Sugar
- U.S. cash traders report that bulk sugar price offers for the 2026-27 new crop remain firm for both beet and cane sugar this week, while some processors remain on the sidelines for new-crop sales
- About 30% of U.S. sugar beets are situated in the two worst current drought categories (D3 and D4), with roughly half of the vital Red River Valley experiencing drought, according to analysts
- Raw sugar futures advanced due to worsening global supply expectations and crop downgrades, while high crude oil prices have incentivized Brazilian mills to prioritize ethanol production over sugar for food, according to analysts
- According to Trading Economics, the International Sugar Organization forecasts a shift from a 1.1 million metric ton surplus in 2025/26 to a 200,000-ton deficit in 2026/27, with production expected to decline 1% to 180.1 million metric tons
Dry Beans
- Domestic dry bean end users have completed their coverage for Q4, while bookings for Q1 are picking up, according to this week’s updates from cash dealers
- Preliminary yield and production estimates point to a smaller U.S. dry edible bean crop this year, with overall production down compared to previous cycles, according to analysts
- The latest round of USDA-posted weekly cash offers were 16%-21% lower than last year’s levels for the spot position delivered to the warehouse for most dry bean varieties
Rice
- U.S. cash dealers report that domestic bookings of milled and industrial rice are complete through the balance of the calendar year, with some Q1 business now getting done
- Spot domestic rice futures rose to their highest levels since late June 2024
- According to the USDA, total planted rice area fell 28% to 2.017 million acres this year, the lowest level since 1972, as high fuel and fertilizer costs pushed many farmers to plant other crops such as cotton instead
- According to the USDA, about 50% of the rice crop is harvested, with 73% rated good-to-excellent
Flour
- The wheat markets were modestly lower this week
- Ongoing disruptions in the Black Sea shipping corridor continue to inject a risk premium into the grain complex, according to analysts
- According to the USDA, the spring wheat crop is 86% harvested, up from 77% last week and above the five-year average of 83%
- According to the USDA, winter wheat planting is 2% complete, compared to 4% a year ago and the five-year average of 5%, as traders continue to pay close attention to the dry conditions in the southern plains
- The USDA is expected to lower its national average corn yield on its September World Agricultural Supply and Demand Estimates report, scheduled to be released on September 11. Recent strength in the corn market has lent some underlying support to the wheat markets, according to analysts
- U.S. wheat prices remain very uncompetitive to non-captive destinations for export, according to analysts