ADMIS News
COCOA
In spite of choppy intra-day action and negative global risk sentiment, cocoa prices have held within a fairly tight range well above their April lows. In order to post a second positive weekly result in a row, cocoa will need to see key outside markets regain their strength in order to dampen near-term demand concerns.
COFFEE
After more than a week of choppy action, coffee was able to extend its April rally in spite of ongoing European near-term demand concerns. If there is a positive turnaround in global risk sentiment, coffee is in position to test the February highs. The Brazilian currency rose by more than 1.5% and reached a new 4-week high, and the recent strength in that currency should ease pressure on Brazil’s farmers to market their remaining 2020/21 coffee supplies.
COTTON
December cotton closed slightly higher after trading to its highest level since March 18 yesterday but failed to close over 83.95 which represents significant resistance. Wheat, corn, and soybeans all shot sharply higher to new contract highs on weather concerns and expectations for very tight supply this coming year. Cotton is caught in bidding war for acreage against those crops, but it does not seem to be fighting too hard.
SUGAR
After gaining 14% in value over the past 14 sessions, sugar’s April rally is showing signs of running out of near-term steam. While this leaves the market vulnerable to profit-taking and long liquidation, a still bullish supply outlook should have sugar prices well supported on a near-term pullback.
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