Explore Special Offers & White Papers from AFS

Demand Takes Center Stage in Cotton


Although there was a positive turnaround in global risk sentiment, near-term demand concerns remain a front-and-center issue for many commodity markets. Cocoa prices may be into “bargain” price territory now, but will need more clarity on the Omicron COVID variant in order to sustain a recovery move.


Coffee had a sizable monthly gain and quarterly gain going into the final 2 sessions of November due to bullish supply developments with most of the largest Arabica-producing nations. The near-term outlook for out-of-home consumption remains unclear during the early stages of the Omicron COVID variant, however, and that has put coffee prices on the defensive.


March cotton closed moderately lower yesterday after spending the day inside Friday’s wide range. The market broke lower on the Covid news on Friday and did little to retrace that move on Monday. With the US harvest mostly complete, demand takes center stage in the cotton market, and with Covid offering a new hiccup in demand expectations and the market just last week reaching new contract highs, the selloff is not surprising.


While global risk sentiment and its key outside markets had a positive start to the week, sugar prices were unable to benefit and are now on-course for a third negative monthly result in a row. With a sizable net spec long position, sugar remains vulnerable to a wave of long liquidation.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from Archer Financial Services

Get Started

Contact Us Today