ADMIS News
COCOA
Europe 1st quarter cocoa grind fell 3% from a year ago to 357,815 tons. German first-quarter grind fell 8.1% on the year to 91,482 tons. A Bloomberg survey of analysts, traders and brokers showed a median estimate of a 2% year-over-year decline, which would be roughly 366,150 tonnes which would be the lowest first quarter total since 2018 but their third largest reading for the first quarter since ECA records began in 1999.
COFFEE
Since the holiday weekend at the start of April, coffee prices have only had one negative daily result and have risen 8.40 cents (up 6.8%) in value. Although near-term demand remains an area of concern, bullish supply factors continue to fuel coffee’s upside momentum. The bullish supply outlook for the 2021/22 season is highlighted by a likely 30% or larger decline in Brazil’s output, so seeing Brazil’s March coffee exports fall short of last year’s total could indicate that farmers may be starting to hold back on marketing their remaining supply.
COTTON
The market remains in a short-term uptrend. Cotton drew support from a break in the dollar, which fell to its lowest levels since mid-March. The June Dollar Index broke below previous support at 92.00, and this was viewed as particularly negative for the Index. A weaker dollar makes US cotton export prices more competitive.
SUGAR
With the market receiving bullish supply news from last season’s top-producing nation, sugar can extend this recovery move. Both crude oil and the Brazilian currency were able to put together recovery moves yesterday that provided sugar with carryover support. The Brazilian trade group Unica reported Brazil’s Center-South sugar production during the second half of March was down 23% below last year’s total, providing evidence of a slow start-up to harvesting and crushing.
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