ADMIS News
COTTON
December cotton traded to its highest level since February 21st yesterday and closed higher on the day, but well off of its highs. The trade is waiting to see what kind of damage Hurricane Delta did to the crops in the US Delta and southeast, but traders will have to wait until this afternoon for the weekly Crop Progress report, which might indicate a sharp drop in conditions in the delta.
COCOA
Cocoa prices have stabilized in front of key reports this week as the market received carryover support from outside markets and improving global risk sentiment. While demand prospects remain the key issue for the market, cocoa is finding near-term bullish supply news that can underpin prices.
COFFEE
While there have been bullish near-term supply developments, coffee may see a downside correction over the next few sessions. Reports of new coronavirus lockdowns in Europe have pressured coffee prices as Europe had comparatively strong demand over the past few months.
SUGAR
With sizable production increases from Brazil and India weighing on prices, sugar could see extensive downside follow-through from the sweeping reversal from a new 7-month high yesterday. Energy prices followed through on last Friday’s reversal with sizable losses that put carryover pressure on the sugar market as it should keep Brazilian domestic ethanol demand at subdued levels.
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