Agri Commodity Markets Research September 2021: No Time to Dine
Agri commodity prices whipsawed in September, while energy prices soared on global supply concerns amid a backdrop of a strengthening US dollar. Farmers have no time to dine on the recent northern hemisphere harvest as weather continues to undermine their efforts, with persistent dryness in the US and Brazil affecting winter wheat plantings in the former and coffee and sugarcane in the latter. A potential re-emergence of La Niña could exacerbate drought risks in exactly these two areas. US harvest pressure may be fleeting; with stocks at multiyear lows it is unclear how much downward pressure can be exerted. Weather will likely continue to be a key factor for price direction.