Cocoa is falling on the NY stock exchange with an increase in certified stocks

The increase in certified cocoa stocks put pressure on future prices in this Friday's session (29) on the New York Stock Exchange. The contract for delivery in July registered a drop of 4.29% and closed at US$3,923 per ton.

According to information from Barchart, ICE cocoa stocks reached the highest level in almost two years, reaching 2,846,957 bags on Friday.

In the previous week, cocoa prices fell to near four-week lows amid the prospect of abundant supply. Barchart also highlighted that on May 14, Côte d'Ivoire raised its cocoa delivery estimate to 2.2 million tons in the 2025/26 harvest, above the previous projection of 1.8 to 1.9 million tons, citing favorable weather conditions.

Coffee

Arabica coffee futures contracts ended this Friday's session on a high, amid concerns about weather conditions in Brazil and technical market movements given the approaching expiration of the July contract options.

The contract for delivery in July advanced 1.63% on the day, closing at US$ 2.7420 per pound.

According to Vicente Zotti, owner of NRP Agro, the proximity of the expiration of the July contract options, which occurs in around 14 days, has intensified the pressure on the selling side. Furthermore, the advance of the harvest in Brazil continues to add volatility to negotiations.

"The proximity of the expiration of the July contract options is putting pressure on the selling side and helping with this movement. Furthermore, the entry of the harvest gaining more pace is also putting pressure on prices", said Zotti.

Cotton

Cotton futures contracts ended this Friday's session with a slight increase on the New York Stock Exchange, supported by positive export data released by the USDA (United States Department of Agriculture).

The contract for delivery in July increased 0.08% on the day, closing at US$76.15 per pound.

According to the USDA's weekly export sales report, released this Thursday, 153,622 thousand barrels of cotton from the 2025/26 harvest were sold in the week ending May 21. The volume represents the highest recorded in the last four weeks.

For the new harvest, sales totaled 112,041 thousand barrels in the period, a lower performance than that observed in the previous week.

Shipments reached 317,706 barrels, representing the highest volume in the last three weeks and reinforcing the demand for North American cotton on the international market.

Sugar

After recording declines in recent sessions, sugar futures prices ended the week with slight gains on the New York Stock Exchange.

The contract for delivery in July registered an increase of 0.93% and closed at US$ 14.06 per pound.

According to information from Safras & Mercado, future maturities were negatively pressured throughout this week by an estimated harvest increase in both the European Union and Brazil.

According to IMG's commercial and financial consultant, Leonardo Silvestre, the funds continue to put pressure on the market, which still shows a downward trend. Currently, net short positions are close to 80 thousand contracts, equivalent to around 4 million tons of sugar.

"This shows that the market still sees a comfortable supply of the commodity in the short term," he said.

Another point monitored by investors is the drop in hydrous ethanol prices. According to Leonardo, the reduction in biofuel margins could change the relationship between sugar and ethanol production in plants.

"The fall in ethanol reduces the attractiveness of biofuel and helps support sugar futures contracts", he explained.

Climate is also on the market's radar. The possibility of a stronger El Niño from June increases concerns about rain in the Center-South of Brazil, which could affect the pace of harvesting and sugarcane crushing.

"In addition to production, more intense rains can also make logistics and shipments at ports difficult", highlighted Leonardo.

The market is still monitoring the climate impacts in competing countries, such as India and Thailand, where dry and cold weather could harm the development of sugarcane fields and the start of the next harvest.

Orange juice The futures contract for orange juice for delivery in July ended the session with a drop of 5.57%, with the contract closing at US$ 1,592.00 per ton.

https://stories.cnnbrasil.com.br/?post_type=web-story&p=531642

Source: CNN