COCOA
The sweeping reversal for March cocoa after hitting key support at 2466 is a bullish technical development. This leaves the market vulnerable to a resumption of the uptrend; especially if resistance is violated.
COFFEE
While coffee has been pressured by near-term demand concerns, the market has been finding supply-side support that has helped to keep prices in proximity to last week’s 3-month high. Coffee should remain well supported on near-term pullbacks.
COTTON
March cotton sold off sharply yesterday after failing to take out last week’s highs. Worries about reports of a new, more contagious variant of the coronavirus has fueled traders’ concerns about demand.
SUGAR
While sugar remains at the lower end of its November/December downtrend, the market has been able to grind its way higher over the past week. A “risk off” mood in global markets led to sizable losses in energy prices which put significant carryover pressure on the sugar market as that may dampen near-term Brazilian ethanol demand prospects.
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