ADMIS News
COFFEE
December Coffee turned sharply lower early Wednesday after trading to its highest level since September 1 earlier in the session. The market failed to close a gap from that day on the move, and this likely inspired selling on the part of disappointed bulls. Perhaps additional evidence of Brazil’s strong crop also pressure the market with Brazilian government data showing the nation exported 3.93 million bags of green coffee in September, the highest in 20 months and up 20.4% from September 2025.
COTTON
December Cotton was lower early Wednesday following a three day rally off the June lows. The dollar was higher overnight and approaching Monday’s 18-month high, which again raises concern about US competitiveness on the global market. Tropical Storm Isias forming in the Gulf of Mexico has the potential to land as a hurricane along the central Gulf coast by Friday. This could bring heavy rains to the eastern Delta and southeastern states over the weekend, interrupting harvest and potentially causing damage to open bolls.
COCOA
December Cocoa is lower for the second straight session after reaching its highest level since September 7 on Monday. El Nino-inspired concerns about the 2026/27 crop provide support, but ample supplies from a strong 2025/26 crop and concerns about demand limit the upside for the time being. World Weather Inc. noted in increase in rain in Ivory Coast and Ghana this week. Periodic shower and thunderstorm activity is expected across west Africa during the next week to ten days, though amounts will vary and some areas that need it the most may miss out. The level of moisture reaching the region will be closely watched. There are also concerns that flooding Ecuador may have reduced their 2026/27 crop and hurt cocoa quality.
SUGAR
October Sugar reversed lower on Wednesday after trading to new contract highs earlier in the session, as the market appears to have gotten overdone on the El Nino inspired production worries. The nearby contract reached its highest level since February 2025 prior to the setback. At its peak overnight, the market had gained 3.22 cents (+18%) since September 22 and 6.57 cents (44%) since the June low. One of the key supportive factors in this latest move has been the heavy rains in Brazil that is slowing harvest and crushing activity. Last week, Brazilian Ag Ministry data indicated that center south production for the first half of September was 41.6% below year ago levels, and there are concerns there could be more of the same in upcoming reports as the rains continue. The rains also slow loadings.
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