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Brazilian Sugar Production Down


Cocoa prices finally ran out of upside momentum, but not before climbing 200 points (and nearly 8% in value) above their September 1st low. Cocoa has a bullish longer-term supply/demand outlook that can help the market find its footing.


Coffee prices have been unable to find their footing during September so far. The Brazilian currency lost more than 2.5% in value and reached a 2-week low, which became a major source of carryover pressure on the coffee market yesterday.


The market rallied to the highest level since August 16th yesterday but closed well off of the highs. The dollar was up sharply for the second straight day after putting in a 5-week low last week, and this undercut cotton. The possibility of another storm developing over the Gulf of Mexico that could threaten a maturing crop lent some support to cotton early.


Sugar prices remain in a short-term downtrend off of the August 31st peak. The market continues to be pressured by sluggish outside markets and lukewarm global risk sentiment. However, sugar prices have bullish supply developments in Brazil that are providing underlying support.

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