Iran Applies to Join China and Russia in BRICS

Iran, following a virtual summit last week where Chinese President Xi Jinping joined Russian President Vladimir Putin and other BRICS leaders, announced they would like to join BRICS themselves. The move, while an obvious cheap political ploy to divert from the G7 meeting going on over the weekend underscores the so-called outcast triad of Iran, China and Russia. The three nations have been largely labeled as outcasts for various reasons by the majority of the civilized world. The term BRIC … Continue reading “Iran Applies to Join China and Russia in BRICS”

Corn Futures Fell 7.8% For the Week Ahead of USDA Planted Acres and Quarterly Stocks Report

The selling in corn and other grain futures continued this week. Corn futures fell 7.8% for the week though it reversed some of those losses Friday with some short covering. Much of the pullback has been taking pressure off from the speculative surge on record corn export volumes and higher unit values. Focus is on next Thursday’s planted acres and quarterly stocks updates from USDA is one of the agency’s most highly anticipated reports of the entire year. The report … Continue reading “Corn Futures Fell 7.8% For the Week Ahead of USDA Planted Acres and Quarterly Stocks Report”

Brazil Central Bank Aggressively Raises Rates for Eleventh Consecutive Time, another 50bp to 13.25%, Signals More to Come

Banco Central do Brasil​ again aggressively hiked its benchmark interest rate by .50% to 13.275%. It was the tenth consecutive interest rate hike since 2021 when the bank began its current tightening cycle early last year, the Selic was at a record low 2%. The impact is being felt, last week, Brazil’s 12-month inflation rate declined for the first time in 2022 in May, and retail sales increased in April at the slowest pace so far this year. The lending … Continue reading “Brazil Central Bank Aggressively Raises Rates for Eleventh Consecutive Time, another 50bp to 13.25%, Signals More to Come”

Corn Prices Try to Reverse Losing Streak Bouncing on Smaller Ukrainian and Chinese Crops

Corn futures prices reversed pre WASDE report losses Friday inched $0.01-$0.02/bushel higher on smaller Ukrainian and Chinese corn crops immediately following its release. THE USDA said lower 2021/22 U.S. corn exports will help grow 2022/23 stocks.  The USDA was increasingly more optimistic about planting progress in Ukraine. Corn prices finished the week down another .9% falling for the fifth consecutive time, the longest losing streak since the summer of 2020. The selling appears to have much to do with taking pressure … Continue reading “Corn Prices Try to Reverse Losing Streak Bouncing on Smaller Ukrainian and Chinese Crops”

Corn Prices Losing Streak Accelerates on Putin Promises of Releasing Ukrainian Corn Supplies

Corn futures prices were $0.03-$0.04/bushel lower on reports pushed by African leaders’ optimism that Russia will release Ukrainian corn supplies, though the reality is a little less truthful. Weather also impacted prices with weekend rains likely to encourage crop development. Corn prices finished the week down 6.5%, falling for the fourth consecutive time, the longest losing streak since the summer of 2020. The selling has much to do with taking pressure off from the speculative surge on record corn export … Continue reading “Corn Prices Losing Streak Accelerates on Putin Promises of Releasing Ukrainian Corn Supplies”

FAO World Food Price Index Fell in May Led by Lower Vegetable Oil and Dairy Prices

Food prices have been almost vertical for the past year, though we have seen a respite in the past few months. World food prices as measured by the FAO Food Price Index dropped 0.6% on the month to 157.4 in May 2022. It was the second month of declines, though still sitting just under the record high 159.7 from March. Price falls were seen in the vegetable oil index (-3.5%), dairy price index (-3.5%) and the sugar price index (-1.1%). Price … Continue reading “FAO World Food Price Index Fell in May Led by Lower Vegetable Oil and Dairy Prices”

Corn Prices in the Longest Losing Streak Since Summer of 2020

Corn futures prices rose 1.5%, primarily with grain traders squaring positions ahead of the long weekend. Despite the rise corn prices finished the week down for the fourth consecutive time, the longest losing streak since the summer of 2020. The selling has much to do with taking pressure off from the speculative surge on record corn export volumes and higher unit values. Total U.S. agricultural exports are expected to improve $7.5 billion to reach a record $191.0 billion. Longer term … Continue reading “Corn Prices in the Longest Losing Streak Since Summer of 2020”

Ammonia and Urea Fertilizer Prices Hit Exhaustion and Collapse 30%

Commodity prices at some point reach exhaustion, in markets driven by speculators these moves are extreme. We saw it earlier in the year with nickel and we are seeing it in the fertilizer complex with Ammonia and Urea spot prices. Green Markets, a Bloomberg company reported the June spot price in Tampa, Florida for the nitrogen fertilizer ammonia settled at $1,000 per metric ton, down 30% from May’s $1,425 per metric ton. Green Markets analyst Alexis Maxwell cites demand destruction … Continue reading “Ammonia and Urea Fertilizer Prices Hit Exhaustion and Collapse 30%”

Drought Pushes California Rice Acreage to 39-Year Low

The USDA forecast that Californian rice plantings will fall to just 348,000 acres in 2022, representing a steep decline from 407,000 acres planted last year and 517,000 acres in 2020. California’s rice acreage will be the lowest it’s been since the 1983-84 growing season.  Drought-related water restrictions continue to hamper agriculture in the state. Drought impact on US Rice Shasta Lake has hit critical low water levels which is prompting significant restrictions in federal Central Valley Project water, which are expected to idle nearly 400,000 acres … Continue reading “Drought Pushes California Rice Acreage to 39-Year Low”

Corn Prices Remain Underpinned by U.S. Planting Delays and Ukraine Grain Unavailable for Export

Corn prices followed wheat prices lower Friday, futures prices fell 0.5%, primarily on planting pressure coupled with grain traders squaring positions ahead of the weekend. Corn prices remain underpinned possible U.S. planting delays and Ukraine grain unavailable for export. Ukraine’s spring plantings are now 98% complete and will drop 25% from a year ago due to the ongoing Russian invasion, per the country’s agriculture ministry. That includes 10.304 million acres of corn. Corn Futures Highlights Corn dipped 0.3% for the … Continue reading “Corn Prices Remain Underpinned by U.S. Planting Delays and Ukraine Grain Unavailable for Export”