ADMIS News
COCOA FUTURES
While cocoa prices remain on-track for their third monthly decline over the past 4 months, they have lifted well clear of last Wednesday’s 5 1/2 month low. Near-term demand prospects may remain a concern for the market, but cocoa is showing early signs that a longer-term low may be in. For the week, September cocoa finished with a gain of 39 points (up 1.6%) which was the first positive weekly result since early April. Stronger European and US equity markets provided cocoa with carryover support.
COFFEE FUTURES
Coffee prices are finishing the month near the highest level of the month which was also their first close above all 3 major moving averages since early April. If global risk sentiment continues to mend, coffee could remain in a short-term uptrend. For the week, September coffee finished with a gain of 13.70 cents (up 6.3%) which was a third positive weekly result in a row. Production issues in Brazil and Colombia continue to provide underlying support, as those 2 nations combined account for more than half of global Arabica production.
COTTON FUTURES
July cotton closed lower on Friday after trading to its lowest level since April 27. The market closed 119 points lower on the week. December cotton also closed lower. The dollar closed weaker and the stock market and crude oil higher. This should have been supportive to cotton, but the moves were apparently not dramatic enough to spark much reaction. The 1-5-day forecast calls for heavy rainfall across Oklahoma and in the Texas Panhandle with lighter amounts in west Texas. This is not enough to relieve drought, but there seems to be a pattern of increased rainfall relative to earlier in the season.
SUGAR FUTURES
Sugar prices have been unable to extend their mid-May rally for several weeks, but remain above their 3 major moving averages and on-track for a sizable monthly gain. With positive global risk sentiment and stronger key outside markets providing support, sugar can extend its recovery move. For the week, October sugar finished with a loss of 32 ticks (1.6%) which was a first negative weekly result over the past 4 weeks. The prospect of record high production and exports in India this season weighed on the sugar market.
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