DRY COMMODITY Trends

Dry Commodity Trends - April 12, 2024

Sugar

• Offered price levels for the balance of calendar year 2024 remain mostly steady, with little trading reported over the past week, according to analysts, who report that domestic sugar beet planting is now underway
• The USDA rated the Louisiana cane crop at 66% good-to-excellent, down from 77% the prior week
• The USDA lowered its 2023/2024 beet production estimate on its March supply/demand report, citing warmer than normal weather that contributed to lower overall sucrose content in the beet piles
• The USDA estimates 2023/2024 sugar imports from Mexico at 666,000 short tons, raw value, down 133,000 tons, or 17%, from February, and down 490,000 tons, or 42%, from 2023/2024
• The U.S. Army Corps of Engineers said it expects to open a new channel to the Port of Baltimore by the end of April, freeing up commercial shipping blocked by a collapsed bridge, and then restore port access to full capacity by the end of May
• Spot global and domestic sugar futures contracts both moved slightly lower over the past week

Dry Beans

• Dry bean end users are beginning to inquire about Q3 coverage, according to early April updates from cash dealers. They report that product availability is “adequate” for most varieties as the planting season begins
• USDA weekly cash prices are still below last year’s levels for the spot position on several dry bean varieties

Rice

• New bookings of milled and industrial rice have maintained a steady pace over the past week, according to cash traders.
• The USDA lowered its total rice ending stocks estimate to 41.5 million cwt. in its March supply/demand report, down from 42.5 million in its February report
• The spot domestic rice futures contract moved higher this week, following a decline of 16% since early February

FLOUR

• The wheat markets were higher through Wednesday of this week vs. the prior week
• Historically, the wheat markets have been steady to higher during April and May
• The recent weakness in corn prices has provided some headwinds for wheat, as both markets compete in feed channels, according to analysts
• The winter wheat crop is coming out of dormancy in the Southern regions under mostly favorable weather conditions, with the highest overall USDA crop ratings in four years, according to analysts
• Russian and EU wheat prices have risen over the past month, lending some underlying support to the U.S. markets, according to analysts
• Domestic winter wheat basis offers were slightly lower this week, and are at a slight discount to values posted last year at this time