ADMIS News
COCOA
Cocoa prices are on a 3-session losing streak as they have been pressured by sluggish global risk sentiment and weakness in key outside markets. The market has a bullish supply outlook, but continues to struggle with demand. A negative shift in global risk sentiment combined with a pullback in European and US equity markets helped to pressure cocoa prices as that is likely to weaken global demand prospects in many areas of the world.
COFFEE
Coffee prices have held their ground above the 3 major moving averages since late May and will come into today’s trading on-track for a positive weekly result. ICE exchange coffee stocks fell by 920 bags on Thursday, but that resulted in their lowest total since March which reflects improvement in European near-term demand prospects. In addition, continued production issues in Brazil and Colombia have provided underlying support.
COTTON
Old and new crop cotton rallied sharply yesterday, as traders were encouraged by the weekly export sales report that showed China as an active buyer and traders also remained concerned about the upcoming crop due to the threat of hot and dry weather in Texas and other parts of the cotton belt. For today’s USDA supply/demand report, the average trade expectation for US cotton 2022/23 ending stocks is 3.11 million bales, with a range of expectations from 2.60 million to 4.00 million.
SUGAR
Sugar was able to lift well clear of this week’s lows and is on-track for a positive weekly reversal. October sugar came under early pressure and reached a 4-week low, but held support and bounced. RBOB gasoline posted a sizable gain following news that UK retail gasoline prices reached a record high, and that provided carryover support to the sugar market.
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.
