ADMIS News
COCOA
Going into the final week of a turbulent July, cocoa prices still have some ways to go in order to post a positive monthly result. With the market on a 4-session winning streak and with global risk sentiment on the mend, cocoa has a good chance to finish the month out on an upbeat note. For the week, September cocoa finished with a gain of 1 point which was nonetheless a positive weekly reversal from Tuesday’s 11-month low.
COFFEE
There are few doubts that last week’s cold weather event will have a significant impact on both Brazilian and world Arabica production during the 2022/23 season. September coffee opened sharply higher on Friday and reached a new multi-year high, but then turned back to the downside and fell more than 22 cents below their early highs (and losing more than 10% in value) before finishing Friday’s trading session with a moderate loss and a wide-sweeping negative daily key reversal. News that the frost may have hit 11% of the total coffee planted area provided an additional boost for the market and traders also see a much smaller crop next year.
COTTON
The inside trading day for December cotton on Friday after a contract high on Thursday is a bit of a warning signal of a near term peak. In addition, the contract high for the week and lower close is considered a key weekly reversal and a bearish technical development.
SUGAR
Although Brazil’s Central-South cane-growing regions did not sustain the level of frost damage last week seen by Brazilian coffee trees, this season’s cane crop was already impacted by very dry growing conditions since last year. While the market appears to be heading for new high ground, sugar will need to get past key supply-side data in order to extend this current recovery move.
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