Agri Commodity Markets Monthly September 2020: China's Great Food Wall – Made in USA
With an end to summer and amid a second Covid-19 wave in Europe, ag commodity prices took a breather, after ferocious interest from speculators, a weak US dollar, and a torrent of Chinese G&O buying. This month, Chinese buying prompted CBOT G&O prices to reach some of the highest levels in more than two years, despite the incoming US corn and soybean harvests. Weather has been mixed across the globe, as La Niña may cause South American dryness, negatively impacting G&O crops in the region heading into next year. It might also cause wetter-than-normal weather in Australia, aiding the wheat crop recovery. Meanwhile, ICE Arabica has dropped 15% so far in September, as prices correct down to more fundamental levels and realize a record crop in Brazil, while cocoa markets are still digesting the election risk in Côte d’Ivoire.