European Softs Futures Prices
Futures Market News and Commentary
At the closing bell on Tuesday, cotton futures were 45 to 67 points in the black. Prices were up triple digits at the day’s highs. USDA’s classing data as of Friday the 15th showed 338,578 upland cotton bales were classed on the week. That was 6.4% below the same week last year and 51.3% of eligible. MYTD upland classings rose to 12.98m bales. MYTD all cotton classings is to 13.38m bales as 405,410 pima bales have been classed. That compares to 17.78m upland and 18.28m total bales at this point last year. USDA’s Daily Spot Quotations reported 12,073 bales sold on 1/19, for an average price of 77.01 cents. The Cotlook A index dropped another half a penny to 87.10 for 1/18. The week’s AWP for cotton is 66.23 cents/lb.Mar 21 Cotton closed at 81.15, up 45 points,May 21 Cotton closed at 82.07, up 45 pointsJul 21 Cotton closed at 82.84, up 47 pointsDec 21 Cotton closed at 77.69, up 67 points
--- provided by Brugler Marketing & Management
Mar ICE NY cocoa (CCH21) on Tuesday closed up +63 (+2.49%), and Mar ICE London cocoa #7 (CAH21) closed up +13 (+0.74%).
Cocoa prices on Tuesday rallied, with NY cocoa at a 2-week high and London cocoa at a 5-week high. Cocoa prices gained Tuesday after some Ivory Coast cocoa farmers said they would strike and store their unsold beans in protest to low prices. The Ivory Coast and Ghana have accused some international chocolate companies of trying to avoid paying a $400-a-ton premium designed to support farmers by buying cocoa supplies through the ICE exchange.
Cocoa prices were already in rally mode on better-than-expected global Q4 grinding data. Data last Friday showed Asia Q4 cocoa grindings fell -4.2% y/y to 217,546 MT, a smaller decline than expectations of -9% y/y. Also, North American Q4 cocoa processing unexpectedly rose +7% y/y to 118,043 MT, stronger than expectations of a decline of -2.5% y/y and the highest for a Q4 in 5 years. On Thursday,... Read more
Mar arabica coffee (KCH21) on Tuesday closed down -1.00 (-0.78%), and March ICE Robusta coffee (RMH21) closed up +5 (+0.37%).
Coffee prices on Tuesday settled mixed. Arabia coffee fell back on expectations of record Brazil coffee exports, along with weakness in the Brazilian real. Brazil's coffee cooperative Cooxupe on Tuesday said that it expects Brazil's 2021 arabica exports to jump +20% y/y to a record 6 mln bags.
The Brazilian real on Tuesday tumbled -0.99% to a 4-session low against the dollar and was bearish for coffee prices. Weakness in the real encourages export selling by Brazil's coffee producers.
Robusta coffee on Tuesday posted moderate gains after Vietnam's National Coffee Association said it estimates that Vietnam coffee production will drop -10% to -15% this year due to natural disasters and lower investment resulting from low prices. Vietnam is the world's biggest producer of robusta coffee.
Monday's data from... Read more
March NY world sugar #11 (SBH21) on Tuesday closed down -0.35 (-2.13%), and March London white sugar #5 (SWH21) closed down -16.30 (-3.49%).
Sugar prices on Tuesday closed sharply lower as weakness in the Brazilian real against the dollar sparked long liquidation pressure in sugar futures. The real on Tuesday tumbled -0.99% to a 4-session low against the dollar. A weaker real encourages export selling by Brazil's sugar producers.
Sugar prices last Thursday rallied to a 3-1/2 year nearest-future high on the outlook for tighter global sugar supplies. Citigroup last Thursday raised its 2021 sugar price estimate to 14.7 cents/lb from 13.6 cents/lb, citing "disappointment in the scale" of the government of India's subsidy for sugar exports.
Smaller sugar output from Thailand, the world's second-largest sugar exporter, is bullish for sugar prices. Monday's data from the Thailand Office of the Cane & Sugar Board showed that Thailand's 2020/21 su... Read more