 million tonnes," he said.

Anticipating lower production, the government has already restricted overseas sale of the sweetener by putting a 20 percent tax on exports. "In the world market, prices are attractive but exports are not happening due to export duty," said Rahil Shaikh, managing director of ED&F Man India.

India is likely to start the 2017/18 season with opening stocks of 5.2 million tonnes, down 31 percent from the 2016/17 year, estimates ISMA. "Depleting stock levels could force India to import sugar ahead of the 2017/18 season," said a Mumbai-based dealer with a global trading firm.

India has received normal monsoon rainfall this year and it is allowing farmers to expand the area under sugar cane for the 2017/18 crushing season, Sawhney of ISMA said. "We could produce a sugar surplus again in 2017/18," he said.

http://www.reuters.com/article/us-usa-sugar-mexico-idUSKCN12609D

Oct 6, 2016; By Chris Prentice, REUTERS

U.S.-Mexico trade talks leave one top sugar company with sour taste

As the U.S. government reworks a supply deal with Mexico, a top player in one of the world's largest sugar markets is crying foul and claims competitors are using the trade talks to deny it access to cheap Mexican sugar imports. Mexico is the top supplier to the U.S. sugar industry and negotiators from both countries are in talks to change a 2014 trade pact that prescribes the balance of raw and refined sugar that heads north to ensure U.S. refiners have what they need.

But CSC Sugar LLC, which produces liquid sugar to sweeten ice cream and make frosted coatings, said the proposals would exclude it and others from the export quota allotted to Mexico. That would effectively force it to source sugar elsewhere, limiting its supply options and potentially hurting competition in a market already dominated by a few players, said Paul Farmer, president of CSC. Farmer said the issue is being pressed by a coalition of U.S. sugar companies that are facing competition from his five plants around the country. The trade pact is being used as a "tool to reduce competition," he said. "We believe it's unfair, possibly illegal, and the Department of Commerce does not have the legal authority to determine who gets sugar supplies."

A spokesman for the Department of Commerce, which agreed on the sugar trade deal with Mexico and is negotiating the changes, did not respond to requests for comment on the negotiations. Among the terms that the U.S. sugar industry has proposed to Mexico are clauses that specify what type of refiner can receive Mexican imports under the deal, according to a copy of the desired terms seen by Reuters and sources familiar with the discussions. The clauses would prohibit Mexican exporters from selling tariff-free sugar to meet import quotas under the deal to companies such as CSC that make liquid sugar.

The changes would favor big cane refiners such as ASR Group, the maker of Domino Sugar and other brands, and Louis Dreyfus Co's Imperial Sugar Company. Representatives for ASR Group, Louis Dreyfus and the American Sugar Alliance, which represents the coalition of sugar companies involved in the trade dispute with Mexico, declined to comment.

"UN-AMERICAN"

Negotiators from both sides restarted talks on Friday to alter the 2014 trade deal, which established quotas and minimum prices for imports of raw and refined sugar from Mexico. That deal ended a trade spat brought by the United States against Mexico for hurting the U.S. sugar industry by selling cheap, subsidized sugar to its northern neighbor.

Now, the U.S. industry is pushing for a change to the agreement that would ensure more raw sugar supplies and specify to which types of companies Mexico's mills can sell. The changes aim to quell complaints from ASR and Imperial that supplies under the deal are insufficient and that the 2014 agreement has not eliminated the harm to the U.S. industry inflicted by cheap sugar from Mexico.

CSC has transformed itself from trader to processor by building a handful of plants that liquefy sugar across the country since 2009. The company is a major importer of sugar from Mexico and has capacity to produce about 400,000 tonnes of liquid sugar per year, Farmer said. Among the firms it supplies are Unilever Plc and Dr Pepper Snapple Group Inc.

The United States is the fourth-largest sugar market in the world, after India, China and the European Union, but it is one of the most lucrative thanks to a government support program that protects domestic producers with minimum price guarantees and a complicated network of marketing allotments and quota. The U.S. sugar industry is renowned for its sway in Washington and counts the politically connected Fanjul family - growers in Florida and part owners of ASR Group - among its members.

It is not unusual to rework these trade agreements, but clauses that specify end use may be "stretching the government's authority," said Daniel Pearson, a former member of the U.S. International Trade Commission and a senior fellow at the Cato Institute in Washington. Pearson is a proponent of free trade.

CSC's Farmer plans to press that matter. "I've invested virtually everything I had in that business," he said. "This is un-American."

http://www.foodnavigator-usa.com/content/view/print/1317087

Oct 06, 2016; By Elaine Watson+, FOODnavigator-usa.com

Cargill gains Non-GMO Project verification for erythritol, cane sugar, high-oleic sunflower oil

Cargill has joined a flurry of suppliers making non-GMO announcements at the Supply Side West trade show this year, gaining Non-GMO Project verification for erythritol, cane sugar, and high oleic sunflower oil.

While there are no genetically engineered sugar cane or sunflower varieties commercially available right now in the US, he Non-GMO Project stamp reassured customers that the ingredients had gone through robust traceability, segregation and testing protocols to avoid cross contamination with any GE crops [most sugar beet in the US is genetically engineered, while GM sunflower varieties are being trialed], said Mike Wagner, Cargill’s MD of starches and sweeteners, North America. As for erythritol, which Cargill typically makes by fermenting a yeast strain in feedstock from genetically engineered corn, Cargill is offering a Non-GMO Project Verified version that uses liquefied cane sugar instead of corn, he told FoodNavigator-USA. While the new cane sugar-based version is produced in the same facility in Blair, Nebraska, as the standard corn-based version, Cargill cleans and checks the facility before switching from one feedstock to another to ensure there is no cross contamination, he added. Cargill, which already offers non-GMO soy and corn products, said additional products would go through the formal Non-GMO Project verification process shortly. Increased interest from conventional brands in going Non-GMO Non GMO Project CEO Megan Westgate said Cargill’s move reflected a growing trend towards larger ingredients suppliers and food and beverage manufacturers to work with the Non-GMO Project, adding: “Originally this was driven by natural and organic food companies, but in the past 12 months we’ve seen a really significant shift in terms of increased interest from conventional brands, which is why the partnership with Cargill is so significant.” Right now, many large manufacturers are testing the water when it comes to sourcing non-GMO ingredients, which carry a price premium, but are perceived by many consumers to be healthier (although scientists dispute this). According to Westgate: “The number one driver for seeking non-GMO products is health although consumers are also concerned about food sovereignty and ownership of seeds and the environment.” Wagner said Cargill was not taking a position on the merits or otherwise of non-GMO, but was merely offering customers “choices and access.” Is moving away from GM crops better for the environment? Asked whether increasing acreage devoted to conventional, non-GMO crops would be better for the environment, and if so, why, given that GM crops have reduced insecticide use and soil erosion , a Cargill spokesperson said: “US farmers have widely adopted growing GM crops because of some of the environmental benefits they provide. For producers who choose to grow non-GM crops, there is access to many agronomic innovations and access to new chemistries and inputs they can use to minimize the environmental impacts and maximize their on farm profitability. Producers are good stewards of their land and will leverage the best tools available to them to minimize impacts on the environment, whether they chose to use GM traits or more conventional agronomic practices. Perhaps more than ever before, producers are highly motivated to address both changing consumer preferences and protecting the land that underpins their families’ livelihoods.”

http://www.fairtrade.net/new/latest-news/single-view/article/fairtrade-expands-further-into-central-europe.html October 10, 2016; by Zbigniew Szalbot, Fairtrade.net

Fairtrade expands further into central Europe Fairtrade Poland officially launched on Saturday at Poland’s largest organic event, Natura Food Fair. The organization joins 28 other Fairtrade organizations across the world that promote Fairtrade in their countries.

“We’re really excited about the possibilities offered by officially joining the Fairtrade system,” says Andrzej Żwawa, Chair of Fairtrade Poland’s management board. “The launch during the Natura Food Fair demonstrates our strong ties to the organic movement and to the pioneering organic businesses who were the first to introduce Fairtrade products to the Polish market”.

The largest of the new European Union member states, Poland has a growing economy and a rising interest in ethical consumerism. Fairtrade products are already on sale in many Polish stores. Coffee is the most popular Fairtrade product, accounting for more than 70 percent of all sales. PKN Orlen, a national chain of petrol stations, now sells Fairtrade coffee in more than 1,400 of their Stop Cafe outlets, making it the biggest driver of Poland’s Fairtrade sales to date. The Fairtrade Poland team has ambitions to expand the product range further, including introducing Fairtrade bananas next year.

“We are building our capacities, investing in people who can help build the market for Fairtrade products in Poland”, adds Żwawa. “At the same time we need to educate Polish consumers so that they know what Fairtrade is and the difference it makes to farmers and workers in the Global South – an important step in a country where awareness of ethical labels is still quite low.”

The journey to setting up Fairtrade Poland began in 2009 when several Polish NGOs and small businesses formed an informal coalition working for ethical trade. The coalition registered as a non-profit foundation in 2013 and has now become Fairtrade Poland.

Fairtrade Poland is also active in advocacy, awareness-raising and education work, via for example the Fair Trade Schools campaign.

http://www.world-grain.com/news/news%20home/LexisNexisArticle.aspx?articleid=2661362645&e=%25%25emailaddr%25%25

Oct. 10, 2016; WORLD-GRAIN.com

Drought of the century threatens South Africa's agricultural industry As SA's worst drought in more than a century drags on, crops besides grains are under threat. This could be "catastrophic" for an industry that exports $7.7bn a year...

"Rivers and dams are running dry," said John Purchase, CEO of the Agricultural Business Chamber also known as Agbiz. "The drought has now become a huge problem in the irrigation areas because there has been no surface runoff," SA s rainfall last year was the lowest since records began in 1904, causing widespread damage to crops and livestock herds. The country, which is Africa s biggest maize producer, has become a net importer of the grain for first time since 2008. This helped push the food-price inflation rate to 11.6% in August, the highest in about five years and almost double the increase in prices for the average basket of goods. Lack of rain and above-normal heat has persisted this year, and the nation s weather service sees this continuing into 2017, hampering a recovery in production. Prices of white maize, used to make a staple food known as pap, peaked at a record R5,376 a tonne in January and have declined 35% since then. A third year of drought "would be pretty catastrophic", Purchase said on Thursday. "Everybody pays for this drought. The farmers take the biggest risk, but the agribusinesses are showing huge losses. The retailers... the consumer is paying 11%, 12% food inflation.

http://af.reuters.com/article/commoditiesNews/idAFL8N1CH28D

Oct 11, 2016; By Stephanie Nebehay, REUTERS

UPDATE 2-Tax sugary drinks to fight obesity, U.N. health agency urges governments

GENEVA, Oct 11 (Reuters) - Governments should tax sugary drinks to fight the global epidemics of obesity and diabetes, the World Health Organization said on Tuesday, recommendations industry swiftly branded "discriminatory" and "unproven". A 20 percent price increase could reduce consumption of sweet drinks by the same proportion, the WHO said in "Fiscal Policies for Diet and Prevention of Noncommunicable Diseases", a report issued on World Obesity Day.

Drinking fewer calorific sweet drinks is the best way to curb excessive weight and prevent chronic diseases such as diabetes, although fat and salt in processed foods are also at fault, WHO officials said. "We are now in a place where we can say there is enough evidence to move on this and we encourage countries to implement effective tax on sugar-sweetened beverages to prevent obesity," Temo Waqanivalu, of WHO's department of Noncommunicable Diseases and Health Promotion, told a briefing. Obesity more than doubled worldwide between 1980 and 2014, with 11 percent of men and 15 percent of women classified as obese - more than 500 million people, the report said. "Smart policies can help to turn the tides on this deadly epidemic, especially those aimed at reducing consumption of sugary drinks, which is fuelling obesity rates," former New York mayor Michael Bloomberg, a WHO ambassador for noncommunicable diseases, said in a statement. The global soft drink market is worth nearly $870 billion in annual sales. 2016 could be the year of the sugar tax, as several large nations consider levies on sweetened food and drinks to battle obesity and fatten government coffers.

GLOBAL TREND

The U.S.-based soft drinks industry's lobbying arm - whose members include Coca-Cola Co, Pepsico Inc and Red Bull - strongly disagreed with what it called "discriminatory taxation". "It is an unproven idea that has not been shown to improve public health based on global experiences to date," the Washington-based International Council of Beverages Associations said in a statement. A comprehensive approach based on the whole diet was needed for a lasting solution to obesity, it said. The non-alcoholic beverage industry was making available more options with fewer calories and reformulating existing drinks to reduce calories significantly, the group said.

An estimated 42 million children under the age of five were overweight or obese in 2015, said Francesco Branca, director of WHO's nutrition and health department, an increase of about 11 million over 15 years. The United States has the most obesity per capita, but China has similar absolute numbers, Branca said, voicing fears that the epidemic could spread to sub-Saharan Africa. The WHO said there was increasing evidence that taxes and subsidies influence purchasing behaviour and could be used to curb consumption of sweet drinks.

"This is tax on sugary drinks which is really by definition all types of beverages containing free sugars and this includes soft drinks, fruit drinks, sachet mixes, cordials, energy and sports drinks, flavoured milks, breakfast drinks, even 100 percent fruit juices," Waqanivalu said.

In Mexico, a tax rise in 2014 led to a 10 percent price hike and a 6 percent drop in purchases by year-end, the report said.

http://www.bakeryandsnacks.com/content/view/print/1317099

Oct 11, 2016; By Douglas Yu+, BakeryandSnacks.com

'War on sugar’ fosters change for global candy industry

The “war on sugar” has dented demand of sweet snacks as 47% of global consumers look for foods with limited or no added sugar, according to a recent survey by Euromonitor.

“Consumers have greater awareness of ingredients used in food production and are more cautious on their consumption,” the market research firm’s food analyst, Jack Skelly, said during a recent presentation, titled “No Sugar Please: How Snacks Are Being Redefined,” in London. Growth of healthy snacks rose by 7% in the period of 2014 to 2015, compared to conventional snacks, which increased by 5%, according to the presentation. Conventional snacks, which include sweet biscuits, confectionery, crisps, and soft drinks, are worth around $505bn worldwide; meanwhile the healthy snacks sector, which comprises nuts, seeds and trail mixes, energy bars, savory snacks, and yogurt and milk products, is valued at $140bn. “The growth in healthy snacks was driven by Western Europe and North America, which combined, increased by $10.8bn from 2011 to 2016, an emerging trend that could transform the industry,” Skelly said. Health trend fosters business strategy shift The “demonization of sugar” inevitably created a change in the type of ingredients used in confectionery and snack products, Euromonitor’s ingredients analyst, John George, said. The sugar-reduction movement has caused manufacturers to use increasing amount of sugar replacers or natural sweeteners instead in their new products. “In 2015, global sweeteners use in conventional snacks amounted to 15.5m tons, while in comparison, new snacks included less than a fifth of this at 3m tons,” George said. .The health trend not only fosters a shift in ingredients for the packaged food industry, but also a new pack sizing strategies, added Karine Dussimon, senior packaging analyst at Euromonitor. “We’ve seen an increasing polarization of pack sizes in conventional snacks, as larger formats are marketed for a shared consumption, and smaller sizes, more commonly launched as calorie packs,” she said. “The aim of these new formats are to convey greater portion control and lower guilt of buying a treat while boosting impulse purchase.” Chocolate candy and gum sectors responds differently to sugar-free ConfectioneryNews analyzed sales data for multiple US outlets, including C-stores and mass market retailers from analysts IRI for the 52 weeks up ending on August 7, 2016. The dollar sales of the sugar-free chocolate candy category have increased by 3.04% compared to the previous year, reaching $116m in total. Among the top sugar free chocolate brands in terms of dollar sales, Lily’s Sweet leads the category with a 69.65% dollar sales increase versus last year. Meanwhile, the total chocolate candy category, was valued at around $14bn and only increased by 1.61% in dollar sales compared to the same period last year.

Sugarless Gum Companies Dollar Sales Dollar Sales % Change vs a year ago Wrigley $1,397,740,672 3.01% Mondelēz $853,781,504 5.92% Hershey $185,021,456 20.03% Perfetti Van Melle $171,808,928 19.67% Project 7 $7,016,243 154.59% Source: IRI (total US multi-outlets; latest 52 weeks ending Sept. 4, 2016) However, according to latest IRI data for the 52 weeks leading up to Sept. 4 this year, the gum category in the US responds differently to the sugar-free movement: sugarless gum, which values $2bn more than regular gum, only increased by 1.27% in terms of dollar sales compared to last year, while regular gum increased by 1.65%. With the sugarless gum category, Project 7 dwarfed all major gum players in terms of dollar sales growth, including Wrigley, Mondelez, Hershey and Perfetti Van Melle, with a 154.59% increase compared to the same period last year, according to IRI data. Gum industry cuts sugar despite slower growth In spite of the slower growth of sugarless gum compared to regular gum products, gum manufacturers still see the increasing consumer health awareness as a business opportunity. Earlier this year, the oldest gum company in the US, Bazooka Candy Company, launched its first sugar-free gum, packaged in 60-count to-go cup and 22-count slim tube formats. The new product is sweetened with sorbitol-based sweetener system. The company also recently partnered with Disney and Marvel to feature their characters on its sugar-free products’ packaging. “Bazooka Sugar Free is the only current sugar-free product in the Bazooka Candy Brands portfolio,” marketing director for Bazooka, Nicole Rivera said. Even though sugar-free products, as a whole, are still a small percentage of Bazooka’s total business, the company continues to see month-over-month growth “signaling heightened consumer interest,” Rivera added. “Consumers are increasingly aware of the importance of healthy weight in prevention of diabetes and other diseases, so minimizing sugar and calorie intake is high on consumers’ agenda,” head of health and wellness research at Euromonitor, Ewa Hudson, said. Emerging markets drive sugar consumption growth Euromonitor data shows that the average global consumer purchased 34 grams of sugar per capita per day in 2014 from packaged food and beverages, with the US topping the countries list. “Assuming the sugar content of food and beverage products stays the same and based on forecast volume sales, the world will be buying two grams more sugar per capita a day by 2020, with emerging markets driving this growth,” Euromonitor said.

http://www.foodnavigator-usa.com/content/view/print/1319851

Oct 12, 2016; By Elizabeth Crawford, FOODnavigator-usa.com

Soybeans with super nitrogen-fixing capabilities produce high yield with less fertilizer

A “breakthrough” discovery that increases how much nitrogen soybeans can pull from the atmosphere and how efficiently they use it could help feed the world’s rapidly growing population by significantly boosting the quality and quantity of the crop while also decreasing the need for fertilizer.

Washington State University biologist Mechthild Tegeder and biological sciences graduate student Amanda Carter recently discovered how to activate a third “transporter” in soybeans for nitrogen to speed the flow of the essential nutrient from the plants’ roots to the shoots and seed-producing organs. By boosting how quickly nitrogen is exported from the specialized bacteria in the soybean root nodules where it is “fixed” to the plants’ shoots and reproductive sink organs, Tegeder and Carter found soybean plants produced between 14% and 41% more pods, according to a study recently published in Current Biology . They also reported a significant shift in the number of pods that produced three seeds, versus just one, so that the overall seed yield per plant increased up to 36%. In addition to producing more seeds, the plants were able to fix, or convert, twice as much nitrogen from the atmosphere than their wild counterparts, according to the study. WSU explained in materials accompanying the study that this was possible because the expedited transport of nitrogen from the root nodules “initiated a feedback loop that caused the rhizobia to start fixing more atmospheric nitrogen.” Tegeder and Carter succeeded at boosting nitrogen conversion when others failed in part because previous research fixated on boosting the plants’ nitrogen-fixing capability by altering the bacteroid function or interactions between the bacteroid and the root nodule cells. Environmental benefits beyond production The ability to fix more nitrogen not only resulted in larger, faster-growing and generally better looking soybean plants, it also suggests that the plants could survive in harsher conditions and with less fertilizer, according to the study. However, the authors note this would need to be tested in fields first. Synthetic nitrogen fertilizer often is used to boost plant productivity, but the tradeoff is increased greenhouse gas emissions, water pollution and other negative impacts on the ecosystem, WSU explained. On the flip side, when nitrogen fertilizer is unavailable, farmers can experience low crop yields which restrict the food supply, the university added. In addition to not needing as much or any synthetic nitrogen fertilizer, the enhanced soybeans can help reduce the need for fertilizer for other crops because, like other legumes, soybeans leave residual nitrogen in the soil for crops that are planted later in the same fields. Tegeder and Carter’s discovery also could have a broader reach if, as the researchers believe, it can be applied to other varieties of legumes in different climates.

http://www.confectionerynews.com/content/view/print/1318245

Oct 13, 2016; By Douglas Yu+, ConfectioneryNews.com

'Sweetener of the Future': Adam's Fresh Chocolate spearheads yacón use in chocolate

Peruvian daisy yacón will be the natural sweetener of the future in the chocolate industry, according to British raw chocolate startup Adam’s Fresh Chocolate.

The company claims to be the first chocolate company in the UK to use yacón as a natural sweetener after it was approved as an EU novel food in 2014.

'Fudge-like texture to the chocolate' Adam’s Fresh Chocolate’s co-founder Mark Claydon told ConfectioneryNews that yacón is a species of perennial daisy grown in Peru, and its naturally sweet roots are the source of the sweetener. “We’ve used yacón for more than a decade. It was one of the many South American superfoods Adam came across whole eating a raw food diet,” Claydon said. “It gives a fudge-like texture to the chocolate.” Adam’s Fresh Chocolate believes that, even though there is still a great deal to learn about the plant as a confectionery ingredient, “yacón is the natural sweetener of the future.” Since all the products from Adam’s Fresh Chocolate are made with raw cacao, yacón is also used to temper the bitterness of the cacao, Claydon said. A study published by the US National Library of Medicine, part of the National Institutes of Health, found that syrup obtained from yacón roots is a good source of fructooligosaccharides, and its long-term consumption produced beneficial health effects on obese pre-menopausal women with insulin resistance.

Investment and expert advice Adam’s Fresh Chocolate recently won the Seed Fund 2016 , a philanthropic fund founded by branding and marketing consultancy, The Collaborators, to help fuel the growth of startups. It has earned a prize estimated to be worth over £100,000 ($122,000) and Adam’s Fresh Chocolate’s founders, Adam Farag and Mark Claydon, will be enrolled in a 12-month program with the organization, which includes access to expert business, branding and communications resources. Farag had made raw chocolate at home for more than 10 years before he decided to start a business. As an old school friend of Farag’s, Claydon said they both like the idea of working together, and hope to give consumers the ability to choose a 100% plant-based product.

Pioneering in using yacón as natural sweetener Adams Fresh Chocolate currently offers four flavors of raw chocolate items: goji and pistachio, hazelnut and blackcurrant, coconut and banana, and mint. All the products are mainly stocked in the Bristol area, and are available online at the company’s website. According to the chocolatier, its products are free from refined sugars, dairy, gluten and soy.

Increasing production with new premises Clayton said a big challenge for the startup had been scaling up production. “But [another challenge is] also getting our message out to the masses," he said. Adam’s Fresh Chocolate will up capacity by mid-November this year as it waits for its new plant to be fully operational. “Our new premises are currently just a shell. We want them completely kitted and pumping out chocolate as soon as our oompa lumpas will allow,” Claydon said. Adam’s Fresh Chocolate has been in business for less than a year and is hoping to achieve a 400% sales increase in Q4 this year compared to Q3. “This target runs side by side with our objective to educate consumers on making nutrition based choices, and to continue to spread our message,” Claydon said.

http://www.foodmanufacture.co.uk/content/view/print/1317058

Oct-2016; By Noli Dinkovski, FOODmanufacture.co.uk

Sweetener industry body returns bias accusation

An international sweeteners body has slammed a study that claimed industry-supported research into low-calorie sweetened beverages and weight outcomes was more likely to show favourable results

The International Sweeteners Association (ISA) said the study, by Mandrioli et al and published in Plos One, offered “misleading and biased” conclusions. Four sponsored reviews The study looked at four sponsored reviews, and found that three gave favourable results. Meanwhile, just one out of 23 non-sponsored reviews offered favourable conclusions. It concluded that review sponsorship and authors’ financial conflicts of interest “introduced bias” that “could not be explained by other sources” ‘Questionable conclusions’ The ISA criticised the study’s “questionable conclusions”, as it was based on only four industry-supported reviews. It claimed the reviews were not comparable in terms of their methodology and hierarchy of evidence, as some were based on qualitative evidence only.

http://www.world-grain.com/news/news%20home/LexisNexisArticle.aspx?articleid=2664648804&e=%25%25emailaddr%25%25 10/17/2016; United Nations FAO has issued the following press release:

With record harvests, world's food import bill expected to fall 11% With prices for most of the internationally-traded agricultural commodities, especially for the staple grains remaining relatively ‘low and stable,’ it is expected the global food import prices will fall to a six-year low, the United Nations agricultural agency said today. “Record global production forecasts for this year's wheat and rice harvests, along with rebounding maize output, are helping keep inventories ample and prices low,” said the UN Food and Agricultural Organization (FAO) in a news release today. The agency noted that the value of total food imports is expected to fall 11 per cent (in U.S. dollar terms) in 2016 to 1.168 trillion, as lower bills for livestock products and cereal-based foodstuffs more than offset higher bills for fish, fruit and vegetables, oils and sugar. “However,” the UN agency added: “the decline is expected to be slower for economically more vulnerable nations, many of which have depreciating local currencies.” Referring to its updated Food Outlook, which focuses on developments affecting global food and feed markets, FAO also highlighted that worldwide cereal production in 2016 should rise 2,569 million tonnes, up 1.5 per cent from the previous year and enough to further boost existing inventories. The agency also raised its forecast for global wheat production to 742.4 million tonnes on the back of increased yields in India, the United States and Russia. Similarly, the global output of rice is also expected to increase 1.3 per cent, the first such rise in three years, to an all-time high of 497.8 million tonnes. This increase has been attributed to abundant monsoon rains in Asia and substantial increases in Africa. Outputs have also increased for coarse grain (1.8 per cent) and cassava (2.6 per cent). Increased yields are also anticipated for soybeans and other oil crops and these could reach an all-time production high this year, FAO noted. Additionally, while global fish production is also anticipated to expand 1.8 per cent (to 174 million tonnes), wild-caught fish yields are expected to decline by 0.9 per cent, due in part to El Niño impact on Pacific sardines, anchovetas and squid. FAO also reported that unchanged world meat output in 2016, paired with rising international demand for pig-meat and poultry, especially from east Asian markets, continues to lend support to meat prices. Also announcing its updated Food Price Index, the agency noted that the Index averaged 170.9 points in September, up 2.9 per cent from August and 10 percent from a year earlier. The increase was driven by a 13.8 per cent monthly jump in the agency’s Dairy Price Index, partly as a result of a sharp jump in butter prices benefiting exporters in the European Union, where dairy output is declining. The Sugar Price Index and Vegetable Oil Price Index also rose 6.7 per cent and 2.9 per cent, respectively, in September, while the Meat Price Index remained unchanged, as compared to August. The agency’s Cereal Price Index, meanwhile, slipped 1.9 percent from the previous month and is 8.9 percent below its year-earlier level

Sugar and Sweeteners Outlook: October 2016

Sugar and Sweeteners Outlook No. (SSSM-338) 9 pp, October 2016

by Michael J. McConnell

The Sugar and Sweeteners Outlook for October reviews the sugar and sweetener market conditions for the United States and Mexico based on changes to the October WASDE.

Keywords: Sugar, sugarcane, sugarbeets, trade, sugar imports, high corn fructose syrup, Mexico, NAFTA

In this publication...

Sugar and Sweeteners Outlook: October 2016

http://ca.reuters.com/article/businessNews/idCAKBN12H0E1

Oct 17, 2016; By Martinne Geller, REUTERS

PepsiCo sets global target for sugar reduction LONDON (Reuters) - PepsiCo Inc has set a target for reducing the amount of sugar in its soft drinks around the world as part of a suite of goals aimed at tackling problems ranging from obesity to climate change. The New York-based company will announce on Monday that by 2025 at least two thirds of its drinks will have 100 calories or fewer from added sugar per 12 oz serving, up from about 40 percent now. The move, which it plans to achieve by introducing more zero and low-calorie drinks and reformulating existing drinks, comes as PepsiCo and rival Coca-Cola KO.N come under increasing pressure from health experts and governments who blame them for fuelling epidemics of obesity and diabetes.

PepsiCo says the new global target is more ambitious than its previous goal of reducing sugar by 25 percent in certain drinks in certain markets by 2020. "The science has evolved," Mehmood Khan, PepsiCo's chief scientific officer of research and development, told Reuters. He gave an example of new flavor ingredients that require less sweetening, saying: "It's not just about sweeteners, it's about understanding the flavor ingredients and having proprietary knowledge and access to them."

The World Health Organization this month recommended taxes on sugary drinks, as France and Mexico have done, to curb consumption and improve health. The soft drinks industry opposes such taxes.

Despite its name, PepsiCo generates only 12 percent of its $63 billion in annual revenue from its famous cola brand. It makes 25 percent from carbonated soft drinks such as Mountain Dew, with the rest coming from waters and juices including the Tropicana brand, plus snacks and dips such as hummus and guacamole. Its 2025 goals also include targets for lowering sodium and saturated fat.

FINANCIAL PROGRESS

"These are good steps. But when we have an obesity crisis, I think there is more that we can be doing," said Mindy Lubber, president of non-profit organization Ceres, which pushes companies and investors to take action on sustainability. "If a food and beverage company is not looking at nutrition, they are not looking at the direction the world is going in."

Coke has said that by 2020 it would offer low-calorie or no-calorie options in every market as part of its sustainability goals.

PepsiCo is building on goals set out 10 years ago, which targeted nutritional, environmental and social improvements. Khan said there has also been financial progress. He said the company has saved $600 million over the past five years from reduced water, packaging and energy use, as well as a reduction in waste. He added that, over the past decade, average returns on investments in this area have been better than the cost of capital. Khan expects similar returns in future, which might be good news for investors, who generally don't base investment decisions on sustainability.

"It might not be the driving factor, but it might a filter," said Morningstar analyst Philip Gorham.

Other targets include a 15 percent improvement in the water efficiency of PepsiCo's direct agricultural supply chain in water-stressed areas by 2025 and a 20 percent drop in greenhouse gas emissions across its supply chain by 2030

http://www.foodnavigator-usa.com/content/view/print/1322342

Oct 18, 2016; By Douglas Yu+, FOODnavigator-usa.com

Ingredion reduces sugar by 30% in baked goods with prebiotic fiber

Illinois-based ingredients supplier, Ingredion, has launched a soluble prebiotic fiber that provides fiber and prebiotic benefits and supports sugar and calories reduction efforts for bakeries, while allowing formulators to keep their clean labels.

The prebiotic fiber, called Nutraflora L95-S, is an expansion to Ingredion’s Nutraflora prebiotic fiber scFOS portfolio, according to the company. It contains 95% scFOS (short chain fructooligosaccharides), one of the fructans that can occur in foods such as artichokes, leeks and garlic. Nutraflora L95-S is aligned with the clean label trend, and can meet key consumer requirements, Ingredion said in a statement. It is also non-GMO, and is listed in the National Organic Program list of ingredients allowed in organic foods under 5% content. “Scientific evidence indicates digestive benefits of consuming scFOS in healthy and in populations with some degree of intestinal problems. scFOS is fermentable in the intestine resulting in the production of short chain fatty acids and bacterial shifts, thereby fostering favorable environment,” Vishnu Gourineni, senior associate at Ingredion said. How can it be used by manufacturers? Currently available in both powder and liquid forms, Nutraflora L95-S can be used for binding syrups in nutrition bars, Maria Tolchinsky, senior business development manager of global nutrition at Ingredion, said. “Our prebiotic fiber adds humectancy to bars and baked goods, and has slightly sweet flavor, which makes it ideal for reduced sugar applications,” she said. “Due to the unique structure of scFOS, Nutraflora prebiotic fiber does not participate in Maillard browning and as such behaves very similarly to sugar in bakery applications.” Health benefits and cost effectiveness When scFOS partially replaces sugar (30% sugar replacement) in dessert applications, it has shown to demonstrate lower postprandial glycemic response in healthy people, Tolchinsky said, and it enhances mineral absorption, such as calcium absorption, and supports bone health. Nutraflora L95-S is effective at 1.1 grams per day, which is very low compared to other fructans, such as Inulin or Oligofructose, Tolchinsky added. “Given the low effective dose, the prebiotic fiber allows for cost effective fiber fortification and digestive health claims,” senior manager of nutrition marketing at Ingredion, Santiago Vega, said. Vega believes that digestive and immune health continues to be of high interest for consumers and this trend is set to stay as more knowledge is gained about the benefits of a healthy microbiome. Ingredion is currently waiting for Thai government approval to acquire a local rice flour business, Sun Flour , to expand its portfolio and geographic scope.

http://www.reuters.com/article/us-brazil-sugar-sucden-idUSKCN12I290

Oct 18, 2016; By Marcelo Teixeira, REUTERS

Funds long on sugar curb trading houses' hedging appetite -Sucden Funds, who are bullish on sugar and have amassed massive long positions in the commodity, are squeezing trading houses operating in Brazil which have had to cover large margin calls on their hedging operations, French trading group Sucden said on Tuesday.

Trading houses, who extend capital to local mills in exchange for their sugar, traditionally hedge their currency and sugar price risks on the futures market. They are being forced to limit taking up hedges that prices will fall by hedge funds which are pushing up the price of sugar.

This could limit the availability of credit extended to mills, which are coming out of their worst crisis in recent decades. In the short term that could take the wind out of sugar prices as mills are unable to sell forward future production. In the medium term, Brazil's ability to reverse the global sugar deficit may be impaired.

Raw sugar futures went from 10 cents in August, 2015 to nearly 23 cents currently, a jump of 121 percent to the highest levels in four years.

Luiz Silvestre, chief trader for Sucden in Brazil, said all houses have been covering heavy margin calls for a while.

"The commitments for the tradings are very high right now. There was one Friday when the market rose a lot and total margin payments reached $300 million for the day," Silvestre said on the sidelines of the Datagro sugar conference in Sao Paulo.

"So, all this profit that funds have made recently, while it is not realized, generates margin calls. Consequently, ... you end up being more selective on further credit lines to mills, that will limit further price fixing."

As the sugar market rises in the face of the supply deficit, analysts believe producers should take every opportunity to sell forward their production, locking in profits now before prices turn.

"Funds are seeing something that is giving them persistence in their position," Societe Generale director in New York, Michael McDougall, said. "The question is if they have reached the limit, if they have more cash to continue."

There is not a consensus on a price level post-funds liquidation, but Silvestre believes it could settle around 17 or 18 cents per pound.

If that happens, he says, sugar traders would get relief on their margin calls and open up more room for new hedging operations by mills.

http://www.reuters.com/article/us-britain-eu-tatelylesugars-idUSKCN12L1NK

Oct 21, 2016; By Helen Reid, REUTERS

Britain's cane sugar refiner sees only upside to hard Brexit

Once a week, a bulk freighter sails up the River Thames to a refinery in the docks of east London to offload tonnes of brown raw cane sugar - just over half the traffic prior to tighter EU rules introduced in 2009. Now, the near 140-year-old Tate & Lyle Sugars refinery says it can see light at the end of the tunnel as Brexit offers the hope of a repeal of European sugar legislation it says is harming its business.

Best known in Britain for producing Lyle's Golden Syrup, a household brand sold in distinctive green and gold tins since 1882, TLS argues against the idea that Brexit will be bad for British business. "For us the real uncertainty was the status quo," senior vice-president Gerald Mason said. Mason says being free of European rules will provide the opportunity to bring production back to previous levels and make the company competitive with beet sugar producers at home and across continental Europe. "Leaving the EU is the biggest opportunity of our lifetime."

TLS, which was split from parent Tate & Lyle Plc when U.S.-based ASR Group bought TLS in 2010, has found itself increasingly on the wrong side of EU rules for the sugar sector. Tariffs on raw cane sugar entering into the 28-nation bloc are designed to protect Europe's sugar beet growers and to promote trade with cane growers among a group of former European colonies in Africa, the Pacific and the Caribbean. Those tariffs have long hurt cane refiners such as TLS, who want to buy the cheapest raw material on the market from producers such as Brazil tariff-free. The money from tariffs finds its way to rival beet sugar refiners in the form of subsidies for EU beet farmers, he said.

"We can be spending as much as 3 million euros in import tariff per ship," Mason said, as a bulldozer dug into mounds of raw cane sugar from Fiji, Guyana and Australia in the cavernous warehouse. The refinery is operating at half capacity, producing 550,000 tonnes of sugar, down from 1.1 million tonnes in 2009. Where up to 80 ships a year offloaded at the jetty, now 40-50 ships arrive. In 2015, the firm made a 25 million-euro loss and Mason had to cut 50 jobs.

SEEKING A CLEAN SLATE

While EU beet sugar producers see the import levy as a legitimate way to protect a key agriculture market, in Britain there was consensus over the damage being done by the policy. "We all agree that it was disadvantageous to Tate & Lyle [Sugars]," said Neil Parish, a lawmaker who chairs parliament's Environment, Food and Rural Affairs Committee. But the vote is not a panacea to TLS. EU regulations are likely to remain in place until the formal exit in March 2019.

Mason said he was seeking talks about future regulation with the domestic beet sector, which is unlikely to share his enthusiasm for a regulatory "clean slate" and exiting the EU customs union - commonly understood as a "hard" Brexit. Led by Associated British Foods unit British Sugar, Britain's beet sector produces 1 million tonnes of refined sugar a year - about half of British consumption. The company was also beginning to woo government, providing its familiar golden syrup at a breakfast Brexit panel on the fringes of the ruling Conservative party conference. Government should repeal the legislation "on day one" after Britain's formal exit, Mason said. In the run-up to the referendum Mason felt European institutions were complacent, assuming Britain would remain. Had Brussels agreed to scrap the regulations it could have shown that Europe was willing to change, and perhaps the result would have been different, he said. "That's history now."

http://www.reuters.com/article/us-edita-sugar-idUSKCN12O1PR

Oct 24, 2016; By Eric Knecht, REUTERS

Egypt's Edita, maker of Twinkies, shuts factory after sugar seized

Edita Food Industries, Egypt's maker of Twinkies, said on Monday its sweet factory in Beni Suef had been shut for three days after authorities seized its sugar, raising questions among investors over the way Egypt is handling a supply crunch. At supermarkets nationwide sugar has all but vanished, prompting media talk of a crisis and pushing the state to rapidly increase imports despite an acute dollar shortage and soaring global prices of the sweetener. The government has accused factories and traders of hoarding stocks to push up prices, an allegation they deny. One sugar supplier said raids on factories began last week and mark the latest escalation in confiscations which have hit thousands of wholesalers and packers in recent weeks.

A supply ministry official told Reuters late on Sunday that 2,000 tonnes of sugar were confiscated after Edita was unable to show original invoices for sugar stocks held at Beni Suef. Edita, one of Egypt's largest food producers, told Reuters it had produced all required documents and denied hoarding. "We provided all the original documents and invoices to the ministry for the sugar. The factory is now stopped because of the seizure of the sugar - 2,000 tonnes, which is three weeks of sugar for the company. This is a normal amount," said Menna Shams El Din, Investor Relations and Business Development Manager at Edita. "There is no doubt this sugar was obtained on the private sector and not from subsidized sugar."

Edita's shares plummeted 6.7 percent in early trade. It closed up 4.7 percent but at its lowest ever closing price of 7.95 Egyptian pounds. The company, which holds local ownership of brands including Twinkies, HoHos and Tiger Trail, said in a statement the closure was temporary and the plant would reopen once its sugar had been released. Edita has four factories in Egypt including its Beni Suef plant, which makes hard and soft candy. It said sweet production accounted for only 4 percent of its total revenues.

Analysts said the closure would not have a major impact on Edita's profits but would send a negative signal to foreign investors, which Egypt needs to redress the dollar shortage at the heart of its sugar supply problems. Egypt consumes around 3 million tonnes of sugar annually but produces just over 2 million tonnes, with the gap filled by imports. But traders said high global sugar prices and a rising black market rate for dollars has made it too expensive and risky for many importers to obtain sugar in recent months. "Getting sugar has really turned into a challenge," said an executive at one food producer, declining to be named.

http://www.nxtbook.com/sosland/mbn/2016_10_25/index.php?stdata=email:penner@bex.net#/46 Oct. 25, 2016; Ingredient Market Trends - Weekly Spotlight

U.S.D.A. trims forecast for a still record world wheat supply

The U.S. Department of Agriculture on Oct. 12 forecast world wheat supplies in 2016-17 (global beginning stocks plus production) at a record 984.1 million tonnes, down 1.64 million tonnes from the September projection but up 33 million tonnes, or 3%, from the 2015-16 supply at 951.1 million tonnes, the current record. The downward adjustment to the 2016-17 supply forecast was the first since the U.S.D.A. issued its initial forecast in May, which was 969.9 million tonnes.

The U.S.D.A. estimated the 2016-17 world wheat carry-in at 239.66 million tonnes, down 1.23 million tonnes from the September estimate.

World wheat production in 2016-17 was forecast at a record 744.44 million tonnes, down 0.41 million tonnes from the September projection but up 9.42 million tonnes from 735.02 million tonnes in 2015-16, the current record. The U.S.D.A. said in commentary accompanying the October World Agricultural Supply and Demand Estimates report, “A 2-million-tonne production decline for the European Union is partially offset by a 1-million-tonne increase for Canada and a 0.8-million-tonne increase for Australia. The Australia increase is attributed to continued excellent growing conditions, and yields are projected to be record high.”

World wheat consumption in 2016-17 was projected at a record 735.73 million tonnes, down 0.95 million tonnes from the September projection but up 24.29 million tonnes, or 3%, from 711.44 million tonnes in 2015-16. The lower wheat use forecast was tied to lower forecast feed use of wheat. The U.S.D.A. forecast world feed use of wheat at 144.94 million tonnes, down 3.1 million tonnes from September but up 7.8 million tonnes from 137.14 million tonnes in 2015-16. The lower feed use was attributed to lower projections for the United States and the European Union.

The U.S.D.A. forecast world wheat exports in 2016-17 at 174.68 million tonnes, up 1.88 million tonnes from the September projection and up 2.68 million tonnes, or 2%, from 172 million tonnes in 2015-16. The U.S.D.A. commented, “Global exports are raised 1.9 million tonnes, led by a 1-million-tonne increase for Australia, a 0.7-million-tonne increase for the United States, and 0.5-million-tonne increases each for Canada and Ukraine. Global export gains are partially offset by a 1-million-tonne decrease for the European Union on the projected supply reduction.”

The U.S.D.A. forecast world wheat ending stocks in 2016-17 at a record 248.37 million bus, down 0.7 million tonnes from the September projection but up 8.71 million tonnes from 239.66 million tonnes in 2015-16, the current record.

Bakery Flour Bookings of bakery flour were light last week with a few exceptions. Price adjustments were minor and mixed, higher in the case of pan bread flour and spring grades and lower in the case of soft flour.

Standing out during an otherwise mostly quiet week in flour markets were individual cookie-cracker and specialty bakers booking a portion of their prospective April-December 2017 soft flour needs. These bakers were motivated by flour pricing well within their budgets for the upcoming year and indications

that wheat futures may have set seasonal lows, which raised the prospect of upside price risk in the market going forward.

With those few exceptions, bakers held back last week comfortable with flour coverage for the remainder of 2016. Even component coverage was mostly lacking. Coverage of the futures component of flour contracts already was extensive well into 2017. Bakers covered basis and millfeed credits at their own pace to complete contracts through December.

Fourth-quarter flour coverage was estimated at about 60%; when component coverage committing bakers to flour contracts with particular suppliers is included, bakers’ commitments to fourth-quarter flour coverage was 80% or more. First-quarter 2017 flour coverage was about 25% to 30%.

Flour mills ran six days plus with a few scattered mills at seven days in the Central states and Northeast.

Family Flour Sales and shipments of national and regional brands of family flour expanded seasonally. Carlot list prices were unchanged.

Orders picked up significantly as grocers and other buyers sought to ensure their shelves were stocked and their pipelines were adequate to accommodate baking season demand. The strong pace of business was seen in all regions and by all manufacturers.

Private label flour was offered in some markets as low as $1.75 per 5-lb bag, but deeply discounted pricing for national and regional brands was not yet in evidence. It was expected once the fall baking season is in full swing, branded product may be offered as low as two 5-lb bags for $4. Low wheat prices facilitated a more aggressive approach to promotions.

In the market for private label flour, grocers, club stores, mass merchandisers and other principal buyers earlier covered all of their needs for the baking season. Coverage for the first quarter of 2017 was estimated at around 75% with April-June coverage estimated at about 25%.

Packaging lines were running full tilt. Manufacturers with warehouses have filled them and were ready to meet the fall demand.

Semolina Bookings of semolina, granulars and durum flour were limited last week. Price adjustments were minor.

The price of choice milling hard amber durum as quoted at the Chicago gateway for delivery beyond remained $8.50 a bu. The Minneapolis price was $8.20. The market has remained stable during the past few weeks despite large harvests on both sides of the United States/Canada border. Mill pipelines through the end of 2016 were mostly adequate. There was no trading of milling quality durum in the spot market to warrant raising or lowering current quotes. One miller noted a train with off-grade durum traded at about $8.35 a bu, which reinforced ideas the market for milling quality was firm. Strength was derived from slack movement and uncertainty over the quality of the U.S. and Canadian crops.

Farmers seemed to be storing their durum as the fall crop harvest commanded most attention in the country, leaving millers and pasta manufacturers to wonder what quality will be available in the course of the current crop year.

Pasta manufacturers earlier covered their semolina needs through December. The focus was on first-quarter 2017 needs. Millers indicated January-March coverage remained at about 30%.

Durum mill grind was strong, ranging from six to seven days. Shipments were brisk during what typically is the strongest season of the year.

Cash Wheat HARD WINTER. Premiums on hard red winter wheat in Kansas City were 25c a bu higher to 2c lower last week. The basis was choppy through midweek with gains alternating with losses at low-to-middle protein levels. For the week, 2c-per-bu losses were posted on wheat with protein of 12% through 12.4%. Premiums on ordinary and 11%-protein wheat spiked on mill demand. The high end of the premium range on ordinary wheat moved into positive territory for the first time since late June. Premiums advanced 12c a bu across the top third of the scale.

Mills sought to pry higher-protein supply from firm country hands, which was difficult in a low wheat protein year, especially in the midst of a record fall crop harvest. Cash spring wheat was priced at wide premiums to hard red winter wheat of the same protein, which argued for even higher values in the high-protein hard red winter wheat basis. The basis on 13%-protein hard red winter wheat was quoted 83c a bu higher than on 12%-protein wheat and $1.19 a bu higher than on 11%-protein wheat.

Mills earlier purchased a large portion of their wheat needs for the fourth quarter of 2016, but there were gaps to fill. Fresh business in the market for to-arrive wheat remained lacking, though, with offers viewed as too high by mills. At the same time, the spread between bids and offers narrowed.

Rail transport has been mostly current with shipping obligations, and mills were receiving wheat for application against October contracts. Trucks were another matter. They were commandeered by the fall crop harvest. This was expected to remain the case until the harvest ends.

The U.S. Department of Agriculture indicated winter wheat was 73% planted in Kansas by Oct. 16 (73% as the five-year average progress for the date), 78% in Oklahoma (74%), 65% in Texas (62%), 99% in Nebraska (95%), 96% in Colorado (94%), 96% in South Dakota (90%) and 84% in Montana (88%).

Concerns mounted over dryness in the western sections of the belt.

The U.S.D.A. indicated the forecast record Kansas corn crop was 62% harvested by Oct. 9 compared with 64% as the recent five-year average for the date. The Kansas soybean crop was 15% harvested versus 29% as the average.

Wheat growers in the Southwest — Kansas, Oklahoma, Texas, Nebraska and Colorado — collected $5,540,620 in loan deficiency payments on 18,227,198 bus of wheat during the week ended Oct. 17, equating to average L.D.P. of around 30c a bu. To date this crop year, Southwestern producers have collected $74,305,561 in L.D.P.s on 386,622,514 bus of wheat. Kansas growers alone have collected $45,492,911 in L.D.P.s on 241,769,119 bus of wheat, or on 52% of the state’s crop.

HARD SPRING. Premiums on hard red spring wheat in Minneapolis were 15c a bu higher to 5c lower last week. The sole losses were posted at 13% and 13.5% proteins. The market’s tone otherwise was firm.

Rail wheat shipments to the spot market remained crimped because of the country’s preoccupation with the fall crop harvest. At the same time, rail shipments were received for application against October contracts. While mill demand wasn’t urgent, mills and resellers short on commitments to mills were expected to maintain interest in additional wheat that may be offered on the spot market and fill whatever storage space they had.

The North Dakota soybean harvest was 86% completed by Oct. 16 compared with 74% a week earlier and 79% as the recent five-year average for the date.

SOFT RED. Wheat movement across the Central states has slowed with the expansion of the fall crop harvest. Individual mills raised bids in the hope of encouraging the country to load more wheat. Most mills have inventories and pipelines adequate to see them through the harvest but also would rest assured if they saw more wheat offers.

Posted St. Louis-area mill bids for nearby were firm at 45c over Chicago December, up 5c a bu. Chicago mill bids for nearby were at the Chicago December price. Toledo mill bids for October were at the Chicago December price; November, also December price. Elevator bids were 14c under Chicago December, deferred pricing only. Cincinnati elevator bids were 30c under Chicago December. Michigan white wheat mill bids were 10c under December to the Chicago December price. Gulf bids on soft red winter wheat for October were 45c over Chicago December, down 2c.

The U.S.D.A. indicated winter wheat seeding by Oct. 16 was 37% completed in Missouri (35% as the five-year average for the date), 43% in Illinois (50%), 52% in Indiana (51%), 61% in Ohio (56%) and 56% in Michigan (67%).

Wheat Futures A two-week rally in wheat futures lost momentum last week. Kansas City wheat futures gained ground against both Chicago and Minneapolis futures, partly because of the market’s increasing attention on dryness in the western hard red winter wheat belt.

While futures traded above their recent ranges during the week, only Minneapolis futures have made a real run at a breakout with the Minneapolis December recently trading to the highest level since late June. Minneapolis futures were given a boost by concerns over the quality of the Canadian crop.

Price advances recently seen in Chicago and Kansas City futures were much less impressive and were viewed more as an expansion of the existing range not far above contract and multi-year lows than a breakout. Given ample U.S. and record world wheat supplies, it was difficult to sustain a rally. Looming behind the week’s trading, though, was recognition the market was vulnerable to a short-covering rally. The market only lacked a pretext. Dry conditions in the western hard red winter wheat belt may deliver a jolt, but the first U.S. Department of Agriculture assessment of winter wheat conditions won’t be released until Monday, Oct. 24.

The U.S.D.A. indicated the 2017 winter wheat crop was 72% planted by Oct. 16 compared with 73% as the recent five-year average for the date. Winter wheat emergence was 47% compared with 45% as the five-year average.

The world export market provided mixed signals. Egypt purchased 120,000 tonnes of Russian wheat and none from the United States. The U.S.D.A. 24-hour reporting service indicated 114,000 tonnes, including 41,000 tonnes of soft white wheat and 73,000 tonnes of hard red spring wheat, were sold to “unknown destinations” for delivery in the current marketing year, and the Japanese agriculture ministry bought 75,195 tonnes of U.S. wheat in a routine weekly tender.

The U.S.D.A. indicated net export sales of U.S. wheat totaled 513,800 tonnes during the week ended Oct. 13, up 5% from a week earlier and up 3% from the prior four-week average. Wheat exports in the week were 461,500 tonnes, up 22% from the previous week but down 25% from the prior four-week average.

Millfeed

Prices registered mixed changes in slow trading last week. Traders expected business to increase as month end approached. Values firmed in the Upper Midwest and Northeast, declined in the Southwest and were mixed or unchanged in other regions.

Supply and demand were precariously balanced in most regions, but were subject to pressure with additional weekend loads or weakness in corn futures. Ample supplies of competitive feed ingredients kept a lid on prices. Traders continued to anticipate the arrival of colder weather, which typically boosts demand for manufactured feed.

The creep feed demand season has passed in the Upper Midwest, which limited price gains in that region and resulted in some material being shipped to the Southwest. Demand from catfish feeders in the Southeast has held up but was expected to decline shortly.

Flour grind averaged six days in most regions, with individual mills running seven days and a few down for fumigations over the weekend.

Millfeed was $78 a ton in Kansas City and $72 in Minneapolis, on a rail basis, compared with corn at $112 a ton and sorghum at $99 a ton, both K.C. Corn gluten feed was up $5 at $120 a ton, distillers’ dried grain was steady at $115 a ton, and dehydrated alfalfa was unchanged at $215 a ton, all K.C.

Soy Products Soy flour prices in the spot market advanced in keeping with gains in soybean meal futures and changes in basis levels. Shipments of new orders remained about two weeks out.

Soy complex futures advanced last week. Soybean meal futures gained about $6 a ton. Soybean oil futures advanced on tight global vegetable oil stocks. Soybean futures hit 3½-week highs early last week but fluctuated daily as reports of high yields from the advancing record-large U.S. soybean harvest brought pressure while higher crude oil prices and strong export sales offered support. Prices were up about 20c a b u for the week.

Soybeans in the 18 major states were 62% harvested as of Oct. 16, behind 73% at the same time last year but near the 2011-15 average for the date of 63%, the U.S. Department of Agriculture said in its weekly Crop Progress report. Most of the top producing states, including Illinois and Iowa, were behind the average pace.

Export demand continued to be the primary force underpinning soybean prices. The U.S.D.A. last week reported private sales of 706,500 tonnes of U.S. soybeans to China and 377,000 tonnes to “unknown destinations” for the current marketing year. A week earlier, a Chinese delegation of soybean importers signed purchase agreements in Iowa to buy 5.1 million tonnes of U.S. soybeans in the coming months. China was expected to import 86 million tonnes of soybeans in 2016-17, including 30 million tonnes from the United States.

Net export sales of soybeans in the week ended Oct. 13 were 2,008,500 tonnes, up 42% from a week earlier and up 30% from the prior four-week average, the U.S.D.A. said. Sales were well above trade expectations that ranged from 750,000 to 1,400,000 tonnes. Exports for the week totaled 2,671,400 tonnes, a marketing year high.

Soybeans inspected for export for the marketing year through Oct. 13 totaled 6.8 million tonnes, up 14% from the same period a year earlier, the U.S.D.A. said, while total export sales commitments for the year to date were up 26%..

Net export sales of soybean meal in the latest week were 398,000 tonnes.

Corn Products Prices of cornmeal and other corn products eased last week as corn futures declined. Mill grind remained active.

Corn futures fluctuated on either side of steady. They were up about 3c a bu through Wednesday only to see prices fall after midweek and end slightly lower for the week. Pressure came mainly from good harvest conditions for what was expected to be a record-large crop. Support came from spillover from strong soybean values, higher crude oil prices (may translate to higher ethanol demand and prices) and strong export demand.

Corn in the 18 major states was 46% harvested as of Oct. 16, behind 54% at the same time last year and slightly behind 49% as the 2011-15 average for the date, the U.S. Department of Agriculture said in its weekly Crop Progress report. Progress in most key states in the eastern Corn Belt was ahead of the average pace, while progress in the western Corn Belt, including top-producing Iowa, and the in the Upper Midwest was behind average.

Net export sales of U.S. corn in the week ended Oct. 13 were 1,023,000 tonnes for 2016-17, up 17% from a week earlier but down 8% from the four-week average, the U.S.D.A. said. Sales were slightly above trade expectations.

Corn exports have been the “star” of the grains so far this year. Corn inspected for export for the marketing year through Oct. 13 totaled 4.4 million tonnes, up 80% from the same period last year, with total year-to-date export sales commitments up 89%, the U.S.D.A. said.

Oats Food-grade oats flakes prices were adjusted higher again last week as oats futures continued to advance. After trading in a narrow range of $1.70@1.80 a bu during September, December oats futures have soared nearly 40c a bu, or more than 20%, in October on reports of production declines from 2015 of 28% in the United States and 13% in Canada.

Seasonal demand for hot breakfast cereals, delayed by warm fall weather in many areas, should become a feature in coming weeks.

Rice U.S. milled rice and rice byproducts prices were unchanged in key southern states, although byproducts supplies were limited, the U.S.D.A. said. World milled rice prices posted by the U.S.D.A. also were unchanged.

The rice crop in the six major states was 93% harvested as of Oct. 16, even with a year ago and ahead of 86% as the 2011-15 average, the U.S.D.A. said. The harvest was completed in Louisiana and Texas and was at 98% in top-producing Arkansas.

Net export sales of U.S. rice in the week ended Oct. 13 were 69,600 tonnes for 2016-17, down 54% from a week earlier and down 1% from the prior four-week average, the U.S.D.A. said.

Sweeteners Cash sugar prices were unchanged last week amid steady to slightly more active trading. The sugar beet harvest made strong progress in some states but generally remained behind average. Cane harvesting continued in Louisiana and Florida with Hurricane Matthew appearing to have had only a limited effect.

Bulk refined cane sugar prices were steady at 34c to 36.5c a lb f.o.b. plant through 2016-17. There remained a firm undertone to the cane sugar market with some buyers, especially on the West coast, still finding supply at acceptable prices hard to come by. In addition, there still was a lack of new offers from Mexico as there has been no apparent resolution in attempts by the United States to adjust terms of the 2014 countervailing duty suspension agreements to include more raw sugar that would ensure supply for U.S. refiners who depend on imports.

Louisiana sugar cane was 17% harvested, just ahead of 16% both last year and as the five-year average, the state U.S. Department of Agriculture office said. New crop planting was completed.

Bulk refined beet sugar was unchanged at 28.5c to 29.5c a lb f.o.b. Midwest through 2016-17. Some processers remained firm at 29c and above and have not sold below that level for some time. But there remained supply available from specific processors at 28.5c a lb. Pricing was supported to some degree by the wide discount of beet sugar to refined cane sugar. Beet sugar sales appeared to have picked up some from a week earlier, and supplies were readily available.

Sugar beets in the four major states were 63% harvested as of Oct. 16, up from 38% a week earlier, even with the 2011-15 average for the date but behind 76% a year ago, the U.S.D.A. said in its Crop Progress report. Beets were 81% harvested in North Dakota (79% as the average), 71% in Minnesota (76%), 27% in Michigan (25%) and 52% in Idaho (40%). Harvesting in other states was behind average.

The corn sweetener market was quiet with dry dextrose contracting still progressing at a snail’s pace. One broker said he could not get an offer from his regular supplier for 2017. Other brokers and buyers in some cases have been able to get pricing flat to lower from 2016, depending on contracted levels from the prior year. But some buyers also were holding out for still lower pricing. Dry dextrose was offered earlier in the season at a 75c-a-cwt increase from 2016 contracted levels, but that offer expired at the end of September and now appears on the high side of possible pricing.

Contracting of liquid products for 2017 mostly was wrapped up a month or more ago at prices up $1.50 to $2.50 a cwt from 2016 contracted levels, depending of product and prior-year pricing, although a number of mostly smaller buyers continued to hold out for no increase.

Edible Oils Bookings of edible oils and fats were limited last week. Price changes were mixed.

Soybean oil prices advanced. Soybean oil futures climbed to the highest levels since August 2014 with this strength partly tied to the global supply and demand of vegetable oils. One veteran market observer pointed out the world vegetable oil ending stocks-to-use ratio in 2016-17 was forecast to be the lowest in 13 years. While the situation was far from urgent, it did suggest firmness in world vegetable oil markets. The cash basis on soybean oil was little changed.

The firmness in the nearby cash soybean oil basis had little effect on buyers given basis coverage through December already was solid. Basis coverage for the first quarter of 2017 increased to about 70%.

The strong soybean oil futures market discouraged additional bookings. Contract balances on average extended about 45 days compared with 45 to 60 a couple of weeks ago.

The share of soybean oil in the value of the soybean crush was strong at 36% to 37%, indicating good demand for soybean oil, including from the biodiesel sector, and weaker demand for meal.

The National Oilseed Processors Association estimated the September soybean crush at 129,405,000 bus. The estimate was higher than the average of pre-report trade estimates at 127.7 million bus and compared with 131,820,000 bus in August. NOPA estimated soybean oil stocks on Sept. 30 at 1,376 million lbs compared with 1,500 million bus as the average pre-report trade estimate and 1,620 million lbs at the end of August.

The U.S. Department of Agriculture indicated net export sales of soybean oil during the week ended Oct. 13 totaled just 300 tonnes with increases for Mexico, Canada, the Dominican Republic and Trinidad nearly offset by a reduction for Guatemala. The U.S.D.A. said 40,000 tonnes of soybean oil were exported to China during the week.

Most U.S. buyers of palm oil earlier purchased what supply they required to carry them through the fall baking season. Meanwhile, palm oil futures as traded on the Bursa Malaysia Derivatives Exchange posted two-year highs.

Lard prices declined with most baking season purchases completed.

Dairy Products Dry dairy product prices mostly were steady to lower last week, cheese values were mixed, and butter was weaker.

High-heat nonfat dry milk (N.D.M.) prices were unchanged. Inventories were tight, and spot offers were nil. Production was aimed at meeting contractual needs, but output was expected to increase to meet yearend demand.

Low/medium-heat N.D.M. quotes were steady to weaker. The market was seen as unsettled as some sellers expected prices to rise as demand builds later in the year, but some buyers waited to place orders in anticipation of lower prices. Inventories varied, but product generally was available. Production was steady.

Dry whey prices were lowered 1c a lb based on weakness in the Central region, but prices were steady to firm in other regions. Production was steady. Demand varied with some buyers waiting to see if prices would decline while spot loads moved readily. Inventories were tight in most regions although some processors were holding stocks for later in the year when demand was expected to increase.

Prices of 34% whey protein concentrate were left unchanged in a mixed market, with N.D.M. prices said to be a limiting factor. Production was steady but at a lower level than in recent years. Demand varied by brand and desired use.

Lactose prices were unchanged. Production was steady, and inventories were tight and committed. Domestic and export demand was good.

Dry buttermilk prices were raised 2c a lb with good demand from the bakeries and confectioners noted. Most buying was for near-term needs. Inventories were tight in the Central and East but building in the West. Production was steady.

Casein prices tumbled mostly due to declines in global dairy product auctions, the U.S. Department of Agriculture said.

CME Group cheddar prices surged last week while prices of wholesale varieties eased. Cheese production was active. Sales for retail began to increase in anticipation of holiday demand. Manufacturers’ inventories were seen as comfortable.

Butter prices declined. Production was active amid ample cream supplies. Some churners managed inventories through spot sales, which led to weaker prices. Demand was building seasonally.

Egg Products Egg products prices mostly were steady last week with the exception of 2c-a-lb lower values for frozen and liquid whole eggs. Trading was steady with yolk demand said to be driving the products market. Inventories varied.

Breaking egg prices held near recent lows, but retail egg prices moved higher, which the trade hoped indicated an increase in retail egg demand. Slow retail movement has meant ample egg supplies for processors, which has translated to historic lows for breaking stock in recent weeks and pressure on egg products, even if some processors have been reluctant to build inventories because of concerns about lost demand for egg products after last year’s avian influenza outbreak.

Cocoa Cocoa powder prices were unchanged last week. Trading was slow. Many users covered needs a couple months ago when cocoa butter prices were near two-year highs and now were willing to wait to complete 2017 coverage, which, in most cases, was seen as fairly solid through midyear and in some cases well into the second half of 2017.

Cocoa butter prices tumbled more than $400 a tonne, or 5%, in the week ended Oct. 14, the lowest since late May and only 2% above year-ago levels.

Third-quarter cocoa bean grind data offered mixed signals. Last week, the National Confectioners Association reported North American grind at 124,412 tonnes, up just 0.15% from the same quarter last year and below trade expectations of 2% to 3%. Two weeks ago, European third-quarter grind was reported at 343,935 tonnes, up 3% from the same quarter last year but at the low end of expectations. Asian grind was strong at 167,737 tonnes, up 12%.

Some traders warned that much of the increase in European and Asian grind was a temporary shift from origin processors, especially from West Africa, which had a lower quality crop last year, and thus did not represent new demand for cocoa.

Concerns about cocoa demand have kept pressure on cocoa bean futures, especially with a larger crop forecast for 2016-17, which began Oct. 1. Nearby New York cocoa bean futures last week held above early October lows but still were down about 13% from August highs.

http://af.reuters.com/article/ghanaNews/idAFL8N1CX53R

Oct 27, 2016; by Ange Aboa, REUTERS

Blommer Chocolate to buy only certified cocoa by 2020 ABIDJAN Oct 27 (Reuters) - Chicago-based Blommer Chocolate Company, the biggest cocoa processor in North America, plans to source only certified cocoa beans by 2020, its president and chief operations officer said on Thursday.

Certification schemes, including Rainforest Alliance, UTZ, and Fairtrade, have become an important industry tool for ensuring social, environmental and economic sustainability in cocoa farming communities. Under such programmes growers must show that they adhere to minimum standards and are compensated in the form of bonuses.

"Certified beans currently represent 60 percent of the total volumes we buy and that will increase by 5 to 10 percent each year," Peter Blommer said on the sidelines of a cocoa sustainability conference in Ivory Coast. "I am proud of this increase, and the objective is to reach 100 percent by 2020," he added.

West Africa - home to top producers Ivory Coast and Ghana - produces around 70 percent of the world's cocoa. However the industry there is struggling with low incomes, ageing farmers and plantations and a lack of interest by the younger generaton in working in the business.

Blommer, which has a processing capacity of 200,000 tonnes of beans, currently buys around 100,000 tonnes of certified cocoa from West Africa and works via public-private partnerships to improve conditions there. "The current challenges are low yields and a lack of knowledge on the level of best practices. This is an opportunity for the industry to train farmers in the aim of improving quality but also the quality of beans," Blommer said.

Oct. 27, 2016; by Dominique Patton, REUTERS

Brazil crystal sugar touches new all-time high SAO PAULO, Oct 27 (Reuters) - A 50-kg bag of crystal sugar reached 100.68 reals ($32.12) at the close of business in Sao Paulo on Wednesday, an all-time high as the cane harvest ends earlier than expected and the world heads into the second year of deficit in the sweetener. According to Cepea/Esalq, a University of Sao Paulo price discovery center, the bag of crystal sugar rose 0.3 percent from Tuesday's value of 100.37, the previous record and the first time a bag surpassed the 100-real mark since the institution started to collect prices in May, 2003. The price move underscores a situation of a global shortage in the sweetener after weather problems reduced output in important global producers last year.

"In addition to mills' firm stance on prices, prospects for a smaller supply of sugar demand the global market continue to give support to prices in Brazil," Cepea/Esalq said in a note earlier this week.

Sugar analysts Datagro projects a global sugar supply deficit of 8.26 million tonnes in the 2016/17 crop year.

The prices on the domestic sugar market are provoking a few cancellations of export deals, an operation known in the market as "washouts." Some mills are paying the costs to cancel contracts with trading houses, opting instead to sell the sugar locally.

According to a senior trader at a leading international sugar trading firm operating in Sao Paulo, some 300,000 tonnes of export deals had been canceled so far in the current crop in Brazil's center-south due to companies finding better deals on the local market. But the trader, who asked not to be named because he was not authorized to speak publicly on the subject, did not consider the amount relevant considering the exportable volume expected from Brazil's center-south this year near 25 million tonnes. "This (washouts) is something that happens every year. Sometimes more, sometimes less, and for different reasons," he said.

Brazil's center-south cane harvest has turned out to be smaller than initially expected, as lower agricultural yields reduced the crush from initial estimates of nearly 630 million tonnes to around 600 million tonnes.

With less cane to process and drier weather most of the season, mills will end harvest early, around mid-November, which could increase the tightness during a longer inter-crop period from December to April.

($1 = 3.134 Brazilian reais)