ADMIS News
COCOA
Cocoa prices are now on-track for a negative weekly reversal following a 2-day losing streak as they have run out of upside momentum. However, a sizable rebound from Thursday’s early low indicates that near-term pullbacks are still being viewed as buying opportunities.
COFFEE
Bullish supply factors combined with a positive longer-term demand outlook has helped coffee prices to rise more than 76% in value since the end of 2020. This has led to a sizable increase in coffee’s net spec long position, and recent developments have left coffee increasingly vulnerable to additional long liquidation.
COTTON
The market bottomed early yesterday ahead the weekly export sales report and rallied in the wake of the supply/demand report. Both reports were on the bullish end of expectations. However, the Chinese commerce ministry said that China opposes the legislation passed by the US House of Representatives to ban imports from Xinjiang over concerns about forced labor and will adopt necessary countermeasure to safeguard its interest. This could have the bulls concerned about US cotton exports to China.
SUGAR
Sugar prices were unable to build onto a 5-session winning streak, but they have lifted well above last week’s lows and are on-track for a sizable weekly gain. While they may be pressured by sluggish outside markets, sugar should remain well supported on a near-term pullback. A pullback in energy prices put carryover pressure on the sugar market as that may weaken near-term ethanol demand prospects, but tightening supplies in the US and Latin America could keep gasoline at relatively high price levels which will make ethanol more cost-effective to use for fuel.
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