FAO World Food Price Index Fell in January 2024 to lowest level since February 2021

World food prices as measured by the FAO Food Price Index continued to fall, down for a sixth month to 118 index points in January 2024, the lowest level since February 2021. The index is 13.7 points (10.4%) lower from a year ago, well off the record hit in March 2022 after Russia invaded Ukraine. Cereals prices were down 2.2% to December 2020-lows as global wheat export prices declined amid strong competition among exporters and arrival of recently harvested supplies … Continue reading “FAO World Food Price Index Fell in January 2024 to lowest level since February 2021”

Ag Tech Giant Deere Lowered Guidance as Farming, Construction and Forestry all Hit by Slowing Demand

Iconic farming, forestry and construction equipment maker Deere reported earnings before the open Friday. DE saw net income in the fiscal fourth quarter of $2.37 billion, or $8.26 a share, up from $2.25 billion, or $7.44 a share, a year earlier and ahead of the consensus estimate of $7.41 a share. Revenue fell 1% from a year earlier to $15.4 billion in the fourth quarter, however it beat the consensus estimate of $13.66 billion. The company saw its stock fall … Continue reading “Ag Tech Giant Deere Lowered Guidance as Farming, Construction and Forestry all Hit by Slowing Demand”

FAO World Food Price Index Fell in March for Twelfth Consecutive Month

World food prices as measured by the FAO Food Price Index continued to fall, down for a 12th month to 126.9 points in March 2023, the lowest level since July 2021, and down 20.5% from the record hit in March 2022 after Russia invaded Ukraine. Sugar prices again were the anomaly, up 1.5% hitting its highest level since October 2016 amid concerns over lower global availabilities for both food and as a biofuel component. Meat prices rose 0.8%, namely bovine … Continue reading “FAO World Food Price Index Fell in March for Twelfth Consecutive Month”

FAO World Food Price Index Fell in February for Eleventh Consecutive Month

Food prices continue to fall after they were almost vertical after Russia invaded Ukraine. World food prices as measured by the FAO Food Price Index fell for the eleventh consecutive month in February. The index fell to 129.8 points in February 2023, down 18.7 percent from the record high 159.7 from March 2022. Sugar prices were the anomaly, they surged 6.9 percent, reaching the highest level since February 2017. FAO Food Price Index Highlights » The FAO Food Price Index* (FFPI) averaged … Continue reading “FAO World Food Price Index Fell in February for Eleventh Consecutive Month”

Understanding Commitments of Traders Reports – COT, TFF and DCOT

The Commodity Futures Trading Commission (CFTC) publish the Commitments of Traders (COT) reports with a breakdown of open interest for futures and options on futures markets. More specific, disaggregated reports (DCOT) came after the GFC in 2008. They are considered very helpful in understanding the positioning of traders in the futures market. Disaggregated Commitment of Traders Reports (DCOT) came about from a recommendation made by a CFTC September 2008 staff study about the influence of swap dealers and index traders … Continue reading “Understanding Commitments of Traders Reports – COT, TFF and DCOT”

Corn Futures Steady as Harvest Season Winds Down

Corn prices corn prices down just 0.66% as harvest winds down and farmer selling slows.  The European Commission reduced their corn crop outlook by another 600k MT to 54.9 MMT to 25% lower yr/yr with imports 1 MMT higher to 22 MMT. The summer’s historic heat wave has crushed the crop from France to Ukraine. Mexico’s agriculture ministry has indicated that the country’s 2014 ban on genetically modified corn would not be amended. Mexico’s U.S. imports could be cut in … Continue reading “Corn Futures Steady as Harvest Season Winds Down”

Corn Futures Largely Steady with French Crop 92% Harvested

Corn prices corn prices rallied back Friday with some relief from the big reversal in stocks and the dollar to finish the week down 0.91%. The ethanol market is not signaling the need for enlarged production with current stocks filling demand. Gasoline consumption has failed to match year-ago levels since mid-summer. DDGS cash prices were mostly $5 to $15/ton lower from $210 (IN) to $340 (MO) regionally. The June 30 Acreage report showed corn again the largest crop produced in America … Continue reading “Corn Futures Largely Steady with French Crop 92% Harvested”

Corn Futures Higher Ahead of WASDE Report from USDA

Corn prices corn prices rallied back Friday over 1.0% to finish the week up 0.81% ahead of the next WASDE report from USDA,. December futures trended 7.5 cents higher to $6.83, with March futures up 7.25 cents to $6.9050. French farm office FranceAgriMer reports that 67% of the country’s corn harvest is now complete, up from 51% a week ago and well ahead of 2021’s pace of 6%. The ethanol market is not signaling the need for enlarged production with … Continue reading “Corn Futures Higher Ahead of WASDE Report from USDA”

Corn Futures Supported by Lower Stocks and Production Among Black Sea Disruption

Corn prices corn prices rallied back Friday 1.25% to finish the week largely unchanged.  USDA reported corn stocks were 1.377 bbu on September 1st, well below the average trade estimate. USDA also revised 21/22 production 41 mbu lower to 15.074 bbu. That was exclusively through WCB revisions. Black Sea supply concerns from Putin’s annexation of regions of Ukraine threatens to export balances. The ethanol market is not signaling the need for enlarged production with current stocks filling demand. Gasoline consumption … Continue reading “Corn Futures Supported by Lower Stocks and Production Among Black Sea Disruption”

Corn Futures Balance Between Soft Ethanol Demand and Black Sea Disruption Threats

Corn prices saw modest losses for the week 0.33%.  Black Sea supply concerns from Putin’s mobilization of more Russian troops and threats to exports balances out with insipid export demand and soft energy markets. The ethanol market is not signaling the need for enlarged production with current stocks filling demand. Gasoline consumption has failed to match year-ago levels since mid-summer. The June 30 Acreage report showed corn again the largest crop produced in America in 2022. USDA raised 2022 acreage expectations for … Continue reading “Corn Futures Balance Between Soft Ethanol Demand and Black Sea Disruption Threats”