COCOA
Unless there is a significant rebound in global risk sentiment, cocoa could fall back on the defensive. September cocoa was able to shake off early pressure and finish Monday’s inside-day session at unchanged levels. With prices on track for negative monthly and quarterly results coming into this week, cocoa found early support from fund short-covering which more than offset carryover pressure from lukewarm European stock markets and a subdued Eurocurrency.
COFFEE
Coffee prices are finishing June with strong upside momentum and are more than 15.00 cents above last Monday’s 6-week low. Reports that frost conditions could reach coffee-growing areas in the Brazilian states of Parana and Sao Paolo provided significant support to coffee prices early this week.
COTTON
December cotton closed higher Monday after trading up to its highest price level since June 11. Looking ahead to Wednesday’s Planted Acreage Report, the average pre-report estimate for US cotton planted area is 11.856 million acres (range 11.5-12.4 million), which would be down from 12.036 million estimated in March and 12.093 million last year. The 1-5-day weather forecast calls for moderate to heavy rains across the cotton belt.
SUGAR
With fresh Brazilian bullish supply news providing underlying support, sugar may be heading for a retest of its multi-year high from early May. Crude oil prices fell more than $1.50 a barrel from a new multi-year high while RBOB gasoline posted a sizable loss, but those outside markets were unable to prevent sugar from posting a fifth positive daily result in a row.
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