ADMIS News
COCOA
Cocoa’s recovery move has run out of steam as near-term demand concerns continue to shadow the market. While the longer-term demand outlook is positive, cocoa may consolidate last week’s bounce. The British Pound rallied sharply due to renewed optimism that a Brexit deal will be reached by year-end, and that provided cocoa ith early carryover support as it encouraged arbitrage buying of New York cocoa versus the London cocoa contract that is denominated in Pounds.
COFFEE
Coffee has risen more than 9.00 cents (up 7.8%) over the past 3 sessions as traders see lower production and improving demand for 2021. There were more forecasts for Brazil’s 2021/22 coffee production to have a sizable decline from this season, with Rabobank on the lower end of estimates by calling for a 15% decline from this season.
COTTON
The cotton market remains in a short-term uptrend. March cotton resumed its uptrend yesterday by trading to its highest level since December 2018 and making a new high close for the move. The dollar fell to its lowest level since April 2018, and this was supportive to cotton as it makes US cotton more competitive on the world market.
SUGAR
Unless it can find additional carryover strength from its key outside markets, sugar could see a sizable downside long liquidation move ahead. March sugar reached a new 6 1/2 week low. Brazil’s 2020/21 sugar production is more than 11.5 million tonnes ahead of last season’s pace in the latest Unica supply report, which should lead to record Brazilian sugar exports this season and this remains a major source of pressure.
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