ADMIS News
COCOA
In addition to lukewarm equity markets in Europe and the US, a sharp selloff in the Eurocurrency weighed on cocoa prices yesterday as an extended pullback could make it more difficult for Euro zone grinders to acquire near-term supplies. The Asian near-term demand outlook has replaced Europe as the focus of demand-side concerns, with several nations shifting back into COVID restrictions.
COFFEE
Coffee’s inability to gain further ground Tuesday and Wednesday in spite of a bullish supply outlook and a stronger Brazilian currency left the market vulnerable to a near-term pullback. Unless it can find stronger risk appetites and fresh carryover support, coffee is likely to post a negative weekly key reversal.
COTTON
The higher close yesterday is impressive given the bearish outside market influences and recent rains for West Texas. December cotton closed moderately higher after trading almost to Tuesday’s high. The dollar was up sharply to its highest level since May 14, which undermined support for cotton.
SUGAR
Sugar continues to consolidate and found carryover pressure from key outside markets yesterday and some mildly bearish supply-side news. The market is still higher for the week, however, as a bullish supply outlook should help it stay well supported on any near-term pullback. A pullback from new multi-year highs in crude oil and RBOB gasoline prices put carryover pressure on the sugar market as that may negatively impact Brazilian domestic ethanol demand.
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