ADMIS News
COCOA
Cocoa prices continued to be pressured by near-term demand concerns that could remain a front-and-center issue as long as global shipping containers remain in high demand and short supply. While the 2021/22 outlook remains uncertain more than a month into the season, the positive shift in demand prospects could help cocoa prices find some support.
COFFEE
Coffee prices have made a strong start to November and appear to be heading for a retest of their mid-October highs. With the market finding support from bullish supply developments, coffee should remain well supported.
Reports that heavy rainfall may cut Colombia’s production this year by 500,000 to 1 million bags provided an additional boost to coffee prices, as a new La Nina weather event could bring back wetter than normal conditions to that region through the first quarter of 2022.
COTTON
December cotton closed higher yesterday following Tuesday’s selloff from a new contract high. The market has made some wild swing in the past three sessions, and it appears to be consolidating after Monday’s breakout rally. Cotton also benefited from outside market forces.
SUGAR
Sugar continues to face headwinds from key outside markets that have kept prices from sustaining a rally since mid-August. Bullish supply developments in Brazil continue to provide underlying support, however, and that should help to keep sugar price from retesting their mid-October lows.
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