ADMIS News
COCOA
While the market was unable to avoid negative results for the month and quarter, cocoa finished June with 4 sessions in a row that featured a “higher low”. As it starts July and the third quarter, however, cocoa will likely need indications that near-term demand is on the mend in order to sustain a recovery move.
COFFEE
Coffee prices had a downbeat finish to the month, but remains within striking distance of reaching a new 4 1/2 year high. With a bullish supply outlook providing underlying support, coffee could regain and sustain upside momentum. The Brazilian currency extended its pullback to a new 1-week low, which put carryover pressure on the coffee market as that will encourage Brazil’s farmers to market their coffee to foreign customers.
COTTON
December cotton sold off sharply after the release of the US Acreage Report, despite the acreage number coming in below the average trade expectation. The report showed US cotton planted area at 11.719 million acres, which was below the average pre report estimate of 11.856 million and within the expected range of 11.5-12.4 million. This is down from 12.036 million from the March Prospective Plantings report and 12.092 million last year.
SUGAR
Sugar prices remain in a steady short-term uptrend as developments in Brazil reinforced a bullish global supply outlook. If key outside markets can maintain their recent strength, sugar can reach a new multi-year highs.
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