We’ve seen corn pricing (futures and cash) tumble since June as the market adjusts to this season’s supply scenario. USDA will soon begin regular adjustments to the 2023/24 demand forecast—keep an eye on feed because the rise in livestock and poultry numbers, in addition to affordable corn, could equal higher use. Use for ethanol looks good as well.

In the last week, sugar futures traded sideways above late December lows. Nearby #11 sugar’s modest bullish bias pulled it above 21.00 cents but may find resistance near 21.50, and benchmark #16 was holding near 39.00 cents. 

The final cocoa bean arrivals from Ivory Coast were released last week, closing 2023 and bringing cumulative exports down by some thousands of MT from the preceding year. In his recent IQ post, our consultant, Jeff Rasinski, goes into further detail and shares his thoughts on the main factors influencing the recent price hikes in the market: the pace of cocoa beans arrivals, the deficit volume to be made up for, and farmgate prices in Ivory Coast.

In his IQ Daily technical outlook, our Director of Risk Management, Shawn Bingham, shares his thoughts on the key highlights to look forward to in the upcoming Federal Open Market Committee (FOMC) meeting, held from Jan. 30 to Jan. 31. A key thing to look out for is the FOMC members estimated forecast for the fed funds rate as compared to the markets. Shawn also shares which barometers are a better to watch for market rates. The FOMC minutes of December’s meeting were released yesterday, which could offer clues about future rate reductions. 

For biofuels, Shawn points out a sharp percentage change, out of the ordinary, in the use of soybean oil for biodiesel and renewable diesel. This change is not seasonal, yet the beginning of the fourth quarter of 2023 saw a change which has been sustained to now look like a trend. Waste grease is steadily becoming the cause of the reduction of the share of soybean oil as a feedstock for biofuel.

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.