Headlines:
- Coffee market faces ‘period of reckoning’ over Colombian crop
The coffee market faces a “period of reckoning” in discovering how significantly the poor start to Colombia’s mitaca harvest reflects longer-term setbacks, veteran analyst Judith Ganes-Chase said. Colombia’s coffee output in April, the first month of the mitaca harvest, tumbled 20% year on year to 834,000 bags – the weakest monthly figure for more than two years, data from Colombia’s Fedecafe producers’ group shows. Ms Ganes-Chase said that the decline followed “much speculation” over the crop, following rains early in the year which some observers said had affected flowering. However, it is unclear yet how much of the April figure represented merely delays in production, thanks to delayed blossoming, or more permanent production losses.
Summary:
Much of the Midwest was drenched with overnight showers and there is little indication of change in the weather forecast. Current weather conditions are expected to bring planting delays through the weekend. Overnight Corn moved lower with reports of it being ahead of the average planting progress. The Crop Progress report showed Corn planting at 71% complete, compared to 47% complete the week prior. The 5-year average sits at 70%. Once the regular trading session Corn briefly moved into positive territory topping at 10 am eastern. By noon eastern it fell to news daily lows only to rebound over the last two hours of trading. Crop Progress release also reported Corn emerged at 31% complete versus the 15% from the week prior. Although, it still lags behind the 5-year average of 36% emerged. Soybean futures followed through on yesterday’s gains. It moved up into the 10 am eastern timeline pulled back into noon then rallied strong for the balance of the day. The Crop Progress report showed Bean planting at 32% complete (up 18% from the prior week) and on par with the 5-year average. Soybeans emerged were at 8% lagging the 5-year average by 1%. The intraday Wheat price action for Wheat mirrored that of Corn. High at 10am, new low at noon, then a rally for the balance of the regular session. July Wheat was essentially flat on the day after gaining one tick at settlement. The Winter Wheat condition was at 51% in the good to excellent category. That was down 2% from the prior week and 11% behind the pace for this time last year. Winter Wheat 63% headed, up 13% from the prior week and 6% ahead of the 5-year average. The spring Wheat Crop progress is 78% planted versus 54% from the prior week and 5% ahead of the 5-year average. It is 40% emerged which is almost double the levels from the prior week but lags the 5-year average of 44%.
