ADMIS News
COCOA
With more than 460 points in gains coming into the final trading session of November, there was little surprise that cocoa saw end-of-month long liquidation and profit-taking. The market was able to hold its ground before retesting last week’s lows, however, as cocoa continues to have near-term supply uncertainty. Late in the day yesterday, there were reports that Ivory Coast and Ghana were suspending sustainability schemes that involve the US chocolate maker Hershey, and also have withdrawn each nation’s membership from the Cocoa Merchants Association of America.
COFFEE
The market remains in a short-term uptrend. A pullback in the Brazilian currency weighed on the market as it encourages Brazil’s farmers to market their coffee to foreign customers. In addition, reports of increasing COVID-19 cases in the US and new restrictions in areas of the UK weighed on coffee’s near-term demand outlook in both regions.
COTTON
March cotton closed lower yesterday and the market looks set for a more significant downside correction. Traders remained concerned about new coronavirus cases. The market had gained on Friday after a strong export sales report, but trader concerns about demand destruction have been recurring from time to time during the pandemic.
SUGAR
Since posting a negative daily reversal from a multi-year high on November 17th, sugar prices have only seen two positive daily results in 9 session as the market has fallen 115 ticks (down 7.4%). With the market still holding a sizable net spec long position, sugar needs to find fresh carryover support from key outside markets in order to avoid additional long liquidation.
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