Weekly Review Of Agriculture Markets - Wednesday, June 17

Weekly US Cotton Futures:

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Frozen Concentrated Orange Juice and Citrus

FCOJ was lower with much of the selling coming on Friday. The selling came for chart based reasons as futures were unable to take out recent highs even though USDA released reduced production estimates for US production. Florida production is now estimated at less than 68 million boxes. Support is coming from the continued effects of the Coronavirus that are keeping people at home and drinking Orange Juice. Demand from grocery stores has remained strong in response to increased consumer demand. Inventories in cold storage remain solid so there will be FCOJ to meet the demand. There is increasing concern about the food-service demand not improving even with the partial opening of the states. The weather in Florida is currently good for the crops. Southern areas are cooler and have seen more frequent showers. The tree condition is called good. The Valencia harvest is in full swing. Brazil has been dry and irrigation has been used.

Weekly FCOJ Futures:

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Futures were lower in both New York and London as the Brazil harvest is underway and starting to expand. Ideas are that production will be very strong this year as it is one year for the trees. The strong production ideas are coming despite hot and dry weather seen in the country at flowering time. Vietnam also had hot and dry weather at flowering time and production ideas there are less than original expectations of a bumper crop. The demand from coffee shops and other food-service operations is improving but is still at very low levels. Consumers are still drinking coffee at home, but many smaller roasters are actively trying to unload green coffee already bought a there are only a few outlets for sales at this time. The logistics of moving Coffee from Central and South America remain difficult. Producers have had trouble getting workers to pick the cherries and mills and processors have had trouble getting workers to staff the plants. Shipping logistics have improved somewhat, but many are still having trouble getting the Coffee to ports to move to consumer nations. Indonesian producers are more active sellers.

Weekly New York Arabica Coffee Futures:

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Weekly London Robusta Coffee Futures:

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Sugar:  New York and London closed lower in part on weaker petroleum prices. The market acts as if there is a short supply of White Sugar available. The Brazil mills are trying to cover the lack of White Sugar in the market but might switch back to producing ethanol soon if prices continue to improve for the ethanol. Brazil mills are currently producing about 48% Sugar from the cane crush, from about 33% a year ago. The overall crash rate is below the year-ago levels. Reports indicate that little is on offer from India in part due to logistical and harvest problems caused by the Coronavirus. India is thought to have a very big crop of Sugarcane this year but getting it into Sugar and into export position has become extremely difficult. Thailand might also have less this year due to reduced planted area and erratic rains during the monsoon season. There are reduced flows from rivers from China as well.

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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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