ADMIS News
COCOA
Cocoa finished last week on the defensive, as prices fell nearly 100 points from Thursday’s 1 1/2 week high to an 8-month low. Open interest has reached a 13-month high. With technical indicators reaching oversold levels and prices falling into bargain territory, cocoa may be closing in on a near-term low.
COFFEE
Coffee’s change in fortune since the start of this month has taken prices well below their recent highs. Friday’s close was the first below the 50-day moving average since early April. With bearish near-term supply developments in Brazil weighing on prices, the market is likely to see further downside action early this week.
COTTON
December cotton gapped higher overnight and came close to testing the June 11 high. There are concerns that the heavy rains that are expected to reach the southeastern US when Tropical Storm Elsa makes landfall in Florida early tomorrow could damage crops. In just two and a half sessions, the market has recovered all the losses it incurred in the aftermath of last Wednesday’s USDA Acreage Report.
SUGAR
With carryover support from the energy markets, sugar could reach a new multi-year high early this week. October sugar finished Friday moderate gain, and it was higher again overnight. It finished last week with a gain of +4.9% after another night of frost for cane-growing regions in Brazil’s Center-South on Thursday provided support.
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