Explore Special Offers & White Papers from ADMIS

Outside-day Down Bearish Development

COCOA

Cocoa prices are having a volatile start to the second quarter, but continue having trouble getting past near-term demand concerns. Although there have been bullish developments on the supply side of the market, cocoa may see further downside price action due to bearish demand concerns. A large selloff in the Eurocurrency put early carryover pressure on the cocoa market, as Europe accounts for over one-third of global cocoa processing without a domestic source for beans.

COFFEE

Coffee continues to push higher with the market up to the highest level since March 9th. While there may be some questions on near-term demand, coffee has the bullish supply set-up to move further to the upside. The market has moved up for the fifth positive daily result in a row.

COTTON

May cotton rallied yesterday for the highest closed since March 30. The market drew support from higher crude oil prices and gains in the equity markets. Wheat, corn, and soybeans were also up on concerns Black Sea region supplies will be interrupted, and this may have lent support to cotton as well. Worsening drought conditions in West Texas and Oklahoma continue to lend support.

SUGAR

While it received plenty of carryover support from key outside markets, sugar prices have broken out of their recent consolidation zone to the upside. Sugar was able to overcome bearish supply news as well, and that can help prices maintain upside momentum this week. May sugar rallied to a new 4-week high.

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