The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.25% at its May 2023 meeting. Markets had expected a smaller 25 bps increase. Policymakers cited concerns regarding the significant depreciation of the rand and the mounting pressures of inflation as key drivers behind the rate adjustment. The SARB also revised its inflation forecasts, with inflation for 2023 now projected to average 6.2%, up from the previous estimate of 6.0%. The move triggered … Continue reading “South Africa Raises Interest Rates 50bps, Rand Falls to All Time Low”
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”
South Africa Raises Interest Rates 50bps, Revises Inflation Higher
The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 50 bps to 7.75% at its March 2023 meeting. Markets had expected a smaller 25 bps increase. The move triggered a surge in the rand , which extended earlier gains to rise nearly 2% against the dollar. It was the 9th consecutive rate hike since policy normalization started in November 2021, bringing borrowing costs to the highest since May 2009. Policymakers revised significantly upward headline inflation … Continue reading “South Africa Raises Interest Rates 50bps, Revises Inflation Higher”
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”
South African Rand Plunges on President Cyril Ramaphosa Farmgate Scandal Rumors
The South African rand fell over 4% against the dollar to around 17.95 before paring losses to the lowest since November 4th, after “farmgate” rumors spread that President Cyril Ramaphosa was considering resigning after a panel report found preliminary evidence, he may have committed serious misconduct. Ramaphosa was due to address the nation on Thursday, Ramaphosa’s spokesman Vincent Magwenya said: “An announcement is imminent. … I can’t confirm the date and time, we will advise.” in response to Reuters. Farmgate … Continue reading “South African Rand Plunges on President Cyril Ramaphosa Farmgate Scandal Rumors”
South Africa Raises Interest Rates 75bps to Tame Inflation
The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 75 bps to 7% at its November 2022 meeting, as widely expected. Prime is now at 10.5%. This was the 7th consecutive rate hike as the SARB tries to tame inflation expectations more firmly around the mid-point of the target band and achieve the inflation target in 2024. South Africa’s inflation rate unexpectedly rose to 7.6% in October from 7.5% in September. The decision was not … Continue reading “South Africa Raises Interest Rates 75bps to Tame Inflation”
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”