Some soft commodities have rallied so far this year, with sugar prices this week trading at their highest price in 11 years and orange-juice futures touching...
Some commodities that are grown rather than mined, known as “softs” to traders, have rallied so far this year, with sugar prices this week trading at their highest price in 11 years and orange-juice futures touching their highest prices on record.
In recent years, Brazil has dealt with a La Niña weather pattern that reduced production of some of their main crops such as sugar, coffee, and soybeans at a time when demand for many of these commodities continues to increase, creating tight supplies, he said. While Russia and Ukraine are not major producers or consumers of sugar, coffee or cocoa, the war between the two nations has led to supply-chain disruptions and higher energy and fertilizer prices, said Nikita Pandey, research analyst at the Economist Intelligence Unit . “Prohibitively high fertilizer prices have disincentivised growers, which has contributed to losses of acreage this year,” and that will have an impact next year as well.
However, Bill Weatherburn, commodities economist at Capital Economics, wrote in a note Friday, that the supply picture for sugar should improve by the end of the year, so Capital Economics expects the global sugar market to see an overall surplus for the 2022 to 2023 and 2023 to 2024 seasons. In a report released Tuesday, the U.S. Department of Agriculture pegged the U.S. all-orange forecast for the 2022 to 2023 season at 2.57 million metric tons, or 62.25 million boxes.
Low coffee production this year and lower stocks will keep prices supported throughout the 2023 to 2024 period, said EIU’s Pandey. Next year, she expects the market to remain in deficit, with “firmer” demand and a decline in production leading to a rise in prices for Arabica and Robusta coffee beans.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why More Female Executives Don’t Play Golf—and Why That’s a ProblemFemale executives face all sorts of barriers when it comes to using one of the great networking tools for business: golf
Read more »
WTI Price Analysis: Soft US Inflation infuses adrenaline rush into oil prices, $90.00 eyedWest Texas Intermediate (WTI), futures on NYMEX, have turned sideways after printing a fresh four-month high at $83.48 on Wednesday. The oil price rec
Read more »
Dollar soft as cooling US inflation brings end in sight for Fed rate hikesThe dollar remained subdued in Asian trade on Thursday after weakening overnight as cooler-than-anticipated U.S. inflation data stoked expectations that the Federal Reserve's monetary tightening will end next month with one last interest rate hike.
Read more »
Morning Bid: Soft landing hopes fuel that Friday feelingA look at the day ahead in Asian markets from Jamie McGeever.
Read more »
Marketmind: Banks to test soft landing thesisA look at the day ahead in U.S. and global markets from Mike Dolan
Read more »
What Happens When You’ve Gotten Filler for Years — and Then Stop?If you’ve been getting filler religiously for years, what happens when you stop will hinge on one critical factor: your average dose at each appointment.
Read more »