Sugar was a little lower again as the real in Brazil weakened against the U.S. dollar. The data showed that more sugar will be coming to the market even though many processors are producing a little more ethanol than sugar.
Coffee was higher in early trading, and put in its best close in New York for the month. Speculators appeared to be covering short positions in active trading. Industry and producers appeared to be quiet.
Futures closed higher on follow through buying tied to lower than expected production estimates from USDA. Production in Florida was estimated at just 125 million boxes, more than 8 million boxes less than last year.
Cotton closed mostly a little lower in response to the USDA reports that showed very good production. Increased production was expected, but ending stocks increase as demand did not increase all that much.
Futures were lower on follow through speculative selling. Prices could continue to work lower in the short term as there still is a lot of sugar available to the world market despite the logistical problems in Brazil. It is very likely that this is just a rally for a few days.
Cotton closed lower once again. There is a lot of talk that China might start to liquidate some of the massive supplies of cotton it has amassed over the last couple of years and that this could kill demand in world markets.