ADMIS News
COCOA
While it has seen volatile price action during the second quarter, cocoa will start today on-course for a second positive weekly result in a row. A rebound in global risk sentiment strengthened major Euro zone and US equity markets, which in turn provided carryover support to cocoa as they can help to soothe near-term demand concerns in both regions.
COFFEE
Coffee’s combined trading range over the past 3 days is smaller that each of the previous 10 sessions as the market continues to see coiling price action following a more than 43 cent pullback from its multi-year high in late July. However, the prospect that 3 successive Brazilian Arabica crops will negatively be impacted by weather issues should help to underpin coffee prices.
COTTON
December cotton rallied to test the July 28th contract high, and did manage a new contract high close. The lack of much rain in the forecast for West Texas along with solid gains for some of the grain markets helped to support the bounce.
SUGAR
After 3 days of coiling action, sugar’s explosive rally has put the market back to within striking distance of multi-year highs. Energy prices rebounded from 2-week lows into positive territory, which provided significant carryover support to the sugar market as that can help to shore up Brazilian domestic ethanol demand.
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