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Another Cold Night For Arabica Coffee


Cocoa prices remain far below their 3 major moving averages, but they have put together back-to-back positive daily results for only the second time during July. If global risk sentiment continues to mend, cocoa can extend a recovery bounce.


Another cold night for Brazilian Arabica growing areas added to this week’s frost damage, and that gave a significant boost to the coffee market as it is likely to further reduce their upcoming 2022/23 “on-year” coffee crop. Brazilian coffee trees have dealt with very dry conditions since the second half of 2020 and may have another La Nina to contend with later this year, so there was little room for any additional negative weather conditions.


December cotton closed higher yesterday after spending the day inside Tuesday’s range. The dollar was weaker, which is supportive to cotton. Furthermore, a potential outside day lower in the September Dollar Index is a negative technical development for the index, which could ultimately lend support to cotton.


While sugar has been impacted by weather issues in Brazil, the market has faced headwinds from recent weakness in key outside markets. Now that those outside markets are regaining their strength, sugar can extend its recovery move.

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.

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