Softs Report 02/06/2026

DJ World Food Prices Fall for Fifth Straight Month, U.N. FAO Says
By Giulia Petroni
Global food prices fell for a fifth consecutive month as declines in dairy, meat and sugar outweighed gains in cereals and vegetable oils, the United Nations’ Food and Agriculture Organization said.
The FAO’s food price index–which tracks a basket of widely traded food commodities–averaged 123.9 points in January, down 0.4% from December and more than 22% below the March 2022 peak after Russia’s invasion of Ukraine.
Dairy prices fell 5% last month, marking the seventh consecutive monthly decline. The drop was driven mainly by falling cheese and butter prices, due to ample supplies and strong global competition, while milk powder prices edged higher, supported by renewed import demand for skimmed milk powder.
Meat prices ticked 0.4% lower from December levels, reflecting lower pig meat prices amid ample supplies across the European Union, while bovine and ovine meat prices remained largely stable. Poultry prices rose, supported by strong international demand.
Sugar prices fell 1% on expectations of higher global supplies, with a significant production rebound anticipated in India and favorable prospects in Thailand. A positive production outlook for the 2025-26 season in Brazil contributed to bolster global supply expectations, reinforcing downward pressure on prices.
Vegetable-oil prices instead rose 2.1% in January. Price gains for palm, soy, and sunflower oils–driven by seasonal supply slowdowns, tight export availability, and strong demand–more than offset a decline in rapeseed oil prices due to ample EU supplies.
Cereals prices inched 0.2% higher last month. Wheat and maize prices were slightly lower due to overall comfortable global supplies, despite some weather-related concerns in Russia. U.S. barley prices edged up on robust demand for Argentinian supplies, while the rice index rose 1.8% on firmer demand for fragrant varieties.

COTTON
General Comments: Cotton was lower yesterday. Trends are down on the daily and weekly charts. There are demand concerns moving forward on weak world economy ideas led by the US weakened economy and demands in world forums. Tariffs on other nations that change all the time were creating an atmosphere not conducive for new demand. The USDA reports released a couple of weeks ago showed less production and unchanged demand. Ending stocks were less.
Chart Trends: Trends in Cotton are mixed to down. Support is at 61.20, 60.60, and 60.00 March, with resistance of 62.20, 62.60 and 63.10 March.

FCOJ
General Comments: Futures lower yesterday as the Florida harvest is active and the weather remains benign as conditions are mostly dry. Weather for the next crop was very cold over the weekend and some damage to trees and fruit is possible. Chart trends are down. The cold and dry Winter weather has created ideas of some crop losses. Traders are worried about demand even with overall lower prices. The weather is considered good for production in Brazil and Mexico. Scattered showers are reported in Brazil.
Overnight News:
Chart Trends: Trends in FCOJ are mixed. Support is at 160.00, 146.00, and 136.00 March, with resistance at 184.00, 189.00, and 194.00 Marzo.

COFFEE
General Comments: New York closed lower on follow through selling yesterday, but London was higher The trends are down in New York and in London on the daily charts. There are still reports of increasing harvest sales from Vietnam as the new harvest is active. There are reports of very good conditions in Brazil and a large crop is forecast. Most farmers are holding for better prices but seem to have lost that battle for now . Scattered showers are being reported now to improve tree condition in Brazil. Mexico is in good condition, as is Central America. Vietnam has scattered showers lately and conditions there are called good. Vietnamese producers are selling new crop Coffee.
Overnight News: The ICO average price is 266.50 ct/lb.
Chart Trends: Trends in New York are mixed to down. Support is at 300.00, 294.00, and 288.00 March, and resistance is at 331.00, 338.00 and 342.00 March. Trends in London are mixed to down. Support is at 3730, 3670, and 3600 March, with resistance at 3860, 3880, and 3930 .

SUGAR
General Comments: New York and London were lower yesterday and trends are down on the daily and weekly charts. There are good supplies for the market from good growing conditions for cane and beets around the world continue. The prospect of a big global surplus in the 2025/26 season was keeping the market on the defensive with a rise in production in India and Thailand set to increase supplies especially for White Sugar while global consumption is expected to remain steady. Indian crops are seeing good finishing weather and production ideas have been increasing.
Overnight
Chart Trends: Trends in New York are down. Support is at 1410, 1380, and 1350 March and resistance is at 1510, 1540, and 1560 March. Trends in London are down. Support is at 398.00, 392.00, and 386.00 March, with resistance at 427.00, 432.00, and 437.00 March.

DJ Sugarcane Harvested in Brazil Doubles Last Year’s Pace — Market Talk
0931 ET – The center-south region of Brazil harvested more than twice the amount of sugarcane then at this time last year, according to data released by Unica. The firm says that through the first two weeks of January, 605,000 metric tons of sugarcane were harvested, versus 301,000 tons at this time last year. However, refined sugar production is down 32%, at only 7,000 tons. But Brazil is in its typical off-season period for sugar, says Unica. “The resumption of production by some units should only happen more significantly from the second half of March, following a historical pattern observed in the country,” says Luciano Rodrigues of Unica in a note. Total ethanol production was 427 million liters, up 16% from the same time last year. (kirk.maltais@wsj.com)

COCOA
General Comments: New York and London closed lower yesterday. Short term trends are still mixed to down. A big main crop harvest is anticipated in West Africa and rains have been positive for crops lately. Mostly dry conditions in Ivory Coast’s cocoa-growing regions are reported now. 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 and the lack of demand is expected to continue. Weak demand has led to a build-up on unsold supplies in both Ivory Coast and Ghana, while the prospect of another global surplus in 2026/27 are real. Cocoa demand has fallen sharply after prices nearly tripled in 2024, prompting chocolate makers to reformulate ingredients and shrink the size of their bars.
Overnight News:
Chart Trends: Trends in New York are down. Support is at 3840, 3720, and 3600 March, with resistance at 4490, 4970, and 5180 March. Trends in London are mixed to down. Support is at 2720, 2660, and 2600 March, with resistance at 3660, 3780, and 4030 March.

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