Agri Commodity Markets Research August 2021: Acres and Pains
Agricultural commodity prices have risen by 2% so far in August, led by softs and wheat. In comparison, Brent Crude prices dropped by 5% in the same period. Going forward, the return of wet weather – after a year of dryness – in main producer Brazil will be key, as September should see the flowering appearing on Brazilian arabica trees, as well as soybean plantings toward the middle of the month. A possibility of La Niña towards Q4 could result in dryness further ahead, but for now, we see some incipient rains over the south of Brazil. Meanwhile, in the US, investors are eagerly waiting on the harvest results for soy and corn.