Posted: November 9th, 2013 | Author: Rod Sherkin | Filed under: Food, USA | Tags: citrus greening, orange, orange florida, orange juice, orange juice future, orange juice price, orange juice supply | No Comments »
In its first Citrus report of the crop year that began Oct. 1, the USDA forecasts that Florida growers would reap 125 million 90-pound boxes of oranges. That would be the smallest harvest since 1989-1990, when a freeze hit the state’s groves.
Orange juice futures jumped the most in eight months after the U.S. government said that Florida’s crop, the world’s second-biggest, will shrink 6.4 percent to the smallest since 1990 after a crop disease damaged groves.
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Posted: November 6th, 2013 | Author: Rod Sherkin | Filed under: Brazil, Food | Tags: arabica brazil, arabica coffee, arabica colombia, arabica price, arabica supply, coffee, coffee supply | No Comments »
Building on the relentless selling of the past three weeks, benchmark December arabica coffee futures on ICE settled down 1.9 percent at $1.015 per lb, having earlier touched $1.010, the lowest close for the most actively traded contract since Sept. 14, 2006.
Prices for Arabica beans, the most widely grown variety of coffee, have tumbled 29% this year as a second bumper crop from top grower Brazil hit international markets. The latest drop is fueled by harvests from Central America and Colombia and expectations of another good crop in Brazil adding to already ample supplies.
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Posted: October 29th, 2013 | Author: Rod Sherkin | Filed under: Brazil, Food | Tags: arabica coffee, coffee, coffee future, coffee outlook, coffee price, coffee supply | No Comments »
Coffee futures capped the worst rout in more than four decades as wet weather signaled bigger crops than forecast in Brazil, the world’s largest grower. Brazil may collect a record crop in 2014 after “perfect” weather, Sao Paulo-based Somar Meteorologia said yesterday.
The Colombian Coffee Growers Federation estimates that farmers may reap the biggest harvest since 2007. Global production is set to exceed demand for a fourth straight season, according to the U.S. Department of Agriculture. The glut is helping to cut costs for Starbucks Corp. (SBUX) and Kraft Foods Group as coffee futures tumbled 26 percent in 2013.
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Posted: October 28th, 2013 | Author: Pascal Blanc | Filed under: Brazil, Commodities, Food | Tags: arabica, arabica price, coffee, coffee price, robusta, robusta price | No Comments »
Liffe January robusta coffee was up $7 or 0.4 percent at $1,586 a tonne in slim volume of 2,149 lots on Wednesday after earlier touching $1,572, the lowest level since September 2010, depressed by a bumper harvest in Vietnam, the top producer of the variety.
This is a typical example of the cyclical nature of commodity prices. After enjoying quite profitable coffee prices, including a historic peak in February 2011, the coffee-producing countries were encouraged to renew, expand and better maintain their plantations.
The results of the renovation programme of the past few years are coming through and are now visible everywhere, including East Africa. But it is especially impressive in Brazil, the world number one provider will have the best harvest for an intermediate year (47.5 million bags of 60 kg), and Vietnam, the leading producer, also expects a record production (27 to 29 million bags) of robusta coffee.
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Posted: October 8th, 2013 | Author: Pascal Blanc | Filed under: Agricultural, Commodities, Corn, Cotton, Food, Soybaens, USA | Tags: commodities, commodities market, US government shutdown | No Comments »
The US government shutdown is starting to disrupt commodity markets. Beyond its budget gridlock, the United States could default on its debt if no agreement is reached in Congress by Thursday of next week. This threat to the world’s largest economy has slightly brought down the oil market last week, but is not taken seriously by the commodity markets.
However, the paralysis of a large part of the US administration is already disrupting markets. Since last Tuesday, for example, the US Department of Agriculture has not published any report: no information on U.S. exports last Thursday, no statistics on U.S. agriculture production. It is also unlikely that next Friday, the monthly key report on global supply and demand for agriculture products will be available. But, this USDA report is the reference for the global markets and it can greatly influence global grain prices up or down at a key period, the harvest of corn and soybeans.
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Posted: October 8th, 2013 | Author: Rod Sherkin | Filed under: Agricultural, Food | Tags: canola, canola canada, canola futures, canola market, canola production | No Comments »
The Canadian government raised sharply its estimates for canola-seed production on Friday, sending prices in the futures market toward three-year lows. The canola seed is used to make cooking oil that in recent years has made big inroads among health-conscious consumers. It competes with Soybean Oil and Palm Oil.
Prices have tumbled 21% this year as investors and traders have anticipated the big influx of supplies from Canada, the world’s largest exporter and No. 2 grower of canola, after the European Union.
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Posted: October 8th, 2013 | Author: Rod Sherkin | Filed under: Food | Tags: cocoa, cocoa future, cocoa market, cocoa outlook, cocoa price, cocoa production | No Comments »
Cocoa reached a 23-month high in New York, extending the biggest gain since August, as rain threatens to hamper harvesting and supplies are set to trail demand according to the International Cocoa Organisation which forecasts a deficit in the next four years.
Cocoa for delivery in December advanced 0.7 percent to $2,719 a ton by 5:11 a.m. on ICE Futures U.S. in New York after touching $2,726, the highest since Nov. 8, 2011. Yesterday’s 3.4 percent climb was the biggest since Aug. 5. Cocoa for the same delivery month gained 0.6 percent to 1,757 pounds ($2,823) a ton on NYSE Liffe in London.
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Posted: October 4th, 2013 | Author: Rod Sherkin | Filed under: Food | Tags: sugar, sugar brazil, sugar future, sugar harvest, sugar price, sugar production | No Comments »
Raw-sugar futures are trading at six-month highs as rain delayed the harvest in the world’s biggest producer Brazil and fueled worries about supplies, on news from Unica, Brazil’s sugar industry association.
Futures surged 4.2% last week after Unica trimmed its forecast for the harvest in Brazil’s main sugar-producing region by 0.4% to 587 million metric tons this season.
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Posted: September 30th, 2013 | Author: Rod Sherkin | Filed under: Agricultural, Corn, Soybaens | Tags: Corn, corn future, corn price, soybean, soybean future, soybean price | No Comments »
Corn futures plunged to a three-year low after the U.S. Department of Agriculture boosted its inventory estimate by 25 percent.
Soybeans dropped the most in six months as supplies topped analyst estimates by 11 percent.
Corn futures dropped 2.8 percent to close at $4.415 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $4.4075, the lowest for a most-active contract since Sept. 1, 2010. Corn has tumbled 37 percent in 2013.
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Posted: September 23rd, 2013 | Author: Rod Sherkin | Filed under: Food | Tags: cocoa, cocoa bean, cocoa forecast, cocoa future, cocoa market, cocoa price, cocoa production | No Comments »
Cocoa prices are up 21% so far in the third quarter, outperforming broad commodity indexes. The cost of one kilogram of chocolate in the U.S. is expected to hit a record $12.25 this year, a 45% increase from 2007, according to Euromonitor International.
Prices are on the rise due to a shortage of cocoa beans, which are roasted and ground to make chocolate. Market experts estimate that supplies will fall short of demand this year for the first time since 2010 and dry weather is expected to hurt the next harvest in West Africa, where 70% of cocoa beans are produced.
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