Agri Commodity Markets Monthly January 2021: Short Supplies Force Prices to Rise
CBOT G&O prices launched out the gate in 2021, reaching their highest prices since 2014 as supplies continued their decline from last year. Global demand continues to be strong, and the weather is imperfect, leaving a precarious balancing act until resupplies arrive in major exporters. Non-Commercials are piling into an inflation bet and acreage is competitive with many G&O products in contraction; consumers should be prepared for a risk-filled year. Meanwhile, coffee and sugar prices also rose in the wake of stronger-than-expected demand, the effects of drier-than-normal weather in Brazil in 2020, as well as astronomical container shipping rates.