ADMIS News
COCOA FUTURES
With near-term demand prospects remaining a source of concern, a negative shift in global risk sentiment could lead to cocoa prices heading for a retest of last Friday’s 5 1/2 month low. Rain in the forecast for West African growing areas put the cocoa market under pressure, as that is expected to benefit the region’s upcoming mid-crop production.
COFFEE FUTURES
Coffee prices are consolidating after 2 1/2 weeks of volatile action, and are holding their ground well above the early May lows. With a positive turnaround in global risk sentiment helping to soothe near-term demand concerns, the market may be in position to bounce. Concern over near-term demand prospects has weighed on coffee prices with Russia’s invasion of Ukraine casting a shadow over out-of-home consumption in Europe.
COTTON FUTURES
July cotton closed slightly higher yesterday after trading below last week’s lows for a time. This was not very impressive given the sharply lower dollar and a rally in the stock market. The weekly USDA Crop Progress report showed 54% of the US cotton crop was planted as of Sunday, up from 37% the previous week and above the 47% planted last year at this time and above the 10-year average of 52%. Texas was 44% planted versus 30% a week ago, 39% last year and the 10-year average of 41%. The 1-5-day forecast calls for active rainfall across the cotton growing areas. West Texas, which needs it the most, is getting some, but that is not where the bulk of the rain is falling. Still, this may help improve soil conditions in the near term.
SUGAR FUTURES
With key outside markets continuing to provide carryover support, sugar may climb up into new high ground soon. A pullback in energy prices put carryover pressure on the market yesterday. Keep in mind that Brazilian ethanol prices continue to have a sizable discount to Brazil’s gasoline prices, and that should encourage Center-South mills to ramp up their ethanol production at the expense of sugar production.
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