Weekly Ag Markets Update - Tuesday, Aug. 18

Weekly Malaysian Palm Oil Futures

Weekly Chicago Soybean Oil Futures

Weekly Canola Futures

Cotton: Cotton closed a little higher for the week and in response to the USDA production reports that showed less production this year. West Texas weather remains detrimental for crop development as the region has been very dry and hot. The hot and dry weather extends north into Oklahoma and western Kansas. Export demand for US Cotton has been poor for the last few weeks. Export demand is the primary demand for US Cotton so poor weekly sales means weak overall demand. The retail demand has been slow to develop as many consumers got hurt economically due to stay at home orders during the height of the pandemic and have little disposable funds to spend on clothes. Demand will slowly improve but the industry should have plenty of supplies to work with in the short term. The US weather situation is mixed, with good rains noted in the Southeast and good conditions in the Midsouth. However, it has been very hot and dry in West Texas and farther to the north and crops there are suffering.

Weekly US Cotton Futures

Frozen Concentrated Orange Juice and Citrus: FCOJ was higher for the week but the weekly charts still show down trends. The Coronavirus is still around and is still promoting the consumption of FCOJ at home. But, restaurant and food service demand has been much less as no one is really dining out. Florida production prospects for the new crop were hurt by an extended flowering period, but the weather is good now with frequent showers to promote good tree health and fruit formation. Import demand to the US should be minimal as US prices remain below those of Europe. Brazil has been too dry and irrigation is being used.

Weekly FCOJ Futures

Coffee: Futures were lower in New York and higher in London. Chart trends remain up for at least the short term. Demand has generally been weaker. The US CPI indicated that inflation could be developing. Vietnam was dry during flowering time and is dry again. Production ideas are lower. Vietnam is also reported to be having problems with shipping due to lockdowns from the Coronavirus. Demand overall remains down with the US still locking down due to the Coronavirus resurgence in some states. The demand from coffee shops and other food service operations is still at very low levels. Consumers are still drinking Coffee at home and the return of the Coronavirus outbreak will keep things that way. Reports indicate that consumers at home are consuming blends with more Robusta and less Arabica. Europe is emerging from lockdowns, but the Coronavirus has ramped up as the lockdowns are eased and that bas hurt overall economic activity there. The Brazil harvest is active but shipping and collection have become very difficult due to the widespread outbreak of the Coronavirus there. Even so, the pickers are showing up for work and ports are operating normally. Ideas are that production will be very strong this year as it is the on year for the trees. The strong production ideas are coming despite hot and dry weather seen in the country at flowering time.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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