DRY COMMODITY Trends

Dry Commodity Trends - July 26, 2024

Sugar

• Offered price levels for the balance of calendar year 2024 remain unchanged, with little new trading volume reported by vendors this week
• Two sugar beet processors are currently withdrawn from the new crop market, according to cash dealers
• The USDA’s weekly crop ratings for both beet and cane sugar were mostly unchanged from the prior week, and remain in mostly good condition at this stage
• The USDA raised its 2024/2025 domestic sugar production estimate in its July supply/demand report, putting the ending stocks-to-use ratio back up to 13.5%
• Both domestic and global spot sugar futures revisited their 2024 lows this week, due to better crop prospects, according to analysts

Dry Beans

• Dry bean end users have completed Q3 coverage, and continue to seek offers for Q4, according to this week’s updates from cash dealers, who report that early crop conditions remain mostly favorable
• The USDA reported that 2024 all-dry bean planted acres are up 15.2% compared to last year
• The USDA reports that U.S. dry bean exports to Mexico are up 169% year-over-year, due to drought conditions there
• USDA weekly cash prices are below last year’s levels for the spot position on several dry bean varieties, but are up compared to last week

Rice

• Bookings of milled and industrial rice are now mostly complete for coverage through Q4, according to cash traders
• The USDA raised its 2024/2025 all-rice supply estimate in its July supply/demand report by 2.5 million cwt., to 307 million cwt., due to increased production and imports
• At this week’s low, the November rice futures contract had fallen 9% from the June high

FLOUR

• The wheat markets were slightly higher through Wednesday of this week vs. the prior week
• At last week’s low, the spot Kansas City wheat futures had fallen 28% from the May high
• Russian wheat prices are down from their May high, but have started to stabilize following a large purchase from Egypt’s General Authority for Supply Commodities this week, as reported by Reuters
• The Wheat Quality Council reports that their annual wheat crop tour is scheduled to take place this week
• The U.S. winter wheat harvest is now 76% complete, up from 71% last week, and above the 72% posted last year at this time
• The USDA reported the spring wheat crop at 77% good-to-excellent this week, unchanged from 77% last week, and well above the 49% rating at this time last year
• Domestic winter wheat basis offers have remained mostly steady over the last month, and remain in line with levels from last year at this time, according to analysts