Explore Special Offers & White Papers from ADMIS

Impressive Upside Breakout in Cotton

COCOA

Cocoa prices were unable to complete a positive weekly reversal, but they will start this week more than 80 points above Thursday’s 2 1/2 month low. While near-term demand remains a concern, cocoa has bullish supply developments that can help to underpin prices.

COFFEE

While coffee was unable to complete a positive weekly reversal, it will start this week’s action nearly 10.00 cents above last Tuesday’s 4-month low. Although the market continues to receive bearish news from rising warehouse supply, coffee has a bullish supply outlook that can fuel a recovery move.

COTTON

The market experienced an impressive upside breakout to new contract highs on Friday as commercial buyers were active and the market is up again this morning. May cotton even managed to trade limit up as strong mill buying was noted. Export sales have remained very strong over the past month even with the relatively high price, and this helped to support strong buying. There is a little decent rain in the Panhandle, but only about 1/4 of an inch near Lubbock, Texas and the rest of West Texas for the 1-5 day forecast.

SUGAR

Sugar prices will start this week in a near-term consolidation zone well below their early March highs, but they finished last week’s trading on an upbeat note. Sugar should start to benefit from a bullish production shift over the next few months and from higher energy prices.

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2021 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started