With corn harvest complete, market attention is shifting from supply to demand. USDA raised exports a bit in the December WASDE, and we’ll see further demand adjustments in upcoming reports. As we showed in this month’s domestic corn overview, there are more cattle on feed this year vs. last, so that use category should be watched. Lower cash corn prices are benefiting feedlots and other corn users. 

This month’s roundup of tropical oil supply and demand data shows a dip in projected 2023/24 world consumption of palm oil, although USDA is still pegging use at over 78.1 MMT, up 5 percent year over year. Palm oil demand for biofuel may be reduced if crude oil prices remain at lower levels.  

Cocoa prices dropped briefly and bounced back, rallying during the week. West Africa’s estimated cocoa supply for the 2023/24 season is likely to shake the cocoa and chocolate industry. 

Nearby #11 world raw sugar moved to test support near 22.00 cents, reaching eight-month lows—despite a weaker dollar and short-term consolidation for crude oil. #5 world white and #16 domestic raw neared five-month lows above $605.00 and 39.50 cents, respectively. Through November, Brazil’s center-south output was up 24 percent YOY at 40.8 MMT of sugar. India’s mill industry is lobbying for an increase in the sugar floor price. In October, U.S. human use sugar deliveries were down 1.7 percent YOY. 

Energy prices have taken a sharp turn lower but remain highly volatile. EIA released its December Short Term Energy Outlook and motor gasoline stocks trending downwards. Slow global economic growth coupled with the decline in the U.S. dollar has influenced the export of U.S. soybean cake and meal. 

This report summarizes a small sampling of the information available on our IQ Ingredient Intelligence platform. Further insights, statistics, analysis, and pricing information for these commodities and others are available to IQ subscribers.   

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Source: 123rf.com
Posted by: Information Services
Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.