ADMIS News
COCOA
Cocoa continues to receive bullish supply news that has helped to fuel its January recovery move. In front of this week’s critical demand-side news, however, a negative shift in global risk sentiment has put some brakes on upside momentum. A sharp selloff in the Eurocurrency put carryover pressure on the cocoa market as that could make it more difficult for Euro zone grinders to acquire near-term supplies.
COFFEE
While coffee prices continue to see coiling action, they have closed above their 50-day moving average since the first session of January. While a negative shift in global risk sentiment has been a source of pressure, coffee continues to receive bullish supply/demand news that should help to keep the market well supported on near-term pullbacks.
COTTON
March cotton broke out to the upside this week and remains in a steep uptrend. This was despite a rally in the dollar and a steep selloff in the stock market. A sharply higher crude oil market lent support.
SUGAR
Sugar prices have rallied more than 100 points (up 6.0%) from Monday’s low as key outside markets remain a source of carryover support. With a bullish supply/demand outlook added to the mix, and sugar should extend its recovery move. Crude oil and RBOB gasoline extended their rally into new multi-year high ground, which provided sugar prices with a significant boost.
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