Softs Mixed, Cotton Higher
The market remains in a short-term uptrend and looks set for further gains. Europe accounts for more than one-third of all global cocoa processing, and does so without a domestic source for cocoa beans. A positive tone for key outside markets and improving sentiment from the region can help cocoa prices maintain upside momentum.
The market remains in a strong short-term uptrend from a strong base of support. While global demand concerns and a record high Brazilian crop will remain sources of pressure, coffee is finding supportive supply/demand news that can help prices remain well supported on near-term pullbacks.
The jump in crop conditions is bearish and this could attract new buying without help from outside markets. Worries about crop damage from Hurricane Hanna helped to support yesterday. The storm made landfall Sunday night near Corpus Christi, which is a key cotton growing area that has been doing well this season. As the storm moved inward, it was expected to bring torrential rains and flooding to south Texas on Monday, which is also a growing area. The flooding could also pose a threat to the crop.
The market continues to show support near the 11.50 level and has been unable to breakout to the downside of the March consolidation. Sugar prices have been weighed down by expectations of a sharp increase in 2020/21 production from Brazil and India. However, supply issues from a major producer have helped to lift sugar back towards the upper portion of the June/July consolidation zone
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