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”
Corn Futures Adjusting to Production Downgrades from Europe and Argentina
Corn prices saw modest gains of around 0.25% Friday, putting corn down for the week 0.84%. Monday’s World Agricultural Supply and Demand Estimates (WASDE) report from USDA concluded the U.S. ending stocks estimates were neutral for corn. The world ending stocks estimates were seen as moderately bearish for corn. The USDA cut corn production 415 million bushels (mb) to 13.94 billion bushels (bb). Coceral made “significant downward revisions” in France, Germany, Italy, Hungary and Romania. Argentina is also facing drought conditions. … Continue reading “Corn Futures Adjusting to Production Downgrades from Europe and Argentina”
Corn Futures Rallied Ahead of WASDE Report
Corn prices saw gains of more than 3% Friday, putting corn up for the week 2.89%. Monday the market gets the World Agricultural Supply and Demand Estimates (WASDE) report from USDA. More rain is seen for the Corn Belt in the coming days, particularly in parts of Wisconsin and Michigan. On Thursday, commodity funds were net sellers of corn (3,000). Meanwhile in France due to ongoing hot, dry weather, FranceAgriMer lowered its quality ratings for the 2022 corn crop for … Continue reading “Corn Futures Rallied Ahead of WASDE Report”