ADMIS News
COCOA
Cocoa has been unable to find its footing this month, having twice broken below consolidation areas. While the market is now well into bargain territory given what remains a positive long-term demand outlook, it may see further downside action before the end of the month.
COFFEE
The coffee market looks set for a resumption of its uptrend. The recent 1% gain in the Brazilian currency to a new 1-year high provides coffee with carryover support, as this eases pressure on Brazilian farmers to market their supplies. Safras and Mercado estimated that 40% of Brazil’s 2021/22 harvest had been completed by Tuesday.
COTTON
Texas crop may improve but acreage may be down; demand strong. The average pre-report estimate for the June 30 Acreage Report calls for US cotton planted area to come in at 11.856 million acres (range 11.5-12.4 million), which would be down from 12.036 million estimated in March and 12.093 million last year. December cotton closed lower yesterday after spending the day inside Wednesday’s range.
SUGAR
For the first time this month, sugar has put together three positive days in a row, and it is on-track to close higher for the week after posting an eight-week low. With key outside markets and global risk sentiment working in its favor, sugar can extend its recovery move.
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