Slow Harvest Pace For Coffee
Cocoa prices were unable to extend their breakout move as they continue to face headwinds from the demand side of the market. Although some key outside markets are providing significant carryover support, lukewarm global risk sentiment has kept cocoa from extending its second quarter uptrend.
Coffee prices are drifting towards the bottom end of their June consolidation zone as they continue to be pressured by demand concerns. Coffee continues to hold its ground above the June 1st contract low as it is finding fresh support from both the supply and demand sides of the market.
It seems the trade is not expecting good news out of the USDA Supply/Demand update for Cotton and the weekly export sales report for release today. Traders are expecting ending stocks to come in near 7.37 million bales (6.7-8.0 million range) as compared with 7.7 million as the May estimate and from 7.1 million for the 2019/20 season.
With the market looking at a sizable 2020/21 global production surplus, Sugar may have a difficult time holding its ground. The market is still looking for a sizable 2020/21 production increases from Brazil and India, and that could limit sugar’s near-term upside.
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