ADMIS News
COCOA
March cocoa followed through on Monday’s daily reversal and remained on the defensive yesterday and pushed down to the lowest level since November 17th. Although there were sizable gains from US and European equities as well as a strong rebound in the British Pound, near-term demand concerns remain a major source of pressure following news that several Euro zone nations are imposing stricter shutdown measures going into the holiday period.
COFFEE
With some early signs of demand-side improvement, coffee should be able to hold its ground near the recent highs. March coffee pushed to a new 3-month high before closing lower yesterday. There is rainfall in the forecast for Brazil’s south Minas Gerais Arabica-growing region over the next week, and that weighed on coffee prices as it should benefit their upcoming 2021/22 crop.
COTTON
The market remains in a solid uptrend. The market has been trending higher since last week’s USDA report showed a smaller US crop and tightening ending stocks for 2020/21. March cotton also hit the initial upside target of 75.49 and closed strong which keeps the charts bullish.
SUGAR
Sugar prices have found their footing before they retested their late October spike low, and have benefited from a positive shift in key outside markets. The market continues to receive bearish supply news, however, and that leaves sugar vulnerable to a sizable downside move.
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