Porto Alegre, September 21, 2020 – Still amid\nthe pandemic, discreet job recovery, and doubts about the pace of recovery in\nthe global economy, some commodities are standing out in the international context.\nSugar, coffee, and cotton were the first commodities to recover prices with a\nfinancial flow associated with some fundamental factor. Then, soybeans gained\nmomentum based on a global demand concentrated on the U.S. product, which is\nfavorable to prices on the CBOT. Wheat begins to try to recover prices. Corn\nhas been the commodity for which bullish arguments have not yet been\nconsolidated, mainly because there is still a harvest of 378 million tons\nahead. China continues as the hypothesis for bullish hope, with bets on massive\npurchases for next year. The fact is that world market prices are rising, while\nthere is a large crop to be reaped in the United States.<\/p>\n\n\n\n
The 2020 U.S. crop was\nplanted in a perfect window: planting in May, a good initial development, a\npollination period without serious events, and an end of a cycle with lower rainfall\nin points of the Midwest such as Iowa and western Illinois. Iowa was the state\nthat brought the big surprise of the year, with the storm that occurred in\nAugust, for which the USDA already brought its correction in the September\nreport. This situation is different for soybeans, which are defined in August\nand early September, and the end of the crop cycle may have been affected by\nthe drought in Iowa.<\/p>\n\n\n\n
Thus, losses for corn are\nalready priced on the CBOT. The correction of production from 388 to 378\nmillion tons, and the fall in stocks from 70 to 63.4 million tons are the\nadjustments presented by USDA. Any future surprises regarding demand? Could the\noutbreak of African swine fever in Germany leverage the U.S. pig farming and\nbring more future demand? All chances are possible on the eve of the harvest of\na big crop in the U.S. Midwest. One of the variables being worked on is a small\ndecline in Ukrainian production and some retraction in the country\u2019s export\nflow, which affects the supply to Europe and the Middle East. Ukraine prices were\nat USD 151\/ton FOB in August and now hit USD 175 in September. The flow\nof goods distorted by the pandemic may also be collaborating.<\/p>\n\n\n\n
Ag\u00eancia SAFRAS Latam<\/p>\n\n\n\n
Copyright\n2020 – Grupo CMA<\/p>\n","protected":false},"excerpt":{"rendered":"
Porto Alegre, September 21, 2020 – Still amid the pandemic, discreet job recovery, and doubts about the pace of recovery in the global economy, some commodities are standing out in the international context. Sugar, coffee, and cotton were the first commodities to recover prices with a financial flow associated with some fundamental factor. Then, […]<\/p>\n","protected":false},"author":5,"featured_media":9117,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[],"commodity":[],"class_list":["post-19384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-highlights-en"],"acf":[],"yoast_head":"\n