Dollar and oil put pressure on future cotton prices on the NY Stock Exchange

Cotton prices ended this Thursday's session (21) with a sharp drop on the New York Stock Exchange. The futures contract expiring in July fell 4.44% and closed at US$77.98 per pound, pressured by the negative movement of commodities and the appreciation of the US dollar.

Throughout the day, fiber futures contracts registered more significant losses. Maturities were impacted by the rise in the dollar index and the rise in crude oil.

Despite the pressure on prices, export data from the United States showed a more positive performance for foreign sales of lint. The weekly report from the USDA (United States Department of Agriculture) showed that cotton sales from the 2025/26 harvest totaled 131,792 thousand bales in the week ending May 14. The volume represents the highest level in the last three weeks and an increase of 7.86% compared to the same period last year.

The report also highlighted that sales of the new harvest reached 215,962 bales in the week, recording the highest volume of the current season. Shipments stood at 289,351 bales, the lowest level in the last nine weeks.

Cocoa

Cocoa futures prices fell on the New York Stock Exchange, with the contract for delivery in July closing down 3.14% and priced at US$3,767 per ton.

Barchart noted that cocoa prices fell on Thursday, consolidating just above the two-week lows recorded on Monday. The dollar index's rise to a 6-week high this session pressured most commodity prices, including cocoa.

Signs of abundant cocoa supply are negative for prices, as cocoa stocks on the exchange rose to an almost two-year high, reaching 2,692,616 bags this session.

Last week, Côte d'Ivoire raised its cocoa delivery estimate to 2.2 million tonnes in the 2025/26 harvest, up from the previous projection of 1.8 to 1.9 million tonnes, citing favorable weather conditions.

Coffee

Coffee futures prices rose on the New York Stock Exchange, with the contract for delivery in July gaining 1.90% and closing the day priced at US$2.734 per pound. Barchart reported that coffee prices closed higher this session, with concerns that the El Niño weather phenomenon could harm the Brazilian coffee harvest next year, which led to short covering positions in coffee futures contracts.

CommercialCoffee Trading stated that El Niño could delay rain in Brazil in September and October, a period in which crops normally flower, damaging the 2026/27 Brazilian coffee harvest.

NOAA (US National Oceanic and Atmospheric Administration) estimates an 82% probability that El Niño conditions will manifest between May and July and persist until the end of the year, with a 67% chance of a "Super El Niño".

Sugar

Sugar prices rose during the session on the New York Stock Exchange. Sugar maturity for delivery in July increased by 1.15% and was priced at US$ 14.90 per pound. Sugar prices rose this session also amid growing concerns that the drought caused by the El Niño weather phenomenon could affect global sugar production. The emergence of El Niño will likely reduce rainfall in Brazil, India and Thailand, the world's three largest sugar-producing regions.

Orange Juice

Orange juice futures prices ended the session on a sharp rise in the international market. The contract due in July advanced 6.15% and closed at US$ 1,666.00 per ton.

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Source: CNN