ADMIS News
COFFEE
March coffee broke out above the recent consolidation overnight to trade to its highest level since June 20. ICE exchange coffee stocks fell 33,764 bags on Wednesday, which puts them on-track for their largest monthly decline since September 2022. There has been a buildup of coffee waiting to be graded at exchange warehouses, but no grading took place on Wednesday. Yesterday’s decline followed a 2,830-bag increase the day before, which was the first such increase in several weeks. Colombia’s National Federation of Coffee Growers said on Wednesday that their nation’s coffee production fell to 10.6 million bags in 2022/23, down 9.1% from the previous year.
COCOA
March cocoa eased slightly overnight after reaching another new 46-year high yesterday. Prices have increased $184 (up 4.5%) this week, and they should finish November with their twelfth monthly gain in the past 13. This season’s Ivory Coast port arrivals are running 33% behind last season’s pace, which is further evidence of the West African supply problems that have underpinned prices. Heavy rainfall has slowed the harvest and drying of cocoa beans, but the dry season is approaching. This may help harvest in the short term, but it will eventually slow production.
COTTON
March cotton was nearly unchanged overnight and on Wednesday, as traders were awaiting this morning’s weekly export sales report. They are concerned about demand and the outlook for the global economy, and they may be pinning their hopes on a strong report today. Last week’s report showed US cotton sales for the week ending November 16 at 327,932 bales (current and new crop combined), down from 358,735 the previous week and the lowest since October 19. However, they were still the fourth highest since June. Cumulative sales for 2023/24 are the lowest since 2016/17.
SUGAR
March sugar gapped lower overnight and traded to its lowest level since October 23. The Brazilian government agency CONAB is projecting Brazil’s sugarcane production to reach a record 677.6 million tonnes in 2023/24, up 10.9% from the previous year and up from an August estimate of 652.9 million. Sugar production is expected to reach a record 46.88 million tonnes, up 27.4% from the previous year and up from the previous forecast of 40.89 million.
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