Cotton Closed Sharply Higher
While there are divergent opinions on West African production prospects this season, there is a general consensus that as COVID restrictions are relaxed, global demand will continue to improve. While the market may see continued volatility through month-end, cocoa prices should find underlying support.
Coffee prices remain in a steady uptrend. The market has a generally bullish supply/demand outlook, and that should help coffee prices find support on near-term pullbacks. The Brazilian currency was unable to extend its recovery move into Wednesday, which in turn put carryover pressure on coffee prices.
December cotton closed sharply higher yesterday after trading outside the range of the previous two days. Reports that the US and China are engaging in trade talks lent support to the market. So far this marketing year, China has been the buyer on roughly one-third of all US cotton export sales.
Sugar prices may remain well below their early October high, but they have been able to maintain upside momentum in the face of slumping energy prices. With this week’s bullish shift in the Brazilian supply outlook, sugar may be able to see independent strength over the near-term.
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