Food Price Index finally ticks higher

FAO reported its Food Price Index appreciated by just 0.2 percent YOY in June, the first monthly YOY increase in 21 months. (Note: These figures are adjusted for inflation.) The increase comes courtesy of gains in three of the five subindexes: The Meat, Cereals, [...]

Dairy prices show significant sign of weakness in 2019

Modest bearish moves in dairy auction prices two weeks ago (May 21) gave way to more substantial downward movement in prices this past week. Fonterra’s Global Dairy Trade platform registered a 3.4 percent decrease in its dairy product price index this past week on [...]

U.S. net agricultural export totals adjusted downward

Last Thursday, May 30, USDA released its quarterly Outlook for U.S. Agricultural Trade, forecasting import and export value totals for the current year. USDA decreased its initial export value forecast by $4.5 billion, from $141.5 billion down to $137 billion. Lower forecasted export shipments [...]

Dairy bull market pauses to catch its breath

Increasing tension over trade in the first half of May led dairy manufacturers to begin selling off inventories. Many cooperatives had been building inventories of various products in anticipation that a trade deal between the U.S. and China was close, but that anticipation has given way to concern as import duties of up to 25 percent remain in place on various [...]

FAO Sugar Price Index finally showing gains?

After falling 2.8 percent in 2018, FAO’s Food Price Index (FFPI) is down 2.7 percent YOY for the first four months of 2019. (The index, adjusted for inflation, uses as baseline food price data from 2002 through 2004.) Looking at monthly data, April 2019 [...]

African swine fever: Hogs, China, & trade

One of the hottest current topics in agricultural markets is African swine fever, a virus ravaging the Chinese hog industry. Market concerns abound, from whether the virus can spread to other regions globally (such as the U.S.) to its potential impact on pork production [...]

Declining dairy herd finally translates into fall in milk production

Total U.S. dairy herd has been declining for the past 16 months as culling reduced the total number of cows nationwide. However, total milk output has remained steady on gains in production thanks to improved yields. The April report finally showed a nominal decrease [...]

Demand for nutritious beverages on the rise in China

In a recent report, USDA found urban Chinese consumers are eating and drinking healthier than in previous years, emphasizing “eating well” over “eating full.” This mindset, along with a need for convenient nutrition, has led to growth in China’s beverage industry. In fact, profit [...]