Weekly National Molasses Report

SPRINGFIELD - Jul 6/04 - SNS -- The USDA released its latest weekly national report covering the sugarcane molasses market in that country. The report covers both cane blackstrap and feed grade merchandise

National Molasses Report

IMPORTANT LETTER AT BOTTOM OF REPORT

Offers for sugarcane molasses were generally steady this week.  New Orleans offers were not established.  Domestic seasonal demand remains light to moderate with supplies slowly decreasing.  World demand continues to increase as their supplies diminish.  Sugar beat harvest is well underway in California with average yields and good demand.

Feed Molasses (minimum 79.5 brix, 43% sugars, except where noted) offers only
(premiums amd discounts to apply) and tank car or truck, fob terminal, prompt
delivery, dollars/ton, 1/

Type and Market Area       As of Noon:      Last Week         Last Year
                           07/06/2004       06/28/2004        07/07/2003
Cane Blackstrap- *Offers only (premiums and discounts to apply)*

 New Orleans               no quote         60.00-78.00       55.00-60.00
 Houston                   70.00-75.00      70.00-75.00       62.50
 South Florida             67.50            67.50             67.50

1/ Per ton prices are based on 171 gallons for blackstrap molasses. To
compute cents per gallon prices on cane molasses divide dollars per ton by
171 gallons ($ per ton divided by 171 gallons = cents per gallon). Ton-
2,000 lbs; Gallon= U.S. gallon.

June 14, 2004

Dear Molasses Industry member:

The USDA-AMS Livestock and Grain Market News Branch (LGMN) has collected data to
publish Molasses market information since 1954.  LGMN is committed to publishing
reliable and accurate information that does not disclose proprietary
information.  However, due to consolidation in the industry an individual
company's information could be published.

LGMN has only a few contacts that provide information on a regular basis.  With
fewer and fewer industry contacts trading in molasses, we have reached the point
where there is not an adequate market test for molasses prices.

As a result, we plan to discontinue Molasses Market News reporting as of January
1, 2005.  However, we would welcome the opportunity to work with industry
members prior to January 1, 2005, to identify any alternatives that may exist to
continue reporting molasses prices.  Please contact Jim Epstein on 515-284-4460
or by e-mail at james.epstein@usda.gov to further discuss molasses price
reporting.

Source:  USDA-IL Dept of Ag Market News Springfield, IL 217-782-4925

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