ADMIS News
COCOA FUTURES
Cocoa’s demand concerns remain a major source of pressure, but they have compounded by rising inflation and slumping global risk sentiment. In spite of bullish supply developments, cocoa prices may have further downside to go before they find their footing. September cocoa started the week with a gap-lower opening and reached a multi-year low before finishing Monday’s trading session with a heavy loss. Global risk sentiment continues to deteriorate, and that has weighed on the cocoa market as that will diminish its near-term demand outlook.
COFFEE FUTURES
Coffee prices have fallen below their early June consolidation zone as near-term demand concerns have become a front-and-center issue for the market. While sluggish global risk sentiment may keep the market under pressure, a bullish supply outlook can help coffee prices find their footing fairly soon. The negative shift in global risk sentiment put pressure on coffee prices as that in combination with higher consumer prices on many items may diminish out-of-home consumption in many areas of the world.
COTTON FUTURES
Texas crops are already in poor condition, and the forecast for the next few weeks looks like crop conditions will continue to deteriorate, with the biggest concern for the non-irrigated acres in Texas. While there has been recent moisture, traders see the 111 degree temperatures over the weekend as a factor which has already dried out topsoil moisture. While demand factors are quite negative, and the market traded to a four-day low on Monday, December cotton managed to recover on the day and closed higher on the session which is a positive technical development.
SUGAR FUTURES
Sugar prices have been unable to put any brakes on this month’s selloff, but the market is holding up fairly well given the combination of negative factors that it is encountering. Sluggish RBOB gasoline prices put carryover pressure on the sugar market as they may weaken near-term ethanol demand in both Brazil and India.
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