Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
The end of the South American monsoon has come earlier than average this year due to La Niña. The drier finish on the Safrinha crops will limit their yield potential.
Indonesia’s palm oil export ban has re-ignited the discussion of using cooking oils to make biodiesel.
Mato Grosso, Brazil’s top safrinha corn producer, is facing its driest April in 17 years, according to weather service EarthDaily Agro.
Ukrainian farmers in the southern region of Zaporizhzhia are determined to get their fields planted this spring.
Part of Brazil’s safrinha corn facing dryness concerns
Global food and fuel price shocks linked to the Russia/Ukraine war are likely to last until at least the end of 2024 and raise the risk of stagflation, the World Bank said in its latest Commodities Market Outlook report.
Price discovery suggests price will go high enough until demand is curbed sufficiently so we will not run out of stocks, but someone(s) might have to use less.
World Weather Inc. predicts the Midwest will see a mix of rain and sunshine during the next two weeks.
CME Group announced some price limits for grains and oilseeds would be reset starting May 1 for the trade date of May 2, 2022.
30 day outlooks for corn, soybeans, wheat and cotton.
The weak yen is one reason prices are rising in Japan, with consumer price inflation expected to approach the central bank’s longstanding 2% target in the next month or two.
This week corn prices topped $8 per bushel and soybean prices topped $17 per bushel. With slow planting progress, these prices could be trying to attract or commit acres to certain crops.
Cattle on Feed Report: Placements top expectations
In response to market prices, oil refiners are planning to increase jet fuel and diesel production instead of gasoline this summer.
For total grains, IGC cut production by 12 MMT, trade by 9 MMT and carryout stocks by 26 MMT from its 2021-22 estimate.
Higher crop prices have supported farmers and the agricultural sector. However, there are some challenges. . .
Vegetable oil buyers will likely switch some purchases back to palm oil as its discount is widening compared to other vegetable oils.
High winds, hot temps could stress Plains crops, livestock
Trade disruptions in energy, fertilizer and grains are inevitable. In fact, effects are likely to last for years, possibly even decades.
Chinese consumers are switching from pork to seafood for their protein needs, according to Bu Rui Ke, a research consultancy focused on agricultural commodities and publicly listed agricultural and food firms.
A group of 45 senators and 154 House members have filed an amicus brief with the U.S. Supreme Court calling for it to reverse a lower court ruling on Waters of the US (WOTUS) under the Clean Water Act (CWA).
Dry central Brazil conditions raise concern
A rising tide lifts all boats, and that might be what’s happening in the grain and oilseed markets. This week kicked off with another big rally in prices.
Goldman Sachs Group Inc and JPMorgan Chase & Co commodity trading risk has increased, according to the companies’ first-quarter earnings disclosures.
Despite concerns that sanctions would limit Russian fertilizer shipments to Brazil, shipping data shows fertilizer is still being shipped, Reuters reported.
CF Industries is warning customers that fertilizer shipments might be delayed or may not reach farmers after Union Pacific (UP) railroad mandated certain shippers to reduce the volume of private cars on its railroad.
USDA’s attaché in Brazil is expecting farmers to plant 42.5 million hectares (ha) in 2022-23. . .