Explore Special Offers & White Papers from ADMIS

Open Interest Decline in Cotton


Cocoa prices continue to be pressured by demand concerns, but will have fresh quarterly grindings data to digest later this week. With global risk sentiment turning positive, cocoa may be able to turn up. Above-average rainfall over West African growing regions last week has been a source of pressure.


Coffee prices have not posted a positive daily result in over a week, but they continue to stay well clear of the March lows. Although the market will find support from bullish supply developments, coffee may need to see more signs of improving global demand in order to extend a recovery move.


July cotton sold off sharply and traded to its lowest level since breaking out to the upside last Wednesday. The dollar was higher and crude oil was lower, which was negative to cotton. Grain markets were down as well, which undercut support for cotton. The IMF stated that the lockdowns in China could cause new bottlenecks in the global supply chains. This raises questions about future cotton export sales because China has been the biggest buyer of US cotton this year.


With a key outside market taking a negative shift in tone, sugar could see further downside follow-through before it can find its footing. A severe pullback in crude oil and RBOB gasoline prices was a notable source of carryover pressure. In addition, expectations that India’s sugar production will reach a record high this season also weighed on sugar 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