ADMIS News
COCOA
While it clearly benefited from the strength in key outside markets, cocoa has also found support from bullish West African supply developments over the last few months. Over the rest of this week, however, near-term demand will return to a front-and-center issue for the market which leaves cocoa vulnerable to a near-term pullback.
COFFEE
The technical action is weak and the market looks vulnerable to long liquidation selling over the near-term. A rebound in the Brazilian currency provided coffee with early underlying support as that eases pressure on Brazil’s farmers to market their remaining 2021/22 supplies. Near-term demand concerns have been fueled by rising warehouse stocks in Europe and the US, and that kept the coffee market on the defensive this week.
COTTON
With a strong recovery in the stock market after the cotton close, and a more threatening weather forecast, the market weakness overnight might be a concern for the bulls. The 6-10 and 8-14 day forecast models show a hotter and drier trend for the West Texas region, and this failed to provide much support.
SUGAR
Sugar was unable to benefit from strength in key outside markets as bearish supply developments in India continue to weigh on prices. As a result, sugar remains vulnerable to additional long liquidation over the near-term. A more than 1% gain in the Brazilian currency provided sugar with carryover support, as that eases pressure on Center-South mills to produce sugar for export.
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