Cocoa Futures Probing For Low
Cocoa prices were able to break a 5-session losing streak, but may have trouble extending a recovery move unless outside forces turn more positive. Unless the market can see near-term demand concerns soothed, cocoa is likely to fall back on the defensive.
Coffee prices have been resilient following Monday’s wide-sweeping outside-day down, but a negative shift in global risk sentiment may keep sellers active. While it continues to have a bullish supply outlook that can provide underlying support, coffee may be vulnerable to additional long liquidation.
In just nine trading sessions, March cotton is already down as much as 12.4% as questionable demand ahead, combined with a long liquidation selling trend from speculators helped to pressure.
Sugar prices were able to break a 4-session losing streak, but events after the close put the market back on the defensive with a break to the lowest level since August 5th. Unless there is a significant turnaround in global risk sentiment, sugar could be heading for a retest of its mid-August lows.
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