Inside: Grains & Raw Material
Price floor in wheat and sugar has been
After a period of sharp price declines in American wheat, the worst is over, according to ABN Amro. The way up has also been started in sugar. The weather conditions clearly affect the commodity markets.
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Choose the subscription that suits youThe dry weather in the US caused quality and quantity problems for wheat, corn and soybean crops, but prices rose too quickly and a correction has now taken place. The bank states that the small wheat area will act as a price floor.
Sugar market improved
The favorable weather has led to price pressure in the sugar market. The production is quite a bit larger than last season. However, it appears that other (more positive) factors will dominate the landscape for the coming months. There are still ample stocks, but the pressure has already been priced in by the market.
Source: ABN Amro Insights