Supply prospects boost cotton but weigh on arabica

Agricultural commodities have faced a number of opposing pressures over the last month, including the further strengthening of the US dollar and the partial recovery in the price of crude oil. But supply-related issues were the main driver of price movements for many commodities, including cotton, cocoa, sugar and arabica coffee. The prospect of a tighter cotton market helped push the price to a three-and-a-half month high. At the other end of the spectrum, more rain in Brazil’s main arabica coffee growing region weighed on its price, as did strong January production in Colombia.