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Smaller Than Expected Cotton Production


With bullish supply developments combined with a bullish longer-term demand outlook, the cocoa market should stay fairly well supported. December cocoa reached a new 12-week high.


Coffee prices will start today on a 4-session winning streak. Reports that shipping container shortages have restricted Brazilian exports provided underlying support as that added to that nation’s recent supply woes. There appears to be little doubt in the market that Brazil’s upcoming 2022/23 Arabica production will be severely impacted by last month’s frost conditions, and that continues to underpin coffee prices.


December cotton posted contract highs for the third session in a role as the USDA supply/demand report showed bullish surprises. With the weather in Texas, traders expected higher harvested acres, better yield and increasing ending stocks. However, the USDA lowered harvested acres and lowered yield.


Sugar prices have consolidated most of Tuesday’s multi-year high. This week’s Unica supply report reflected a sizable decline in Brazil’s Center-South cane crushing and sugar production from last season, due to very dry conditions since last year and July’s frost event, and that continues to underpin sugar prices.

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