Potential Impacts to 2022 US Winter Wheat Production During a La Nina Year

By Patrick Sparks, Global Risk Management Inc. Dryness in the Southern Plains and support for a continued La Nina into the spring will keep wheat end users on edge! A La Nina is a global weather pattern spurred on by cooling of ocean surface temperatures in parts of the Pacific Ocean, and for the second  Continue Reading »

A Forward View on Cocoa Futures Prices

By Adam Graves, Global Risk Management Inc. Early expectations for West African production to fall as much as 10% from prior year’s levels in the 21/22 season started in October, and there is optimism around global demand improving from record 20/21 levels as the countries across the world shift out of pandemic-induced restrictions and supply  Continue Reading »

U.S. Soybean Complex – The Crosscurrent of Fundamental Inputs

By Brian Harris, Global Risk Management Inc. 2021 has been one for the record books thus far in the soybean complex as the markets continue to move through a longer-term structural change. While the trajectory for the soybean and soybean meal markets has been lower since June on a solid U.S. crop and sluggish demand,  Continue Reading »

Corn and Soybean Yields Seen Rising in September – What History Says Comes Next

By Adam Graves, Global Risk Management Inc. There has been ongoing debate around corn and soybean yields essentially all growing season. Inconsistent weather, or at very least weather favorability being inconsistent across different parts of the United States, as well as weekly USDA crop updates that saw conditions falling throughout the summer had dampened optimism  Continue Reading »

US Domestic Shortening and Oil markets

By Brian Harris, Global Risk Management Inc. As soybean oil futures prices have taken on a bit of a calmer tone over the last several weeks, end users are starting to reassess what “value” should look like going through the rest of 2021. While the domestic soybean crushing community seems to have a better handle  Continue Reading »

Revisiting Corn and Soybean Acreages (Yes, Again)

By Adam Graves, Global Risk Management Inc. With the market having now digested last week’s 6/30 USDA Acreage report and the corn and soybean growing seasons in full swing, it was once again thought valuable to revisit the topic of acreages. As a refresher, in the 3/31 Prospective Plantings report the USDA projected 2021 corn  Continue Reading »

Soybean Oil Share of Product Value in the Domestic Crush

By Brian Harris, Global Risk Management Inc. As soybean oil futures prices and forward inverses have continued to escalate, it is important that we not lose sight of soybean oil’s share of product value in the mix of decision making. Historically, it has only been under unusual and generally short- lived circumstances where the U.S.  Continue Reading »

Revisiting Corn and Soy Acreages Following Initial Projections

By Adam Graves, Global Risk Management Inc. Now that the market has had ample time to digest the 3/31 USDA Prospective Plantings report and corn and soybean plantings are in their early stages, it was thought prudent to briefly revisit the recent Global Risk Management study on how the SX/CZ ratio impacts planted acreage as  Continue Reading »

Malaysian Palm Oil Production Disappoints Again in February – Sends Prices to New Highs

By Patrick Sparks, Global Risk Management Inc. Palm oil production in Malaysia continues to be plagued by labor shortages resulting from COVID travel restrictions as well as excessive rains in many of the growing regions. Production in February was just over 1.1 million tonnes, a 5 year low. This brought cumulative 20/21 production to date  Continue Reading »

La Nina & West African Cocoa – An Oasis South of the Sahara?

By Adam Graves, Global Risk Management Inc. If you are an avid follower of world agricultural developments, or follower of world weather trends in general, then you are well aware that 2020/21 has seen a La Nina weather pattern. In mid-December, Global Risk Management’s Patrick Sparks gave some insight into the “often referenced but frequently  Continue Reading »