ADMIS News
COCOA
While the market received some badly-needed positive demand-side news, cocoa was also strengthened by bullish developments from West Africa. The market has nearly recovered Monday’s sizable loss, and should benefit if global risk sentiment continues to improve.
COFFEE
Coffee prices have held within a 9 cent range over the past 2 weeks as near-term demand concerns and sluggish global risk sentiment has kept the market from maintaining an uptrend. A professor at Brazil’s Federal University of Lavras said that their nation’s upcoming 2 coffee crops (2022/23 and 2023/24) will be negatively impacted by drought and frost damage, and that helped to underpin prices.
COTTON
Upside looks limited and harvest to get more active. December cotton was up for the second day in a row yesterday and the market is higher this morning, but was still confined to Monday’s big range down move. Traders cited mill buying in the aftermath of Monday’s selloff as a source of support. The dollar was up sharply, which may have limited the gains in cotton.
SUGAR
If key outside markets and global risk sentiment can maintain a positive tone, sugar can extend this current recovery move. Global market anxiety was dialed back following a positive start to their holiday-shortened week for Chinese equities, and that provided sugar with an early boost as this can shore up global demand prospects during the fourth quarter.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
