Commodities Impact Weather: Southern Plains Precipitation

 

  OMAHA--Variable rains across Brazil, and additional precipitation chances for the Southern Plains
wheat areas, are the primary weather items for the commodity trade's attention Friday.
MILD TREND IN MIDWEST
  The DTN ag weather forecast calls for benign conditions in the Midwest through the next week.
Temperatures will generally range above normal in the western sector, and near to above normal in
the eastern areas.
ADDITIONAL MOISTURE CHANCE FOR SOUTHERN PLAINS
  In the Southern Plains, heavy snow this week will melt and cause some muddy conditions in Texas
Panhandle feedlots for a short time. There are no such issues in southwest Kansas. Meanwhile, recent
rainfall and additional precipitation in the forecast may favor wheat in Texas and parts of
Oklahoma. Conditions do remain dry from Kansas northward. This will become more important as we move
through late winter and into spring.
LIMITED RAIN CHANCE IN CENTRAL BRAZIL
  Central Brazil continues to see limited chances for rain going into late January. Above-normal
temperatures and very low rainfall during the next seven days will deplete soil moisture and
increase stress on pod-filling soybeans.
PERIODIC SHOWERS FOR SOUTHERN BRAZIL
  Across southern Brazil, generally favorable conditions for developing crops continue from southern
Parana southward. Limited rainfall and warmer to somewhat hotter weather will help deplete soil
moisture during the next five days. The region may turn more seasonal in temperatures with a few
shower threats after that.
WEEKEND SHOWERS FOR BRAZIL COFFEE AREAS
  A weak trough and surface cold front remains in southeastern Brazil. This has allowed for somewhat
cooler weather and a few thunderstorms. There is some chance for scattered showers in key coffee,
citrus and sugarcane areas through Sunday. After Sunday, the key coffee areas of Minas Gerais may
turn drier and hotter again while the important coffee, citrus and sugarcane areas of Sao Paulo may
continue to see a few showers and less hot weather.
VARIABLE CONDITIONS IN ARGENTINA
  Argentina's weather pattern remains mostly favorable for crops at this time. Hot weather during
the weekend period may increase the risk to crops somewhat. However, scattered showers and more
seasonal temperatures follow the weekend hot spell.
MINIMAL COLD THREAT IN RUSSIA
  In Russia, some colder conditions are in place near the Volga valley, but the pattern is not
threatening to wheat. The trend remains dry through the next week.
SEASONAL DRYNESS IN CENTRAL CHINA
  In central China, seasonally-dry conditions are expected to continue for the North China Plain
while the Yangtze River valley may see some shower activity at times. There are no significant
concerns for wheat at this time.
BENEFICIAL RAINS IN INDIA
  Light to moderate showers have occurred through key wheat areas of Pakistan and northwest to
north-central India during the past few days. Winter wheat will benefit from these showers as crop
development advances. Showers also fell through some of the winter rapeseed region during the past
two days.
DRYNESS CONCERN IN SOUTH AFRICA
  Above-normal temperatures and diminishing rainfall leave most growing areas of South Africa in
need of more moisture. The crop is in or approaching pollination over eastern areas. Some showers
are expected in southeast locations. It will remain on the dry side in the north and west. Longer
range charts suggest some chance for more widespread showers later next week.

Starbucks price set for 94 pct of 2015 coffee supply -CFO

NEW YORK, Jan 22 (Reuters) - Starbucks Corp has fixed the price it will pay for most of its coffee beans this year after going on a buying spree late last year when prices were under pressure, Chief Financial Officer Scott Maw said on Thursday.

The move reflects a strategy by major coffee buyers to protect against potential spikes in arabica coffee prices amid concerns over prolonged dry weather in top grower Brazil and the impact of leaf disease in Central America.

Maw said Starbucks has now fixed prices on 94 percent of its coffee needs for 2015 after buying a "significant" amount of coffee in the last six weeks of 2014. The company said in October it had covered two-thirds of its bean needs for 2015.

The purchases came as the price for front-month arabica coffee on ICE Futures U.S. fell as low as $1.64 a lb on Dec. 31 from more than $1.90 a lb in late November.

Maw said that, over the last year, Starbucks has tended not to buy coffee when the price exceeded $1.90 a lb.

He has not seen any indication that bean supplies have been disrupted, but opportunity buying under $1.90 might indicate the world's roasters are preparing for a sustained period of high prices.

That level is well off the 2-1/2-year highs above $2.20 seen in October last year, but is still well above historic averages.

"We don't see or hear anything that indicates a slowdown in supply," Maw said. "Everything indicates that the coffee market is still healthy in origin."