European Softs Futures Prices
Futures Market News and Commentary
Cotton futures backed off of midday highs, but held on enough to close with a gain. May was the strongest with a 158 point move; Oct and Dec gained 71 points. The weekly update to Export Sales showed 147,535 RBs of cotton sold on the week ending March 26. That was down 47% wk/wk and was 54% below the same week from a year ago. The report showed 8.627 million RBs shipped through the first 35 weeks of the MY. That is 20.8% above last year’s pace. Of the total exports reported, 12% were to China, compared to last year when the nation accounted for 10.3% of the total. February cotton exports totaled 1.97 million (480-lb) bales. That was a MY high and 32.7% above Feb ’19. The Cotlook A index was up 60 points to 61.50 cents per pound on April 1st. The AWP for cotton was lowered 236 points to 42.63 cents/lb. The LDP was increased to 9.37 cents/lb.
May 20 Cotton closed at 49.99, up 158 points,
Jul 20 Cotton closed at 49.76, up 154 points
Oct 20 Cott... Read more
May ICE NY cocoa on Thursday closed up +58 (+2.60%), and May ICE London cocoa #7 (CAK20) closed up +28 (+1.61%).
Cocoa prices on Thursday pushed higher after weak export data from Cameroon sparked short-covering in cocoa futures. The Cameroon Ports Authority on Thursday reported that Cameroon Mar cocoa exports plunged -48% y/y to 444 MT.
London cocoa on Wednesday dropped to a 3-month low on ample cocoa supplies. The Ivory Coast estimated Wednesday that its cocoa farmers delivered a record 1.76 MMT of cocoa in its 2019/20 main crop (Oct-Mar), up +5.4% y/y.
Also, cocoa output in Ghana, the world's second-largest cocoa producer, is ample after the Ghana Cocoa Board reported Wednesday that it purchased 685,032 MT of cocoa from farmers during Oct 1-Mar 12, up +1.0% y/y.
The coronavirus pandemic is undercutting cocoa demand as the global lockdown of millions of people curbs demand for chocolate and other cocoa products. Also, cocoa processing demand in Q1 may d... Read more
May arabica coffee (KCK20) on Thursday closed up +3.35 (+2.89%), and May ICE Robusta coffee (DFK0) closed up +38 (+3.25%).
Coffee prices on Thursday moved higher on robusta supply concerns after the Vietnamese government ordered a 15-day nationwide lockdown, which may lead to disruption of coffee supplies to delivery points in Vietnam, the world's largest robusta coffee producer. Vietnam's General Statistics Office reported last Friday that Vietnam's Jan-Mar coffee exports fell -3.9% y/y to 469,000 MT.
Coffee prices also saw support from dwindling U.S. coffee inventories on the news that ICE-monitored coffee inventories fell to a 1-3/4 year low Wednesday of 1.948 mln bags.
A slowdown in global coffee exports is supportive for prices after ICO reported Wednesday that global coffee exports during Oct-Feb fell -3.4% y/y to 50.97 mln bags.
Coffee prices continue to be undercut by extreme weakness in the Brazilian real. The real on Wednesday fell -0.53% and po... Read more
May NY world sugar #11 (SBK20) on Thursday closed up +0.25 (+2.49%), and May London white sugar #5 (SWK20) closed down -1.40 (-0.41%).
Sugar prices on Thursday settled mixed with London sugar at a 2-week low. NY sugar moved higher after crude prices surged more than 15% on Thursday after President Trump said he expects Saudi Arabia and Russia to cut oil production after he spoke with Saudi Crown Prince Mohammed Bin Salman. The surge in crude oil sparked short-covering in sugar futures. The surge in oil prices is bullish for ethanol prices and may encourage Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus reducing sugar supplies.
Overall weakness in the Brazilian real against the dollar is a major bearish factor for sugar prices. The real on Thursday fell -0.48% against the dollar and posted a new record low of 5.2837 reals/USD. A weaker real encourages export selling by Brazil's sugar producers.
Sugar... Read more