ADMIS News
COFFEE
December Coffee was near unchanged overnight, as it continued to chop around inside a three-week range. Recent rains in Brazil have induced flowering and likely helped pollination, but consistent rains are needed to reverse the damage from the drought earlier this year. World Weather Service says a weather system Friday through Sunday should will help improve the moisture profile further before for a more sporadic pattern resumes next week.
SUGAR
March Sugar was slightly higher overnight but inside yesterday’s range down action. The market continues to consolidate its gains from the September rally, as recent rains in Brazil have eased concerns about the upcoming crop somewhat. World Weather Service expects another system to arrive Friday through that should will help further improve the moisture profile before a more sporadic pattern resumes next week. Some areas of center-south Brazil saw light to moderate rain in the last 18 hours. Despite the recent rains, the extreme heat, extended drought, and brush fires this year have raised concerns about a global tight supply situation reemerging next year. The Brazilian real has fallen to its lowest level since September 11 this week, which induces producers to sell sugar for export, which is priced in dollars and brings a better return in terms of the local currency.
COCOA
December Cocoa is lower this morning following a moderate selloff yesterday that came after it traded to its highest level since September 30. European cocoa grind data, released overnight, came in at 354,334 metric tons for the third quarter, down 3.3% from 357,502 for the same period last year. Their cumulative grind for 2024 has reached 1.430 million tons, down 1% from a year ago. Asian grind came in at 216,998 tons, up 2.6% from 210,968 a year ago. Their cumulative grind for 2024 has reached 860,698 tons, down 2.0% from a year ago. For the two regions combined, third quarter grind increased 2,862 tons from a year ago. Next up is the North American grind, which is scheduled to be released later today.
COTTON
December Cotton fell through technical support overnight to its lowest level since September 16. The dollar reached its highest level since August 1, which hurts the US export outlook. Asian equity markets were down after a less than enthusiastic response to a briefing on housing policy from the Chinese government, which only adds to the gloomy outlook global cotton demand. US export sales have had their slowest start since 2015/16. The weekly export sales report is postponed to tomorrow because the holiday on Monday. World Weather Service says west Texas cotton areas will get some rain Friday into Monday, which could disrupt harvest and raise concern over unharvested cotton fiber quality. However, the Delta and southeastern states will continue to be drier biased for at least another week, with the southeast possibly staying drier for ten days or more, which will be good for harvest.
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