ADMIS News
COCOA
Cocoa prices have posted a “higher high” each session this week so far as the market continues to move further away from its early December lows. While near-term demand remains a concern, cocoa should remain well supported on a near-term pullback.
COFFEE
While the market is vulnerable to year-end profit-taking and long liquidation, coffee should continue to be well supported on near-term pullbacks. Concern that the spread of the Omicron COVID variant could lead to reductions in restaurant and retail shop consumption levels has weighed on the coffee market this week, as that loss of demand is unlikely to be fully offset by increased at-home consumption.
COTTON
March cotton broke out if it’s recent trading range and closed at its highest level since November 30, trading to limit-up at times. The market is giving back a huge portion of the rally overnight as weakness in the stock market has traders nervous over the demand outlook. The dollar fell to its lowest level since December 2 at one point, which is supportive to cotton.
SUGAR
While energy prices are starting to work in its favor, sugar will need to see a rebound in global risk sentiment to offset near-term bearish supply developments. A rebound in crude oil and RBOB gasoline prices provided carryover support to the sugar market as that can help to shore up ethanol demand in Brazil and India.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
