Cocoa closed lower on follow through speculative selling tied to increasing certified stocks in New York and increased certified stocks. Charts show that trends are down for the short term. Speculators are liquidating longs at this time.
Cotton closed higher on ideas that good demand can continue and on speculation that the USDA will show less production in its annual reports next week. Demand has held together better than expected by many analysts.
Coffee was lower, with London the lead to the down side on what appeared to be speculative long liquidation. The lack of Robusta supplies for the short term had supported the London market until yesterday.
Orange juice closed lower as the weather stays tranquil in Florida. The market is keeping in a range as there will be less production this year due to greening disease and some unfavorable weather earlier in the year.
Cocoa closed higher in response to very strong grind data from the EU. TThe strong demand combined with ideas of short production this year was more tan enough to keep the rally going yesterday and should be enough to keep prices strong for at lest the near term.
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.