Key Ingredients in 2024 Webinar: Pricing in the New Year (Recorded Wednesday, January 31, 2024)
Last year provided the first bit of relief for battered procurement departments in the food industry as ingredient price inflation eased. Will 2024 continue this trend, or could production, supply chain dynamics, and eager consumers present some surprises? Hear our thoughts on what may be ahead in 2024!
The next WASDE report will be released on Feb. 8, and we may see USDA adjust grain and oilseed use estimates, now that we are about halfway through the corn and soybean marketing years. Current projections still feel close to the mark, though. However, South American corn and soybean production estimates may be due for further reductions.
The cocoa market is currently bullish with prices at $5,000 per MT. The price hikes were influenced by supply constraints in West African countries. Grind, on the other hand, is estimated to increase YOY. North American cocoa grind rose in Q4 2023 while the other regional grinds dropped.
After rallying in January, nearby #11 world raw sugar futures traded sideways this week, holding below 24.00 cents; Mar-24 #5 retraced lower to test support at its 20-day moving average. Most-active May-24 #16 sugar may end the week near 42.00 cents. Along with technical factors, some softness in crude oil pricing seems to have had a bearish influence on sugar futures.
The two largest producers of oil in the U.S. intend to take their business away from California due to favorable state regulations. Many other oil companies have been withdrawing gradually from California for the same reason. California, however, has goals of using 100 percent carbon-free sources for electricity by 2024, with the grid not near completion.
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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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.