Market Updates for April 22, 2022

Section Type

Grocery & Bakery | Sugar

Beet sugar prices are on the rise due to the shortage in product while cane pricing is steady (and still higher than beet barely), though higher than this time last year. We have ample supply secured but prices will continue to stay elevated as the competition for planted acres of beets and sugar cane world wide is stiff with some countries planting things like soy beans and corn in their place. Transportation costs remain elevated as well. 

Grocery & Bakery | Flour

The winter wheat crop is currently seen as a bit poor due dry conditions in the plains states combined with the ongoing conflict between Russia & Ukraine. In the northern plains, they did receive some snow which was good for moisture but delaying further planting of the spring wheat. Wheat futures are elevated 70-90% from this time last year contributing to the significantly higher pricing we are seeing as a result of the earlier mentioned issues. 

Grocery & Bakery | Frying Oil

The Russian military resumed their assault of Eastern Ukraine this week.  A resolution seems unlikely to occur near-term which means shipments out of the Black Sea region are going to remain slow for the foreseeable future. Combined with a continued declining soybean crop in South America, many buyers are being forced to accept the reality of tight global veg oil supplies extending into 2023. Veg oil buyers are going to need to get product somewhere. In Europe, olive oil has become a forced substitution while the rest of the world will rely on more soy and palm oil. This sentiment is supported by continued strong export inspections for US soybeans which will add more stress to an already tight carryout. Firm pricing appears here to stay. Corn, sun, olive, soy, palm, peanut - all are trading at record price levels, some with extremely volatile ranges. It will take large shifts in either supply or demand to change course.

Grocery & Bakery | Frying Oil

The Russian military resumed their assault of Eastern Ukraine this week.  A resolution seems unlikely to occur near-term which means shipments out of the Black Sea region are going to remain slow for the foreseeable future. Combined with a continued declining soybean crop in South America, many buyers are being forced to accept the reality of tight global veg oil supplies extending into 2023. Veg oil buyers are going to need to get product somewhere. In Europe, olive oil has become a forced substitution while the rest of the world will rely on more soy and palm oil. This sentiment is supported by continued strong export inspections for US soybeans which will add more stress to an already tight carryout. Firm pricing appears here to stay. Corn, sun, olive, soy, palm, peanut - all are trading at record price levels, some with extremely volatile ranges. It will take large shifts in either supply or demand to change course.