ADMIS News
COCOA
The prospect that Europe and North America can avoid lockdowns and travel restrictions from the Omicron variant should provide a significant boost to cocoa’s demand outlook. While near-term demand remains an area of concern, cocoa is still in good position to extend the December recovery move. Ongoing concern with Omicron COVID cases in Europe weighed on the cocoa market as that region accounts for one-third of all global cocoa grindings without a domestic source for cocoa beans.
COFFEE
If major economies can avoid extensive lockdowns and fresh restrictions for the Omicron COVID variant, that should significantly improve the prospects for global restaurant and retail shop consumption. Coffee prices were able to extend their upside breakout and are on a 4-session winning streak. March coffee was able to reach a new 10-year high.
COTTON
For the monthly USDA supply/demand report on Thursday, the average trade expectation for US 2021/22 cotton ending stocks calls for 3.51 million bales (range 3.20-3.70 million), up from 3.40 million in November’s report. World ending stocks are expected to come in around 86.74 million bales (range 86.00-87.30 million), down from 86.93 million in November. March cotton rallied sharply yesterday after putting in a one-and-a-half-month low last Thursday.
SUGAR
Sugar was able to lift clear of last week’s lows and should benefit from stronger global risk sentiment. If energy markets continue to provide carryover support, sugar can extend its recovery move. Indications that the Omicron COVID variant may be milder than other variants gave a moderate boost to sugar’s near-term demand outlook.
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