Weak dollar helping boost commodity prices

This past week’s Fed meeting and comments from Chairman Powell hinted at continued low-interest rates and a dovish stance to help the economy regain its footing in the current COVID-19 environment. Historically low-interest rates have already made an impact on the economy via a [...]

FAO’s Food Price Index at 17-month lows

FAO reports that its Food Price Index (FPI) fell in May for the fourth consecutive month, bringing the Index to its lowest level since December 2018, a 17-month low. Adjusted for inflation, May’s FPI fell 2 percent from April and was down 6 percent [...]

Technical bull trap in the making for cocoa?

After finding a market bottom in Q1 at $2,200 per MT, cocoa futures have been consolidating; a double bottom held, and prices rose by 10 percent. Although the fundamentals have been less inspiring with lackluster Q1 grind results, the market looks technically vulnerable to [...]

Dollar’s rise during stay-at-home orders

Given its spread across borders, the COVID-19 global pandemic could be described as an equalizing force, at least from an economic perspective. Yet, considering its influence on foreign exchange rates, the pandemic’s economic impact has not been shared equally. The U.S. dollar index, a [...]

FAO Food Price Index down for a second month

FAO’s Food Price Index for March 2020 fell 4 percent from February (adjusted for inflation). The Price Index for March was still up 2.7 percent YOY, though that is the lowest monthly YOY increase in seven months. For 2020 to date, the Food Price [...]

COVID-19 hits U.S. meat & dairy sectors

The nation’s massive effort to contain the spread of the coronavirus has led to a precipitous drop in consumption in the food service, restaurant, and hotel sectors while boosting at-home consumption, all of which is disrupting traditional market channels. As people adjust to stay-at-home [...]

Will COVID-19 decrease sugar consumption?

The COVID-19 pandemic is likely to pressure overall sugar use in countries and regions that have set self-isolation measures, curfews, and lockdowns. Sugar trader Czarnikow cut its estimate for global sugar consumption by nearly 2 MMT on Monday. Demand reductions of as much as 5 percent were suggested for China, Germany, France, Italy, and South Korea. Overall consumption [...]

Mixed moves in February for Food Price Indexes

For February, FAO is reporting its overall Food Price Index (inflation adjusted) down 1.0 percent from January 2020, though still up 8.1 percent from February 2019. Year on year, the individual subindexes are up by high single digits or higher. The one exception is [...]

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