ADMIS News
COCOA
December Cocoa was near unchanged early Monday following a sharp rally the previous two session after falling to a three-month lows. Persistent dry conditions in Ivory Coast are lowering expectations for the 2026/27 main crop. A Reuters survey of farmers, exporters, cooperatives and buyers put Ivory Coast’s main crop at around 1.25 million metric tons, down from with 1.5 million last season. They also blamed reduced fertilizer and pesticide usage because of high prices. Farmers say the weather had been persistently dry since July, hampering flower and pod development, and they say that any rains that do develop will be too late to help the main crop but could help the mid-crop.
Cocoa beans with cocoa pod in sack
COFFEE
December Coffee was higher early Monday, but it struggled to make new progress on its recovery rally. There are concerns that the excessive rain in Brazil this summer damaged bean quality, but the dire concerns about the crop were eased by the strong export pace in August. ICE stocks fell 125 bags on Friday to 260,239, yet the increased by 5,935 bags last week and reached their highest level since August 3 on Wednesday. Rains and cooler weather over the weekend with more expected this week in key growing areas of Brazil should ease concerns about the 2027 crops after hot and dry conditions last week. Mexico and Central America rainfall has been abundant recently, resulting in improved soil moisture and coffee development potential.
COTTON
December Cotton was higher early Monday after bouncing off the 200-day moving average on Friday. Friday’s Commitments of Traders Report showed managed money traders were net sellers of 7,017 contracts of cotton for the week ending September 29, reducing their net long to 74,593. This is down from 107,976 contracts on September 1, and while it is still quite large, represents a 30% decline from the peak, which appears to have been enough long liquidation to calmed jittery longs. Export sales for the week ending September 24 at 241,727 were was down from 353,511 the previous week but still better than average of the previous four weeks at 79,000.
SUGAR
March Sugar broke above the August contract high on Friday and extended that rally early Monday. Heavy rainfall in center south Brazil is keeping production there down. Datagro said mills are struggling to maintain harvest operations at normal levels. The rains also interrupt port loadings because the berths are not covered, and rain would damage the sugar. Data from shipping brokers showed that the main port of Santos had to stop loadings in at least 35 days from July to September.
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