Crop prices saw a record rally in the first quarter of the year on drought in Brazil causing concern for coffee, sugar, and citrus output however, now that U.S. and Canadian farmers are accelerating the pace of sowing spring crops and coffee stockpiles in the U.S. in April were 7.6% above April of 2013 easing concerns over supply, the Standard and Poor’s Agricultural Spot Index fell 7.9% in May and is headed for another weekly drop. Coffee and wheat posted the biggest losses for May with each showing a decline of 13% – the biggest decline since September 2011. Global grain supplies are continuing to increase with no major negative weather events developing and as of May 25th U.S. farmers have planted 88% of this year’s corn crop and 59% of the soybean crop. Both the U.S. corn and soybean crops are expected to be potential record-breakers and Arabica coffee is poised for its biggest decline since September 2011 now that it is believed that supplies will meet global demand.
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