ADMIS News
COCOA
Cocoa prices were able to shake off a negative shift in global risk sentiment to extend their winning streak to 3 sessions on Friday. While near-term demand remains a front and center issue, cocoa is showing more signs that a longer-term low may be in. For the week, March cocoa finished with a gain of 71 points (up 3.0%) which was a third positive weekly result over the past 4 weeks as well as a positive
COFFEE
Significant supply issues from many of the world’s major-producing nations has kept coffee within striking distance of new multi-year highs. For the week, March coffee finished with a gain of 0.40 cent (up 0.2%) which was a fourth positive weekly result in a row. Front month London Robusta coffee reached their highest levels since August 2011, and that provided support to New York Arabica coffee futures.
COTTON
March cotton closed higher on Friday for the first positive daily result since the session before Thanksgiving. There were reports of mills taking advantage of the recent price break and putting in orders to buy. However, the market gave up most of its gains by end of the session, and the market closed just slightly higher on the day. Talk of a bumper crop in northwest China this year has added to the more negative tone for the market this year.
SUGAR
Since the US Thanksgiving holiday, sugar prices have moved sharply to the downside as they reached a four-month low on December 2. With the market well below its November highs, sugar could see a significant recovery over the next few weeks; especially if the impact of the new virus strain is less than believed. For the week, however, March sugar finished with a loss of 60 ticks (down 3.1%) which was a third negative weekly result in a row.
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