Dairy prices were up for the first half of the year. The second half began with prices down because of low demand and low volume. Butter prices dropped by about 30 percent. U.S. domestic butter prices are currently undervalued. More details of stock availability will be captured in July’s cold storage report. 

Oct-24 world sugar futures rallied at the end of last week, reaching fresh three-month highs midweek, with #11 raw at 20.61 cents and #5 white at $577.30; both contracts were trading lower Friday. Sep-24 #16 domestic raw sugar had pulled back to just above 38.10 cents in Friday’s trading. The dollar index was trading at a one-month low, tracking its lower Bollinger Band; light crude was above $84.00, near its highest levels since mid-April.

Total export commitments for old-crop corn were 53.7 MMT (2.115 billion bushels), or 98.4 percent of USDA’s current forecast for 2023/24. This is a slightly higher-than-average share with two months to go in the season, and USDA may increase the projection in the July WASDE. 

Next week’s WASDE should reflect higher 2024/25 corn acreage (repeating the number from the June acreage report), but expectations are for a decline in yield, which may offset the increase in planted area.

The choice of feedstock for biodiesel and renewable fuels has been influenced by pricing. Soybean oil initially began as the preferred feedstock, but later, waste oils and other oilseeds brought in more options at lower prices, incentivizing buyers to pivot. With crude oil prices picking up, the demand for soybean oil has been reported to have increased from April to June, gradually taking back its major share in the feedstock market. 

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.