Tues 30th August 2016
The rally in sugar prices, already close to four-year highs, has further to run, spurred by the fall in world inventories to "critically low" levels, the International Sugar Organization said, despite foreseeing a rise in output.
The intergovernmental group, in its first forecast for the world sugar production deficit in 2016-17, pegged it at 7.05m tonnes, one of the highest shortfalls on record.
Following on from a 5.74m-tonne deficit in 2015-16, on an October-to-September basis, the shortfall leaves the world looking at a tumble in stocks below 75m tonnes by the end of next season.
Thurs 25th August 2016
The surge in European Union milk production, blamed by many commentators for the extent of the world milk price downturn, is over, said Fonterra and Rabobank, which flagged support for values from Chinese dryness too.
"Milk production in the EU is now in decline," said John Wilson, the chairman of New Zealand-based Fonterra, the world's top milk exporter, which monitors closely the global industry.
Rabobank estimated that milk output in the EU, the top producer, had fallen by 1.5% in June, a month for which official data are due imminently.
The European Commission's latest data, for May, show a year-on-year increase of 0.8% in output, the slowest since the removal at the end of March 2015 of production quotas, which sent volumes soaring.
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CornCorn futures are trading mostly 3 cents higher this morning. Prices closed higher on Friday despite USDA projecting US average yield at 175.1 bpa and a record crop at 15.153 billion bushels. Ears per acre in the objective yield plots were only the 4th highest on record, but USDA used a new all-time high for grain weight per ear. The projected new crop ending stocks are now 2.409 billion for 2016/17. World ending stocks rose because of the hike in the US, to a projected 220.81 MMT from 208.4 MMT last month. The weekly Commitment of Traders report showed managed money adding another 32,645 contracts to their net short position during the week ending Tuesday, August 9.
Can´t wait shortcovering rally :-)
Posted: 09 Aug 2016 04:45 PM PDT
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