ADMIS News
COCOA
December cocoa’s coiling price action has been tightening. With increasing concern over Asian demand prospects shadowing the market, cocoa will be vulnerable to a downside breakout move early this week. For the week, December cocoa finished with a gain of 62 points (up 2.4%) which was a sixth positive weekly result over the past 8 weeks. A flare-up of Chinese market risk anxiety weighed on cocoa prices as that could weaken Asian fourth quarter demand prospects.
COFFEE
In spite of a bullish longer-term supply outlook, coffee has had trouble sustaining upside momentum during September as global demand prospects have become an area of concern. If global risk sentiment can rebound, coffee price should be able to lift clear of last week’s lows.
COTTON
The cotton market feels top-heavy, and with its very high open interest and the outlook for increasing supply just ahead, it looks vulnerable to a significant downside correction. If the trade senses economic problems in China, sellers could become active. Harvest pressure in the US could become a dominant theme in the next few weeks. Cotton crop conditions improved to 64% good/excellent for the week ending September 12, up from 45% a year ago and a 10-year average of 45%.
SUGAR
Bullish supply-side developments in Brazil lifted sugar prices during August to their highest levels in 4 1/2 years, but they lost strength this month due to volatile key outside markets. March sugar extended last week’s pullback as it finished Friday’s trading session with a moderate loss and a second negative daily result in a row.
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