Weekly crude oil stocks hit a major low, a great decline since August. The EIA data also showed that the same week, the biggest decline in crude oil production was realized since September 2021. This hit may keep production down for some weeks, according to energy sources.
Crude oil futures are seeing their highest levels since November, supporting January rallies for sugar futures. This last week, Mar-24 #11 world raw reached seven-week highs but was trading back below 24 cents Friday. Mar-24 #5 world white fell back below $680 at the end of the week. After almost reaching 42 cents midweek, Mar-24 #16 domestic raw fell to test retracement support near 40.80 cents Thursday and Friday. The dollar index consolidated at one-month highs in the second half of January.
Cocoa continues to have very bullish prices and hit highs around $4,800 per MT during the week. Technical indicators of the market show that the commodity is being over bought. Concerns remain as to whether this situation is sustainable and when conditions will be back to normal in producing countries.
January’s severe weather across the Midwest took a toll on ethanol production, which dropped to just 818,000 barrels per day for the week of Jan. 19, but manufacturers usually ramp back up very quickly after such declines.
USDA released estimates for corn use during Sep-Nov 2023, and use was higher across all categories compared to Sep-Nov 2022 but slightly lower than in Q1 2021/22 largely due to a 1 percent decline in feed demand. However, feed use is likely to be stronger during spring 2024 vs. 2022 given this year’s lower corn pricing.
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.
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.