Cocoa processing in Asia climbed 3.7 percent in the first quarter as consumption of chocolate- based confectionery and beverages increased in the region, spurring grinding capacity expansion in Indonesia.
Standard Chartered Plc recommended buying sugar futures for March 2015 delivery as dry weather in top producer Brazil threatens to cut output, potentially tipping the market into the first shortage in five years.
Coffee growers in Vietnam, the biggest producer of robusta beans used by Nestle SA, are holding record stockpiles as they curb sales amid speculation that drought will reduce next year’s harvest. Futures fell.
Sugar output may exceed demand for a second year after farmers boosted planting as futures surged, pushing prices lower, Standard Chartered Bank said. That may lower costs for drinks makers like units of Coca-Cola Co.
Palm oil inventories in Indonesia, the biggest supplier, probably decreased in January to the lowest since June 2012 as production fell for a second month. Futures advanced to the highest since Dec. 9.
Japan, the biggest corn buyer, may increase grain imports to guarantee food supplies after the nation’s strongest earthquake on record and a tsunami devastated the northeast coastal region, said Standard Chartered Plc.
The six-month bear market in palm may be ending as declining output in Malaysia curbs a record glut, with Sime Darby Bhd., the largest producer, forecasting a rally in the world’s most-used cooking oil.