ADMIS News
COCOA
September Cocoa extended its rally early Tuesday to reach its highest level since January 12, but it eased back to below Monday’s close as the session progressed. The market saw a sharp rally on Monday off elevated concerns about global production as El Nino sets in. However, Ivory Coast farmers interviewed by Reuters seemed more optimistic about crop prospects in light of the recent sunny weather that has allowed soils to absorb the recent heavy rains that have caused so much concern. World Weather Inc. says seasonal rains have been shifting a little farther to the north recently leading to lighter and more sporadic rainfall in southern cocoa production areas across west Africa. Rains will be watched closely as El Nino sets in. In the previous El Nino event, heavy rains in August and September caused severe disease problems, only to be followed by extreme heat and drought the following winter.
COFFEE
September Coffee was lower early Tuesday, but it was still inside the upper half of Monday’s big range-up day that took it to its highest level since last October. News over the weekend that Brazil’s harvest was still well behind last year triggered another round of short covering. Unseasonable, heavy rains in June delayed the harvest and raised concerns about crop damage. However, drier conditions in Minas Gerais over the past week have been better for harvest and drying. Safras and Mercado said on Friday that Brazil’s coffee harvest for the 2026/27 season had reached 52% of the planted area as of July 1 down from 60% seen at this point last year and the five year average of for that date of 55%. This was up from 44% the previous week, thanks to a dry pattern that emerged to help advance the harvest.
COTTON
December Cotton was higher early Tuesday in the wake of the weekly Crop Progress report on Monday afternoon that showed another decline in US crop conditions. The report showed 46% of the US cotton crop was rated good/excellent as of July 5, down from 48% the previous week and 52% a year ago and below the five-year average for this date at 47%. Texas was 36% G/E, down from 39% last week and 42% a year ago but still above the five-year average at 34%. US and Texas declined for the second straight week. Georgia and Arkansas improved last week. Missouri and Mississippi declined. The report also showed 49% of the US cotton crop were squaring as of July 5 up from 47% a year ago and the five-year average for this date at 47%.
SUGAR
October Sugar was moderately lower early Tuesday but inside the upper half of Monday’s range. Market bulls may have been disappointed with the failure to take last week’s low on Monday. The market has seen a sharp rally off concerns about the European beet crop in the wake of extreme heat and drought in June. They are not out of the woods yet.
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