ADMIS News
COCOA
While cocoa was unable to avoid a tenth negative daily result over the past 12 sessions, the market was able to find support near the late December/early January lows. Global demand concerns may continue to be a source of pressure, but cocoa prices are showing early signs that they are closing in on a near-term low.
COFFEE
For the second time in three sessions, coffee prices have followed a sharp selloff with a recovery move. While the market remains vulnerable to additional long liquidation, coffee should be closing in on a near-term low. Indications that Russia’s invasion of Ukraine could disrupt shipments of fertilizers to Brazil provided a boost to coffee prices, as they provide 69% of Brazil’s fertilizer imports.
COTTON
May cotton closed sharply higher on the session yesterday after breaking out of a two-day consolidation and trading to its highest level since Thursday when it put in an outside reversal lower. Corn, wheat, and crude oil all traded sharply higher off the Russia/Ukraine war, and this lent support to cotton as well.
SUGAR
Following last week’s failure, sugar prices have again broken out of their recent consolidation zone to the upside. While near-term demand remains uncertain, sugar is in a better position to extend a recovery move. Huge rallies up to multi-year highs in both crude oil and RBOB gasoline provided carryover support to the sugar market as they should help to strengthen ethanol demand in Brazil and India.
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