ADMIS News
COCOA
Cocoa may have a bearish near-term supply/demand outlook, but it has continued to stay clear of this week’s lows and the 2021 low from early May. As travel begins to open up in Europe and North America, demand prospects should improve which in turn will help cocoa prices.
COFFEE
Since a rally to a new multi-year high at the start of June, coffee prices have had trouble sustaining upside momentum and are on-track for a sizable monthly loss. The market found support this week after retesting the late May lows and its 50-day moving average, and that could be an early sign that coffee has found a near-term floor.
COTTON
The market remains in a consolidation but continues to show higher highs since the late March low. A further advance for December cotton and a close above 86.54 would leave 90.45 as next upside target. Open interest is down to lowest level since August 2020. The market drew some support from concerns that the heavy rains in the Delta over the last couple of days have damaged the crop there. More rains are expected, raising concerns about flooding fields.
SUGAR
Sugar continues to have a bullish longer-term supply outlook and carryover support from key outside markets, but it has had trouble sustaining upside momentum. This year’s India monsoon rainfall has been larger than normal, which has pressured the sugar market early this week as that can benefit their upcoming 2021/22 and 2022/23 cane crops.
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