ADMIS News
COCOA
Cocoa’s demand concerns remain a front-and-center issue as prices slide further down into multi-year low territory. The market is now technically oversold with a bullish supply outlook, however, and that can help cocoa to find a near-term low.
COFFEE
Coffee prices have been able to overcome negative global risk sentiment and lift clear of their Monday lows. Although near-term demand concerns will continue to weigh on prices, coffee may be able to extend a recovery move.
COTTON
Cotton prices were lower yesterday, pressured by weaker equity and crude oil markets and a strong dollar. The risk-off tone this week has affected commodity markets in general. The weather outlook looks harsh for the cotton growing regions, with the 6-10 and 8-14-day forecasts calling for much above normal temperatures and below normal precipitation from Texas to the southeast.
SUGAR
Sugar prices continue to be pressure by key outside markets that are leading to a bearish shift in the Brazil Center-South supply outlook. While this is likely to result in further downside price action, sugar may be closing in on a near-term low. A bill to limit state taxes on fuels is making progress in the Brazilian Senate, which pressured the sugar market as that could weaken their domestic ethanol demand.
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