Explore Special Offers & White Papers from ADMIS

Volatile Price Action in Cocoa

COCOA

Cocoa prices continue to see volatile price action, but they are staying clear of Monday’s 4 1/2 month low for two sessions in a row. With the market able to do that in spite of ongoing concern with European demand could be an early sign that cocoa has found a better support level.

COFFEE

With a bullish supply outlook, coffee remains in position to turn higher. An early rally to a 2-week high in the Brazilian currency provided coffee with carryover support, but then had a negative turnaround which pressured the coffee market late in the day.

COTTON

The cotton market seems to have the short-term fundamentals to move higher but uncertainty on politics and China demand are forces which could limit buying and spark more selling. The June dollar index recovered after probing to its lowest level since March 23. Traders have concerns about the ongoing drought conditions in west Texas.

SUGAR

Consistent carryover support from its key outside markets has been difficult to sustain. There have been recent bullish supply/demand developments which are helping to underpin prices, however, and that should help sugar to remain well supported on pullbacks.

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