Explore Special Offers & White Papers from ADMIS

Sweeping Key Reversal in Cotton


Cocoa prices continue to face near-term demand concerns, but may find an improved outlook going into the second quarter. The market continues to receive bullish supply developments which can help cocoa maintain upside momentum.


While the market continues to have a bullish production outlook, a change in the flow of supply to major consuming nations may pressure coffee prices. A pullback in the Brazilian currency put carryover pressure on the coffee market as that may ease pressure on Brazil’s farmers to market their remaining near-term supply.


May cotton traded to new contract high yesterday for the fifth time in the past seven sessions and traded to its highest level in a decade. The market is up this morning but still an inside trading day. The market is being driven higher by strong demand for old crop and concerns over dry conditions in Texas, but conditions are getting volatile.


Sugar prices were unable to extend a 3-session winning streak, but remain on-track for sizable monthly and quarterly gains. While this may leave the market vulnerable to a technical correction, sugar continues to find support from bullish supply/demand developments. A sharp selloff in energy prices put considerable carryover pressure on the sugar market as that may weaken near-term ethanol demand prospects.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started