Author: Michael Ferrari, PhD
VP, Applied Technology & Research
In a Bloomberg report this morning, the current food supply and price situation was aptly described as ‘Kitchen Table Economics.’ With uncertainty over the direction of food costs, underscored by a recent UN statement showing prices at new highs, where do we go from here?
In any given year, [...]
Author: Michael Ferrari, PhD
VP, Applied Technology & Research
The reports that Weather Trends has been issuing regarding the global sugar supply situation has, for several months, been calling for a gradual improvement to the global balance sheet; however, we have always been less optimistic than most consensus estimates regarding the shift to surplus status. Most agencies [...]
Overnight activity has the grain/oilseed complex opening on a lower note, with wheat leading the way. Northeast China has received rainfall over the last few days, bringing some relief to the provinces that have been affected by the recent drought in the region (particularly Shandong and Henan provinces). While the rains have eased some of [...]
Author: Michael Ferrari, PhD
VP, Applied Technology & Research
Dryness across eastern China in recent months is likely to have an acute effect on the current winter wheat crop, and there are also anticipated effects on the coming spring wheat & corn plantings. The above map from the Foreign Agriculture Service shows that the drought is most [...]
Author: Michael Ferrari, PhD
VP, Applied Technology & Research
‘Parasitic Trading’ being blamed
(photo from the FT)
In a letter to the InterContinental Exchange (ICE), the sharp rise in raw sugar prices to 30 year highs and related volatility is being blamed on ‘parasitic’ algo traders, according to the World Sugar Committee. The chart below (from ino.com) [...]
Author: Michael Ferrari, PhD
VP, Applied Technology & Research
The recent proliferation of articles discussing a deficit in the global sugar balance should not be news. The market awareness of a potential supply shortage that has given another constructive surge to the raw sugar market is most recently being connected to Tropical Cyclone Yasi, which made landfall [...]
