Agri Commodity Markets Monthly July 2020: Normal Weather Is Taking the Market by Storm
US weather has been remarkable in recent weeks, and this is likely to continue in the coming weeks, with a significant improvement in corn and soybean crop conditions – despite earlier concerns. Furthermore, globally, La Niña now looks a little weaker – though it still has the potential to affect southern hemisphere crops. The dry weather in Brazil (drier than usual for the dry season) is helping a very good sugarcane and coffee harvest. And as long as it rains in good volumes at the return of the wet season, this should not pose a major problem. On the currency front, the US Dollar Index has fallen 3.7% since the end of June. The weaker US dollar has increased USD-denominated futures valuations and is assisting US exports. US-China tensions continue to escalate, with closures of consulates on both sides; however, Chinese weekly purchases of US corn reached a record in July.