ADMIS News
COCOA
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
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.
COTTON
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.
SUGAR
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.
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