News about grocery products
The world wheat market has fully entered the “weather market” phase when the weather conditions in the main grain-producing countries begin to exert a decisive influence on prices.
In the past period, the price of cocoa beans continued to move in a falling trend as a result of the active supply to the market of the new season and growth stocks. In addition, the global cocoa market balance in the season 2016-2017 was revised upwards due to an excess of declining processing of cocoa beans in the world. Additional pressure on prices exerted fluctuations of the currency pair USD - Pound Sterling.
World processing in Q4 2016 decreased in Europe by 0.9% in Q4 2015 due to a sharp decline of 10.1% in Germany due to the cessation of production and the Euromar bankruptcy. Processing in North America also showed a decline of 1.1%, only in Asia it increased by 16.9% due to the growth in Malaysia.
Everyone knows that corn is the main crop in the United States. However, this year, farmers in many states are going to plant most of their fields with soy. This is due to the fact that soybean prices rose by almost 10% since 2016, and its crop expenses decreased. US farmers can boast of a special technology that enables the production of maximum yield at each acre.
Reduction in soybean oil export in December
According to experts of Oil World, on the results of December 2016 shipments of soybean oil from four key exporting countries (United States, Argentina, Brazil, and Paraguay) increased to 758 compared to 672 kt in the same period a year earlier.
In two years, the price for pods of vanilla grew more than three times due to the deficit. Businesses are looking for its natural replacement
The pace of growth in the value of contracts for sugar reached a maximum of seven years that is since 2009, leading to a rise in sugar prices worldwide. So, for the 2016 sugar futures price rose by 28%, this was the best indicator in the index among agricultural commodities in the Bloomberg Commodity Index. The reason for price rise at the world sugar market was the drought in India, provoked by the natural phenomenon El Niño (fluctuation in temperature of the water surface of the Pacific Ocean near the equator)
In the past two months, the grain markets were growing up in response to the expiration of the December contracts and the weakening of the US dollar, as well as on the output of the first USDA report on upcoming crops of US farmers in the 2017-2018 season. Farmers have reported a sharp reduction in winter wheat plantings to 32.4 million acres (-10.4% for the season 2016-2017), as well as on the planned common wheat crops in the area of 45.68 million acres versus 50.2 million acres planted in the 2016-2017 season. Crops of corn in the season 2017-2018 in the United States are estimated at 90.49 million acres, which is 3.7% lower than in the 2016-2017 season. The report provoked a sharp rise in grain prices, but as time passed USDA reported that in collecting data, there are significant gaps that may mean insufficient full coverage of farmers and at the beginning of the season 2017-2018 causing a material adjustment of the crops data upwards.