ADMIS News
COCOA
Cocoa prices remains near the lower portion of the 2021 trading range. As focus shifts towards a positive longer-term demand outlook, the market may find some underlying support. While the Eurocurrency posted a sizable loss and European equity markets posted lukewarm results, the prospects for global demand growth once COVID restrictions are relaxed helped the cocoa market to regain some strength.
COFFEE
For the second time this month, coffee prices have broken out of a tight consolidation zone with a sharp upside move. With the market at multi-year highs, coffee should be able to maintain upside momentum over the rest of this week. Diminishing prospects for Brazil’s 2021/22 “off-year” Arabica crop have underscored by the latest forecast from the Brazilian government agency Conab which projects a 31% decline from last season’s output.
COTTON
December cotton closed higher yesterday after falling to its lowest level since Friday. The dollar bounced off Tuesday’s 4 1/2 month low, and this pressured cotton on ideas a stronger dollar hinders US exports. Traders are looking at improving conditions in Texas with a regular pattern of rainfall developing over the past week or so. The 1-5-day forecast calls for very heavy precipitation from in an area from Nebraska to the Texas Panhandle, with lesser amounts spreading southward across Texas.
SUGAR
Sugar prices have been unable to break out above their late May consolidation zone and remain well below the multi-year high seen 2 weeks ago. With increasing near-term demand concerns weighing on the market, bearish supply-side developments may keep sugar on the defensive.
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