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Despite a push higher Friday for crude oil, May-24 world sugar #11 and #5 sugar futures dipped strongly for the second day, looking to settle below their Bollinger Bands near eight-week lows. Domestic #16 May-24 sugar moved to a one-month low in the second half of the week, straddling psychological support near 41.00 cents. The dollar index is trading sideways in the short term, having failed to break its 20-day average at the end of the week.
Through mid-February, Brazil’s center-south 2023/24 sugar production totaled 42.16 MMT, up 26 percent YOY; the trade is looking at the new center-south harvest starting in April, with dry weather currently forecast bullish for world prices.
The U.S. produced 33.5 million barrels of ethanol in December, the second highest volume on record (after August 2018’s 33.8 million). Total production in 2023 was 371.9 million barrels, up 2 percent from 2022. Use by blenders and refiners was up 1 percent YOY. Ethanol yield per bushel of corn has been lower in 2023/24 compared to 2022/23, which could pave the way for USDA to increase projected corn use for ethanol in upcoming WASDE reports.
Manufacturers of biobased diesel fuels consumed a record 3.4 billion pounds of feedstock in December. Renewable diesel accounted for 47 percent of soybean oil feedstock use, 56 percent of canola oil, and 82 percent of corn oil.
Cocoa prices are currently influenced by supply tightness and changing demand. Grind is estimated to be down for 2023/24 as well as gross output YOY. Ivory Coast and Ghana arrival volumes are expected to reduce from earlier forecasts. Ivory Coast may be down by 30 percent YOY while Ghana may be 40 percent below the expected volume.
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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