THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
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ISTANBUL…
Commodity markets are struggling to find direction in the third week of the new year, as dovish pricing, particularly regarding central banks, continues to lose strength, and after having selling pressure in the first two weeks, the markets took a mixed course last week.
Increasing demand for the dollar, geopolitical risks, and concerns over drought, production, and supply are causing selling pressure.
Agricultural group on mixed course
Last week, wheat prices on the Chicago Mercantile Exchange fell 0.5%, corn by 0.3%, soybeans by 0.8% and rice by 0.1%.
Cocoa reached a record-high price of $4,607 per ton.
Coffee prices rose in response to forecasts of continued dry weather in Brazil, which is expected to reduce coffee yields.
Vietnam’s decline in coffee exports last year also contributed to ongoing supply concerns.
There are many factors causing supply constraints in sugar as well, with news that India would maintain its ban on sugar exports and concerns that the El Nino weather phenomenon could have a negative impact on production, resulting in a sharp increase in prices.
Forecasts that sugar production in Thailand, one of the world’s leading sugar producers, may fall in the 2023/2024 season contributing to higher sugar prices.
In light of these developments, cotton traded on the Intercontinental Exchange soared 1.5%, coffee 2.6%, sugar 9%, and cocoa 6.5%.
By Emre Yıldırım,
www.aa.com.tr
