Softs Report 11/06/2026

DJ Global Food Prices Ease on Cheaper Grains, Dairy and Meat, UN Says
By Giulia Petroni
Cheaper grain, dairy and meat pulled global food prices lower in October from the previous month, offsetting a sharp sugar rally driven by weather-related supply disruptions in major producing regions, the United Nations’ Food and Agriculture Organization said.
The FAO’s food price index–which tracks a basket of internationally traded food commodities–averaged 133.9 points last month, down 1.2% from its revised September level but 5.9% higher than a year earlier.
Cereal prices fell 4.5% to their lowest level in a year. Wheat was pressured by subdued international demand, better production prospects in Argentina, and expectations of easing constraints in Black Sea exports. Maize prices also fell, weighed down by U.S. harvest pressure and expectations of ample supplies in South America. Barley and sorghum prices followed the broader grain market lower.
Dairy was down 1.1%, driven by lower butter and cheese prices, as ample supplies and subdued buying interest–particularly in the European Union–more than offset increases in milk powder. By contrast, skim milk powder prices rose on firm import demand and limited supplies for prompt delivery.
Meat prices fell 1.2% in October, though they remained above year-earlier levels. Pork weakened due to abundant EU supplies, limited export opportunities and subdued global demand. Sheep meat prices eased as seasonal Australian supplies increased, while beef faced pressure from intensifying competition in global markets. Poultry remained largely unchanged, as steady international demand offset ample supplies, with Brazilian exports holding up despite trade restrictions following Newcastle disease outbreaks.
Sugar prices, instead, climbed 6.6% last month–marking their fourth consecutive monthly increase and reaching their highest level since December 2024–as heavy rainfall disrupted sugarcane harvesting and processing in Brazil’s key Centre-South region. Prices were also supported by concerns over India’s production outlook following uneven monsoon rainfall and forecasts of lower output in the EU and Thailand in the 2026-2027 season.
Vegetable-oil prices edged up 0.3% as rising soybean and sunflower oil prices more than offset declines in rapeseed oil, while palm oil prices were largely unchanged. Soybean oil climbed to its highest level since late 2022 on firm biofuel demand and seasonally tighter South American supplies, while sunflower oil recovered on limited Black Sea export availability and logistical disruptions. Palm oil prices remained elevated, supported by strong import demand and expectations of lower production in Southeast Asia. Rapeseed oil prices instead fell on seasonal supply increases and weaker-than-expected biodiesel demand, particularly in the EU.

COTTON
General Comments: Cotton was higher yesterday as strong weekly export sales and ideas of a cut in production went against ideas of strong harvest progress amid mostly favorable conditions. The US stock markets were ll sharply higher yesterday. The weekly charts show mixed trends. The harvest is active amid good conditions. USDA last week showed that conditions are now 33% good to excellent. Progress shows that the crop was 63% harvested and 92% opening bolls. Forecasts and reports of dry conditions in Cotton areas continue for Texas, the Delts, and the Southeast. Temperatures will be warm in all areas.
Overnight News
Chart Trends: Trends in Cotton are mixed. Support is at 76.50, 75.50, and 74.80 December, with resistance of 82.40, 84.00 and 85.30 December

FCOJ
General Comments: Futures were lower yesterday on followe through selling. USDA said that the US oranges production is now estimated at 61.7 million boxes down from 63.5 million last year. Florida production was estimated at 10.0 million boxes, from 13 million last year. Isolated showers are showing up in Florida and trees are suffering from drought. The weather is considered good for production in Mexico and showers and rains are featured in Brazil as the rainy season is here.
Overnight News: ICE said that 0 notices were posted for delivery against November futures and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 128.00, 122.00, and 116.00 January, with resistance at 149,00 151.00, and 155.00 January.

COFFEE
General Comments: New York was lower and London were higher yesterday. The higher move in London comes just before the start of harvest later this month. Trends are mixed in London on the daily charts and in New York. Brazil conditions are called good for next crop development, and the wet season is here. Arabica has been boosted near term by quality concerns owing to excess El Nino-linked rains in Brazil and worries the weather pattern might cause dryness ahead. The next crop is developing in the rest of South America amid scattered to isolated showers. Indonesia is now about done with its harvest. Asian conditions are called good to poor, with Indonesia too dry and drier conditions developing in Vietnam. Mexico is in good condition, but Central America has been dry. Premiums are now at or near record highs in Central America due to the drought. Vietnam exported 1.569 million metric tons of coffee in the first 10 months of 2026, up 18.8% from the same period a year earlier, government data showed on Tuesday. Central America and Mexico combined production is expected to fall more than 9% this year due to dry conditions.
Overnight News: The ICO average price is 247.74 ct/lb.
Chart Trends: Trends in New York are mixed. Support is at 270.00, 264.00, and 258.00 December, and resistance is at 310.00, 318.00 and 322.00 December. Trends in London are mixed. Support is at 3140, 3080, and 3020 January, with resistance at 3310, 3360, and 3430 January.

SUGAR
General Comments: New York and London were higher again yesterday after the big down move on Tuesday. Trends are down in both markets on the daily charts. Drought in Brazil was a major concern but rains have returned to center-south regions. Refineries in the region are producing ethanol at the expense of Sugar. Indian production is less after hot and dry conditions and production in the rest of Asia could be hurt by El Nino weather. It is too dry in southern China. Higher world petroleum prices are supporting higher ethanol prices and could cause less Sugar to be produced. Brazilian production dropped 41.6% in the first half of September due to excess rains.
Overnight News:
Chart Trends: Trends in New York are mixed to down. Support is at 1840, 1800, and 1750 March and resistance is 2000, 2050, and 2080 March. Trends in London are mixed to down. Support is at 488.00, 478.00, and 472.00 March, with resistance at 511.00, 5224.00, and 538.00 March.

COCOA
General Comments: New York and London were both lower yesterday. Daily chart trends are still turning down. A big main crop harvest has arrived in West Africa but it has now turned dry for the next crop. Dry conditions in Ivory Coast have created concerns about the prospects for 2026/27 production, although a large global surplus in 2025/26 has ensured that short-term supplies remain ample. Ivorian farmers said that poor rainfall risks bringing the September-to-February main crop to an early end. There are still reports of increased production potential in other countries outside of West Africa, including Asia and Central America. The market feels that there is less demand due to the high prices seen last year but demand has started to increase.
Overnight News:
Chart Trends: Trends in New York are mixed. Support is at 5050, 4990, and 4920 December, with resistance at 5440, 5650, and 5910 December. Trends in London are mixed. Support is at 3790, 3770, and 3720 December, with resistance at 4230, 4300, and 4500 December.

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