Cotton closed a little lower as traders got ready for the USDA reports that will be released this morning. Some follow through buying was tied to reports of very hot weather conditions in Chinese production areas that could hurt yields.
Futures were lower after the Brazilian government delayed announcement of its price support measures on Monday afternoon. Many who had covered positions in anticipation of the market returned to the sell side.
The emerging market selloff sparked by speculation of reduced Federal Reserve stimulus may cut revenue for investment banks including Standard Chartered Plc and HSBC Holdings Plc, JPMorgan Chase & Co.’s Cazenove said.
Sugar traders are the most bullish in two months on speculation rain may again disrupt the harvest in Brazil, the world’s largest producer, just as output and exports from second-ranking India decline.
The premium paid for arabica beans favored by Starbucks Corp. over the robusta used by Nestle SA may rally from a 20-month low because of a surge in supply from Vietnam, the biggest grower of the less costly coffee.