The U.S. Senate passed legislation Monday to end the government shutdown. Cotton rallied in line with broader macro developments following Friday's consumer sentiment survey, which printed at its weakest level in two years.
While the immediate resolution should support prices, caution is warranted once economic data reporting resumes. We expect emerging weakness in the U.S. economy to test the momentum markets have enjoyed since Liberation Day.
Coffee has traded with extreme volatility heading into First Notice Day for the December contract. Certified stocks continue their historic drawdown, with 150,000 bags expected for December delivery. Unless the Supreme Court moves quickly on its IEEPA ruling, we see little prospect for a fundamental shift in the continue drawdown of Certified stocks.
Weekly Commodity Comment - 11/11
