Agri Commodity Markets Research July 2021: Frozen Beans, Baked Beans
Softs stole the show in July, as frost hit the heart of the Brazilian arabica coffee belt and also impacted sugar. The worst frost in 27 years led to ICE Arabica jumping by 27% and Robusta by 12% so far in July (coffee trees are very susceptible to frost damage), while sugar jumped 4.7%. At the time of writing, another cold front is entering Brazil and will reach key coffee areas on Thursday and Friday. Elsewhere, weather has not been much kinder. Excessive rain and floods affected wheat quality in western Europe, while the ongoing hot weather and drought in North America worsened conditions for spring wheat, corn, and soybeans. Further afield, there were flash floods in China and India. Usually, weather would return to normal after such extremes, but there is a 66% chance of another La Niña event by the end of the year. So normal weather, if we see it, may not last for long.