ADMIS News
COCOA FUTURES
After rallying more than 140 points above last week’s low, cocoa’s recovery move appears to have run out of near-term steam. A positive tone to major Euro zone and US equity markets, as well as sizable gains in the Eurocurrency and British Pound provided carryover support to the cocoa market, as they can help to soothe near-term demand concerns in Europe and North America.
COFFEE FUTURES
Although the market remains vulnerable to a correction, recent bullish supply/demand developments should help to underpin coffee prices. September coffee extended its recovery move to a new 3-month high yesterday but closed lower. Production issues in Brazil and Colombia continue to provide coffee with underlying support, as both nations are feeling the negative effects of the La Nina weather event.
COTTON FUTURES
July cotton closed sharply higher yesterday with an outside reversal day higher after the trading to its lowest level since April 25. December cotton closed sharply higher after trading to its lowest level since April 8th. The dollar was sharply lower, and crude oil and equities were higher, which is all supportive to cotton. Cash cotton traders noted heavy mill buying in response to the recent selloff. Widespread drought conditions continued in western portions of Oklahoma, Texas, southern Texas, and southern Louisiana this week, though some improvements were noted in Texas and Oklahoma, according to the weekly Drought Monitor.
SUGAR FUTURES
Sugar prices have held their ground within their recent consolidation zone even as bearish Asian supply developments continue to weigh on the market. With carryover support from key outside markets, however, sugar should remain well supported on a near-term pullback. October sugar continued to see choppy action as it reached a 2 1/2 week low before finishing Thursday’s trading session with a mild loss.
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