ADMIS News
COCOA
European cocoa processing jumped 14% y/y for the second quarter to 356,854 tons with the market looking for a 7% to 11% year-over-year increase. The median estimate in a Bloomberg survey was for a 7.5% increase.
COFFEE
Coffee prices are close to climbing back above their 50-day moving average. South American supply issues continue to provide underlying support that can extend coffee’s recovery move. The Brazilian currency regained more than 1.2% in value on Monday, and that provided coffee with carryover support as that can help to ease pressure on Brazil’s farmers to market their near-term coffee supply to foreign customers.
COTTON
While the market closed higher after the USDA report, the production outlook is bearish as harvested acres jumped nearly 1 million acres from the June estimate even though planted area was revised lower in the June acreage report. This drove ending stocks higher even with a significant revision higher in exports. In addition, crop conditions are improving and the weather forecast is benign.
SUGAR
Sugar prices remain on the defensive and pressured by bearish supply news. Unless they see a positive turnaround in key outside markets, sugar may be heading for a retest of their mid-June lows. The Brazilian trade group Unica released their supply report for the second half of June which had Center-South sugar production at 2.892 million tonnes which was 5.6% above last year’s total, while the Center-South cane crush was 4.4% higher than last year as mostly dry conditions helped out with cane harvesting and crushing.
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