ADMIS News
COCOA
July cocoa closed lower yesterday for a fifth negative daily result in a row. Both the Eurocurrency and British Pound remain close to multi-year lows after they saw moderate pullbacks on Tuesday, and that has been a source of carryover pressure on the cocoa market. Demand concerns remain a front and center issue for the cocoa market, particularly in Asia where ongoing COVID restriction are likely to diminish Chinese chocolate consumption.
COFFEE
While global risk appetites have seen modest improvement, coffee’s near-term demand concerns continue to weigh on the market. If a “risk on” mood redevelops, however, a bullish supply outlook can help coffee prices see a recovery move. While it rebounded from an 8-week low with a 0.5% daily gain, the Brazilian currency remains more than 10% below its April highs, and that recent currency weakness continues to put carryover pressure on the coffee market.
COTTON
July cotton closed near unchanged yesterday after spending the day in the bottom half of Monday’s range. The trade is apparently caught between the bullishness of the weather in Texas and concerns that the Chinese economy will be severely damaged by their Covid lockdowns. A modest recovery in equity markets lent support, but that was offset by modest gains in the dollar and lower crude oil prices.
SUGAR
Unless it can find fresh carryover support from key outside markets, sugar could see more selling pressure. Crude oil prices extended their pullback while the Brazilian currency remains more than 10% below its recent high, which put carryover pressure on sugar prices. The Brazilian trade group Unica released their latest supply report which showed Center-South sugar production during the second half of April came in at 934,000 tonnes.
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