Commodities Week in Review: March 29 to April 2 Agriculture  The biggest story this week in the agricultural commodities market was the US Department of Agriculture’s (USDA) 2021 Prospective Plantings report that sent prices soaring. The USDA stated the domestic farmers will plant lower soybean and corn acreage than what market analysts had initially anticipated. This triggered a massive rally on Wednesday, hitting a daily limit for soybeans, corn, and wheat. The report does maintain a history of sending jolts throughout the grains market, so the spike may not be too surprising. But the rally could not be sustained as investors took some profits early. Cocoa  Friday Settlement: -$3.00, or 0.13%, to $2,392.00 per metric ton Weekly Performance: -2.72% YTD Performance: -7.89% Coffee  Friday Settlement: -$0.085, or 0.69%, to … [Read More...]

Spilling a Cup of Cocoa   Cocoa futures ended the trading week below $2,400 per metric ton as demand concerns weighed on the agricultural commodity. Contracts are settling near their lowest levels since the beginning of November.   Cocoa’s direction is being mostly driven by the resurgence of coronavirus infections across Europe, a major market for the crop. As COVID-19 cases skyrocket, many jurisdictions are instituting new lockdowns and measures that could affect consumption. The coronavirus vaccine rollout has also endured hiccups along the way, leading to speculation that other waves could intensify throughout the continent.   That said, market analysts say the downward trend in cocoa could benefit consumers since it would lower input for a wide variety of companies that specialize in the crop, such as Hershey. … [Read More...]