Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Soft futures edged higher on Tuesday with robusta hitting a seven-week high as Vietnamese exports fall, while rains in Brazils top growing areas are expected to disturb harvesting. Cocoa also advanced.

On the NYSE Liffe, robusta futures for September delivery traded at $1 944 a ton, up 2.10% on the day. Prices held in range between days high at $1 947, the highest since May 28, and low of $1 909. Robusta has been well supported recently, having gained 3.9% so far this week after climbing more than 7.4% during the preceding two weeks.

The coffee gained as exports from the worlds leading producer, Vietnam, declined amid rising local prices, which were the highest since May 28 yesterday. Vietnamese shipments plunged by 37% on the year to 88 397 tons in June.

Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, said in a report: “Robusta gained as the market attempts to play catch-up with strong Vietnamese values. The September contract scored a strong outside day with a positive close above recent resistance seen at the $1,900-a-ton level.”

Meanwhile, on the ICE Futures U.S. Exchange, arabica coffee for September delivery traded at $1.2638 at 13:06 GMT, up 2.56% on the day. Prices ranged between days high and low of $1.2663 and $1.2330 per pound respectively. The C contract settled 3.4% higher yesterday, extending this weeks advance to more than 6.2% after closing 1.33% lower the previous one.

Arabica surged as unfavorable weather conditions in top grower Brazil are expected to delay harvesting. Somar Meteorologia, a Sao Paolo-based weather forecaster, said in a report yesterday that growing areas in Brazil from Parana state to southern Minas Gerais will get rainfall from July 20 to July 24, which is likely to disturb harvesting.

Cocoa gains

Elsewhere on the market, cocoa advanced as the second annual harvest, called the main-crop is expected to be delayed. On the ICE Futures U.S. Exchange, cocoa futures for September delivery traded at $2 269.50 per ton at 13:06 GMT, up 1.45% on the day. Prices held in a wide range between days high at $2 277.50 and $2 233.50 per ton. Futures remained unchanged yesterday, after climbing more than 3.7% during the past three weeks.

Cocoa prices kept on climbing as the main-crop will probably be delayed due to dry weather and a large mid-crop, the first annual one. Eric Sivry, head of agriculture options brokerage at Marex Spectron, said in a report today: “One aspect is relatively clear now to happen. We should see a delayed start of the next harvest.”

Cotton gains as well

Meanwhile, cotton gained as well as cotton squaring fell behind last years pace, crop condition worsened and a weaker dollar also supported commodities.

On the ICE Futures Exchange, cotton futures for December delivery traded at $0.8547 per pound at, up 0.43% on the day. Prices held in range between days high and low of $0.8585 and 0.8502 per pound respectively. The fiber remained almost unchanged yesterday, advancing this week by more than 0.4% after settling 0.11% the preceding one.

In its weekly crop progress report on Monday, the USDA said cotton squaring fell behind last years pace despite a significant advance from the preceding week. As of July 14, 69% of the crop was squared, up from the previous weeks 51%. This however underperformed last years 80% during the comparable week and the five-year average of 75%.

As for the cotton condition, crop quality has worsened during the reported week compared to the previous one and is worse than last year. As of July 14, 26% of the crop was rated very poor-poor, compared to 24% a week earlier and 18% last year. Meanwhile, 32% was categorized as “Fair”, the same like the previous week, but below 2012s 37%. As for the premium quality, 42% was rated good-excellent as of July 14, below the preceding weeks 44% and last years 45%.

Elsewhere on the market, sugar futures for October delivery traded at $0.1620 per pound at 12:53 GMT, up 0.31% on the day. Prices ranged between days high and low of $0.1623 and $0.1611 a pound respectively.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Spot Gold rises to new record as US PCE boosts June cut betsSpot Gold rises to new record as US PCE boosts June cut bets Spot Gold rose to a fresh all-time high of $2,265.77 per oz. on Monday, after the latest US PCE inflation data reinforced expectations that the Federal Reserve would likely cut interest rates in June.Data showed last Friday that annual […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Yesterday’s trade saw USD/CAD within the range of 1.4331-1.4399. The pair closed at 1.4344, inching up 0.02% on a daily basis, while marking its 9th consecutive trading day of gains. The daily high has been the highest level since April 30th […]
  • USD/JPY higher after Chinese non-manufacturing sector slowed down momentum in SeptemberUSD/JPY higher after Chinese non-manufacturing sector slowed down momentum in September US dollar traded higher against the Japanese yen on Tuesday, as HSBC said that Chinese non-manufacturing PMI slowed down in September but remained in the zone of expansion, while this news neutralized to a certain extent the influence that the […]
  • Goldman Sachs hurt by computer glitchGoldman Sachs hurt by computer glitch A trading glitch occurred yesterday in Goldman Sachs computer system that resulted in a large number of erroneous single stock and options trades. Many of the trades may wind up being erased but the error could still cost the firm around $100 […]
  • Gold hits five-week low on Fed stimulus outlook, Syria peace talksGold hits five-week low on Fed stimulus outlook, Syria peace talks Gold fell to a five-week low and is headed to its worst weekly performance in more than two months on broad expectations that the Federal Reserve will trim its bond purchases at next weeks FOMC meeting. Fading fears that the U.S. will launch a […]
  • Research: The largest corporate fines in 2024 so farResearch: The largest corporate fines in 2024 so far We are just a few months into 2024 and two major corporations have already been slapped with fines of over one billion US dollars. While it is encouraging to see companies facing severe consequences for breaking the law, it does make one […]