Sugar futures price rises in New York on concerns about El Niño
Concerns about the El Niño phenomenon supported future sugar prices in this Monday's session (01) on the New York Stock Exchange. The contract for delivery in July closed the day with an increase of 2.77% and quoted at US$ 14.45 per pound.
According to information from Barchart, the market continues to monitor the possible impacts of El Niño on global sugar production, mainly in India.
The Indian Meteorological Service has lowered cumulative rainfall estimates for the June-September season to 90% of the long-term average. In April, the Institute announced that the forecast was at 92%.
Barchart also highlighted that the emergence of El Niño will likely reduce rainfall in Brazil, India and Thailand, the three largest sugar-producing regions in the world. 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".
Coffee
Arabica coffee futures prices closed the day with new lows on the New York Stock Exchange, where the deadline for delivery in July registered a drop of 1.88% and is quoted at US$ 2,606.00 per pound.
Barchart highlighted that on Monday coffee prices expanded the losses that had been monitored since last Friday, when Arabica coffee fell 3.15%. "Arabica coffee prices reached a new one-and-a-half-year low on Monday on the nearest futures contracts chart," it said.
Barchart also highlighted that coffee prices are falling due to weather forecasts that indicate drier conditions this week in Brazil's coffee growing regions, which would allow the coffee harvest to resume after last week's delay due to heavy rains.
Cocoa
El Niño concerns also impacted cocoa futures trading on the New York Stock Exchange. The contract for delivery in July ended the day at US$3,895 per ton and down 0.71%.
Tranding View reported that market participants remain alert to the possible impacts of the El Niño phenomenon, which could harm cocoa plantations in Côte d'Ivoire and Ghana, countries responsible for more than 60% of global cocoa production.
On the other hand, the prospects for recovery of cocoa production in Africa in 2025/26 are limiting further price increases.
Farmers in Côte d'Ivoire reported that rainfall was below average in most of the country's cocoa-producing regions last week, but was sufficient to increase the size and quality of the interim harvest, which runs between March and August.
At the same time, the market is also monitoring the latest data showed that ICE cocoa stocks have increased further, reaching a nearly two-year high of 2,846,957 bags on May 29.
Cotton
For cotton, futures ended the day with advances on the New York Stock Exchange. The futures contract for delivery in July closed up 0.72% and was priced at US$76.64 per pound.
Traders' Commitment data showed that investment funds reduced their net long cotton futures positions by 7,845 contracts in last week's session, taking them to 54,200 contracts.
Orange Juice
The futures contract for orange juice for delivery in July ended the session with a drop of 5.81%, with the contract closing at US$ 1,500.00 per ton.
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Source: CNN