Cotton Crop Conditions Improve Slightly

COTTON

December Cotton was lower early Tuesday after the weekly USDA Crop Progress report showed a modest improvement in US cotton conditions last week. The report showed 39% of the US cotton crop was rated good/excellent as of August 30, up from 37% the previous week but down from 51% a year ago and below the five-year average for this date at 46%. Texas was 22% G/E, up from 19% last week but down from 44% a year ago and a five-year average of 34%. Georgia was 62% G/E, down from 63% last week but up from 51% a year ago. The report also showed 89% of the US crop setting bolls versus a five-year average of 91% and 29% with bolls open versus 28% on average. The trade seems to be looking for USDA to reduce US cotton production in the September 11 crop report.

COCOA

December Cocoa was slightly lower early Tuesday after failing to take out Monday’s 11+ month high. The trade has been expecting a slow start to the West African main crop harvest, and there are concerns that El Nino will reduce output as well, but some rains have started to show up after a dry spell that lasted from late July into the first three weeks of August. Ivory Coast cocoa arrivals totaled 2,500 metric tons for the week ending August 30, down from 2,000 the previous week and 9,000 a year ago.

COFFEE

December Coffee resumed its selloff early Tuesday after consolidating last week’s losses for a few sessions. After delays this season due to heavy rains, the Brazilian harvest is just about complete, and traders are anticipating somewhat more aggressive selling on the part of the growers. Safras & Mercado reported on Monday that Brazil had completed 97% of its anticipated 2026/27 harvest as of August 26, up from 94% the previous week. The robusta harvests was complete, and the arabica harvest had reached 96% of expected production versus 99% a year ago.

SUGAR

October Sugar was higher early Tuesday as it made an attempt to reach last week’s 27-month highs but then backed off from those levels. There is a chance that UNICA will release an update on Brazil Center-South sugar production for the month of July today.

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