Cotton futures briefly tumbled, after the USDA raised its outlook for global production and inventories by the end of the 2016-17 crop year.
The USDA trimmed its ideas of US 2016-17 cotton closing stocks by 300,000 bales, to 4.80m bales, thanks to stronger exports, as was expected.
But the bureau struck a downbeat tone for price prospects.
“Greater supplies outside of China are expected to pressure cotton prices in 2017-18,” the USDA said.
“Hence, the price received by US farmers could fall within the range of 60-70 cents per pound, compared with the current 2016-17 forecast of 68.5 cents.”
The Chinese government is selling off more of its huge stocks, reducing import prospects.
“China continues to sell nearly all of the stock offered in its daily reserve auctions,” said Tobin Gorey at Commonwealth Bank of Australia.
“It’s too early though to know if that selling pace can be maintained – these auctions have months to run yet and probably a lot of low quality stocks yet to be offered.”
Cotton futures tumbled after the USDA data, but recovered some equilibrium later in the session, finishing down 0.2%, at 77.93 cents a pounds after touching lows of 77.10 cents a pound.
Tight Brazilian markets
Coffee futures fell, under continued pressure from evidence of big Colombian production, despite slowing Brazilian exports.
Brazil exported 2.23m 60-kg bags of green coffee in February, down from 2.62m bags a year ago, exporters association Cecafé said.
Instant coffee exports were sharply lower, at 248,000 bags compared from 313,000 bags a year earlier.
Brazilian instant coffee producers have been struggling to source robusta coffee for use.
But there are signs that prospects in Brazil’s robusta region are finally improving.
May robusta futures finished down 0.3%, at $2,182 a tonne.
May arabica coffee futures finished down 0.9%, at 140.59 cents a pound.
Cocoa turns lower again
Cocoa futures fell again, although prices failed to break the lows of the previous week.
“Outlooks for big production this year and next year are causing the selling interest,” said Jack Scoville, at Price Future Group.
And despite the low prices, there is little sign of buyers stepping in to take advantage.
“The trade continues to look for demand to take the cocoa being sold from West Africa,” Mr Scoville said.
Sugar threatens new lows
Sugar futures failed to extend their last-minute bounce of the previous session, pushing toward a level of technical support that analyst say, if broken, could presage another leg downward.
May raw sugar in New York finished down 2.2%, at 18 cents a pound.
This is just above the lows touched last December.
The US Department of Agriculture lifted its ideas of Mexican sugar exports to 1.054m tonnes, 882,000 tonnes forecast previously.
This supply-demand forecast is used to set Mexico’s export quota to the United States.
Pressure from crop upgrade
Corn and soybean futures led wheat lower, after the USDA unveiled even bigger than expected upgrades to the size of Brazilian crops.
May soybean futures were down 1.2%, at $10.09 ½ a bushel in late deals, after pushing back below the 200-day moving average.
May corn futures were down 1.5%, at $3.66 ½, down below the 100-day moving average.
May Chicago wheat futures were down 1.0% in late deals, at $4.42 ½ a bushel.
(Source – http://www.agrimoney.com/marketreport/pm-markets-cotton-futures-briefly-slump-on-big-world-stocks–4007.html)