ADMIS News
COCOA
Cocoa prices are down for the month and quarter and are approaching a retest of the 2021 low from early May. With the likelihood of a global demand rebound over the second half of this year, however, cocoa prices are now well into “bargain” territory and may be closing in on a low.
COFFEE
After reaching a multi-year high at the start of June, coffee prices have been on the defensive as the “risk off” mood throughout commodity market fueled a corrective break. With a bullish supply outlook providing support, a positive turnaround at the end of last week could indicate that coffee has found a near-term low.
COTTON
The cotton market has seen coiling price action over the past 4 sessions as December cotton closed higher on Friday as it stayed within Thursday’s big range down. The cotton market apparently disregarded a third straight sizable gain and a new 2 1/2 month high in the dollar, and focused instead on potential weather problems, strength in the grain markets, and the possibility that US cotton acreage could come in lower than current estimates. Weather outlook may support and hold minor uptrend ahead.
SUGAR
With a sizable net spec long position, sugar had plenty of fuel for additional long liquidation during the post-FOMC “risk off” mood seen in many commodities. Key outside markets remain close to their recent highs while Brazilian production should see a sizable decline from last season, both of which can help sugar prices find their footing.
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.
