ADMIS News
COCOA
Cocoa prices have found their footing in spite of negative global risk sentiment and carryover pressure from key outside markets. The hook reversal is a positive technical development. With two sessions left to go, cocoa prices are up 126 points for the third quarter which puts the market on-track for a second positive quarterly result in a row and a fourth positive result over the past 5 quarters.
COFFEE
Coffee prices have risen 16 cents in the last 6 sessions, in spite of sluggish global risk sentiment and a pullback in the Brazilian currency, and are on track for their largest quarterly gain since early in 2014. While this might set the stage for a sizable month-end/quarter-end pullback, coffee continues to have bullish supply factors that should underpin prices.
COTTON
December cotton pushed to a new contract high for the third session in a row this morning, and the market still managed to close sharply higher on the session yesterday even with plenty of short-term bearish forces. The nearby contract has moved to its highest level since November 2011. This is the first time the market has moved above 100 since that time.
SUGAR
Sugar prices are on-track for a sixth positive quarterly result in a row and remain in close proximity to the 4 1/2 year highs in August. While it will continue to have a bullish supply outlook, the negative shift in global risk sentiment and key outside markets could leave sugar vulnerable to profit-taking and additional long liquidation during today and tomorrow’s trading.
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