ADMIS News
COCOA
The technical action is weak and the market may see more selling pressure. The surge in open interest suggests that fund traders are building a larger short position. There is ongoing concern over near-term cocoa demand in many regions of the world as COVID restrictions remain in place, and that helped to turn cocoa prices back to the downside later in the session.
COFFEE
Coffee’s abrupt change in fortune has taken prices well below the multi-year high from the start of June. The market continues to have a bullish supply outlook in spite of recent developments in Brazil, however, so coffee may be able to find its footing soon. A second night in a row with frost conditions spreading into Brazil’s Sao Paolo and Parana states provided coffee with early support.
COTTON
Many areas around West Texas have received more than 2 inches of rain over the last week, and this opens the door for a higher percentage of the Texas cotton plantings to be harvested than normal. Non-irrigated areas could do very well in this environment. Too much rain could be an issue as there is another 1-3 inches in the forecast for the next five days. Conditions look drier after that.
SUGAR
The market may have risen “too far, too fast”. Although it avoided a negative key reversal, sugar may be vulnerable to some technical selling. Reports of frost conditions for a second night in a row over cane-growing regions in Brazil’s Sao Paolo state fueled strong upside momentum in the sugar market.
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