Market Updates for May 13, 2022
Grocery & Bakery | Frying Oil
Bunge's recent announcement of force majeure due to floods near their Manitoba plant has withdrawn a large amount of canola oil from the market, which will undoubtedly add to supply headaches for the next several months. May's WASDE was released earlier today, indicating a soybean carryout that was in line with trade expectations. This is good news considering the challenges farmers are having getting into the fields with the recent string of cool, wet weather we've had in the US. Forecasts are drying out which should allow planting to pick up the pace.
Grocery & Bakery | Sugar
Beet sugar prices are high but flat due to the shortage in product while cane pricing is also rising lately to the highest levels since 2011 due to the demand switch as a result of the shortage of beet sugar with all origin sugar now higher than this time last year. We have ample supply secured to meet our demands 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. There is no longer beet sugar available on the market to purchase to take on additional business leaving cane or imported product as the only options for spot purchasing at this time. Spring beet planting for the 2023 crop is also behind schedule due to cold weather in the 4 main beet growing states which could present issues for the 2022/2023 marketing year and delay any hope of some new crop shipping during the late August and September ship period.
Grocery & Bakery | Flour
Winter wheat crop ratings have risen slightly with some positive rainfall in parts of the country though the ratings are still behind where we need to see a price drop. Spring wheat plantings are also still delayed by wet and muddy conditions in the spring wheat regions. As the war in the Ukraine continues along with the poor crop conditions, pricing will remain elevated which is also keeping supply relatively stable here in the US as our pricing is too high for world trade.