ADMIS News
COCOA
Cocoa continues to see volatile price action, but the market has risen above all 3 major moving averages for the first time since mid-March. A positive shift in global risk sentiment has benefited the cocoa market as it can help to improve near-term demand prospects.
Hook reversal from overbought status; correction ahead
COFFEE
The sweeping reversal is a short-term negative force. The outlook for lower supply and improving demand remains intact, so coffee prices should be fairly well supported on a near-term pullback. July coffee reached a new 1-year high yesterday before the lower close.
COTTON
Rain in Lubbock, Texas has offered a reprieve to the West Texas crop, and this has turned the near-term picture negative for new crop cotton. The 1-5-day forecast calls for 0.50 inches to as much as 2.5 inches in the western half of the state, except for the Panhandle, which will see maximum amounts of 0.5 inches.
SUGAR
Sugar’s Tuesday/Thursday trading range of 1.36 cents was larger than the entire monthly ranges in November, December or January which underscores the flare-up of volatility in the market. A potential bullish supply outlook along with carryover support from a key outside market should help sugar prices hold support on a corrective break.
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