European Softs Futures Prices
Futures Market News and Commentary
Cotton ended the Wednesday trade session with gains limited to 5 points. Futures did post new highs, which for Dec was just a point off the Jan 22 high. USDA’s Daily Spot Quotations report said 3,823 bales were sold at spot on Wednesday at 9 points better 65.79 cents/lb. The Cotlook A index was up another 140 points to 76.80 cents/lb on 10/20. The trade spat between China and Australia, which began in barley, has moved to cotton as China told importers to source cotton elsewhere. There has been no official ban or tariff imposed, but the verbal commands apply to both cotton and coal from Australia. The AWP for cotton is 53.43 cents/lb, through tomorrow.
Dec 20 Cotton closed at 71.04, up 2 points,
Mar 21 Cotton closed at 71.73, up 3 points
May 21 Cotton closed at 72.34, up 5 points
Jul 21 Cotton closed at 72.81, up 3 points
--- provided by Brugler Marketing & Management
Dec ICE NY cocoa (CCZ20) on Wednesday closed up +45 (+1.89%). Dec ICE London cocoa #7 (CAZ20) closed up +14 (+0.85%).
Cocoa prices on Wednesday posted moderate gains, with NY cocoa posting a 1-1/2 week high and London cocoa posting a 1-week high. A slump in the dollar index to a 1-1/2 month low on Wednesday sparked short-covering in cocoa futures.
Last Friday, London cocoa fell to a 2-1/2 month low, and NY cocoa last Thursday posted a 2-1/2 month low on global cocoa demand concerns. The Cocoa Association of Asia reported last Friday that Q3 Asia cocoa grindings tumbled -10% y/y to 202,665 MT, much weaker than expectations of -4.3% y/y. The National Confectioners Association last Thursday reported that Q3 North America cocoa grindings fell -4% y/y to 118,260 MT, the lowest for a Q3 in 12 years but a smaller decline than expectations of -5% y/y. The European Cocoa Association reported last Thursday that European Q3 cocoa processing fell -4.7% y/y to 345,739 MT, the lowes... Read more
Dec arabica coffee (KCZ20) on Wednesday closed down -0.75 (-0.71%). Jan ICE Robusta coffee (RMF21) closed down -10 (-0.78%).
Coffee prices on Wednesday settled moderately lower, with arabica at a new 3-month nearest-futures low. Arabica coffee remains under pressure on concern that a worsening of the Covid pandemic in Europe will prompt governments to impose new stay-at-home measures that will curb coffee consumption and demand. On Wednesday, Germany reported a record 8,523 new Covid confections, and Poland reported a record of 10,040 new Covid infections. On Wednesday, Italy reported new Covid infections soared by a record 15,199.
Arabica coffee supplies remain ample after CeCafe last Tuesday reported Brazil Sep green coffee exports jumped +11.5% y/y to 3.5 mln bags, the highest ever volume for September.
The International Coffee Organization (ICO) on Oct 2 raised its global 2019/20 coffee surplus estimate to 1.54 mln bags from a prior estimate of 952,000 bags... Read more
Mar NY world sugar #11 (SBH21) on Wednesday closed down -0.04 (-0.28%). Dec London white sugar #5 (SWZ20) closed down -3.50 (-0.88%).
Sugar prices on Wednesday posted moderate losses as they were weighed down by a slump in crude prices. Crude fell by more than -4% Wednesday, which undercuts ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies.
Another negative factor for sugar was the action by the Indian Sugar Mills Association (ISMA) on Monday to raise its India 2020/21 sugar production estimate to 31 MMT from a June forecast of 30.5 MMT.
Sugar prices on Monday rallied to 7-3/4 month nearest-futures highs on concern that Brazil's dry conditions may curb sugarcane yields and reduce Brazil's sugar production. Irregular rain in Brazil's sugar-growing areas is keeping soil moisture levels below normal. On Monday, data from Somar Meteorologia showed that... Read more