ADMIS News
COCOA
July Cocoa was higher early Tuesday, as it seemed to be benefiting from the market’s bounce off the 50-day moving average on Friday. The market is in a consolidation pattern, finding support from the potential threat that El Nino poses for production this year but limited by good weather in the meantime that points to a strong finish to the mid-crop. Ivory Coast port arrivals totaled 33,000 metric tons for the week ending June 7, up from 22,000 the previous week and 18,000 a year ago.
COFFEE
July Coffee was higher early Tuesday, having managed to find some support at Friday’s 18-month lows. Rain in some of Brazil’s key growing areas threatens to slow what is expected to be a very strong harvest for their arabica cop. World Weather Inc. expects a period of unsettled weather Wednesday into Saturday, which may be enough to stall farming activity and possibly induce some premature flowering. Cooler temperatures will accompany this week’s rain, but they are not expected to fall below the frost threshold.
COTTON
December Cotton extended its losses early Tuesday, falling to its lowest level since April 13. The weekly Crop Progress report released Monday afternoon showed 53% of the US cotton crop was rated good/excellent as of June 7 versus 49% a year ago. 77% of the US cotton crop was planted, up from 66% the previous week and 75% a year ago and in line with the five-year average for this date. Texas was 68% planted versus a five-year average of 71%. Georgia was 85% planted versus 87% on average. 15% of the crop was setting bolls versus 11% a year ago and a five-year average of 11%. For the USDA supply/demand report on Thursday, a Bloomberg survey of analysts has an average trade expectation for US 2026/27 production to come in at 13.53 million bales (range 13.16-14.30), up from 13.30 million in the May update.
SUGAR
July sugar was lower early Tuesday and managed to close a gap at 14.06. Lower crude oil prices may have contributed to the weakness, as the trade may be starting to doubt the extent to which ethanol will lure cane crushers away from producing sugar. According to Reuters, Cepea said ethanol prices in Brazil fell for the second week in a row and that prices were near production costs, leading some mills to pause sales. The trade will be looking to the next UNICA update for an idea of how much erstwhile sugar output has been diverted to ethanol.
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