Headlines:
- NOPA Crush will be released Monday, May 16th at Noon EST
- Freeze Warnings for the Upper Midwest This Weekend
- Coffee prices consolidate recent price rally
- JAB Holdings continues coffee consolidation with Krispy Kreme acquisition
Earlier this week, Luxembourg-based privately-held company, JAB Holdings, continued its recent run of acquisitions within the global food and beverage industry this week, in launching a takeover bid for US doughnut maker; Krispy Kreme. The U$1.5 billion deal signals JAB Holding’s strong intent to consolidate the global coffee industry and, in doing so, provides a strong competitor to Starbucks and Nestle SA in the retail coffee market. JAB Holdings is the private investment vehicle for one of Europe’s wealthiest business families. The company traces its roots back to Germany in the early 19th century where Johann Adam Benckiser bought a chemicals business in South-Western Germany.
Summary:
After a volatile response to the USDA report on Tuesday, the grain markets finished the week off in a more tempered fashion. July and November Beans finished the day down 9.25 and 9 cents respectively. Both of which were still able to close out the week about 30 cents higher than last week’s close. July Corn close up 1.75 cents to cap off the week with a 13.25 cent gain. December Corn was 2 cents firmer and up 13.50 on the week. Perhaps the biggest surprise for the week was the Wheat export sales numbers. July Wheat posted another 6.50 gain today and capping off a weekly gain of 10.50 cents. Continued profit taking was probably the main impetus of the Soybean decline while some short covering aided in stabilizing Chicago Wheat prices. The unwinding of long Soybean & short Corn spreads also played a role in the price action over the past two days.
In South America it appears that Brazil excessively front-loaded their Corn exports in late 2015. Brazil is currently running low on Corn while they wait for the Safrinha Corn harvest to start next month. They are importing Corn from Argentina, Paraguay and even a little from the US. Domestic Corn prices have been on the rise for them and they have not been able to stem the increase. The imports have not made much of a difference in prices. They are looking to the Safrinha Corn harvest for some price relief.
Crude Oil futures broke the April 29th high yesterday but gapped down at the open and was weaker today. The Baker Hughes report showed a reduction of 10 rigs for the week ending today sending the rig count down to 318. This marks the 8th consecutive week of cuts bring the rig count to its lowest level since October 2009. June Crude Oil futures was off about 50 cents on the day.
