ADMIS News
COCOA
September Cocoa was slightly higher early Tuesday after falling to its lowest level since July 2 on Tuesday. Ivory Coast farmers told Reuters that dry spells and sunshine over the past week boosted prospects for the upcoming main crop. Soil moisture content was still high although rains were well below average last week. There assessments were a bit more upbeat than last week when they were complaining about not seeing enough sun. Rains have moved north of the main growing areas in recent weeks, but this is normal for this time of year. The rains typically return in August/September, but El Nino could reduce the amount of rain this year.
COFFEE
September Coffee was sharply higher early Tuesday and was back approaching the July highs. The trade is looking at tight old crop supplies and a slow harvest pace in Brazil for what had been expected to be a bumper crop. Recent heavy rainfall last week in some of Brazil’s arabica areas have raised new concerns about further delays and about bean quality.
COTTON
December Cotton was lower early Tuesday but inside Monday’s range. The market has been in a choppy sideways patter this month as it assesses a mixed weather outlook for the US crop. US crop conditions were near unchanged last week, with Monday afternoon’s Crop Progress report showing 46% of the US cotton crop rated good/excellent as of July 26, up from 45% the previous week but down from 55% a year ago and below the five-year average for this date at 49%.
SUGAR
October Sugar was slightly lower early Tuesday and was threatening to move back to the July lows. The market has been in a sideways pattern of the past four weeks, supported by El Nino concerns and high energy prices but limited by a modest surplus in global supply. Crude oil prices were lower again early Tuesday, which adds pressure to sugar on ideas it lowers the incentive to crush cane for ethanol. European beet yields are estimated at 76.0 metric tons per hectare, down from 77.7 tons estimated last month and 81.6 a year ago.
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