ADMIS News
COCOA
With global risk sentiment subdued and fresh coronavirus lockdowns in Europe generating news headlines, a sluggish start to the week for the Eurocurrency and global equity markets could put cocoa prices under early pressure. Ivory Coast political tensions continue to simmer following an outbreak of violence last week, and that increases the possibility of near-term supply bottlenecks over the next month.
COFFEE
Although global demand concerns (particularly for Europe) will remain a front-and-center issue for the market, coffee prices are well into near-term oversold territory now and it will not take much in the way of bullish supply/demand news to trigger a near-term bounce. For the week, December coffee finished with a loss of 1.65 cents (down 1.5%) and a third negative weekly result over the past 4 weeks.
COTTON
The cotton market has coiled up and looks vulnerable to a break, but another tropical storm is likely to hit Louisiana and leave hefty rain totals for the Delta. With the extreme overbought condition, and the surge in virus cases plus a general sense that the market has already priced in some hurricane losses, the market may have put in a short-term peak. The 1-5 day forecast is still a concern with hefty rain totals for the Delta and the southeast US plus even some rain for Texas.
SUGAR
The sugar market does not seem to have the supply fundamentals for a continued bull trend, but fund traders have been active buyers, and the market has remained in a steep uptrend. With the market remaining at near-term overbought levels and with a net spec long position at its largest level for several years, sugar remains vulnerable to long liquidation if support levels are violated. Egypt is tendering to buy 50,000 tons of raw sugar.
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