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More Long Liquidation in Cocoa


While cocoa was finally able to put some brakes on its 3-session pullback, a 75 point pullback from a midsession high will give many longs pause. Unless global risk sentiment can see significant improvement, cocoa will remain vulnerable to long liquidation.


Strength in a key outside market can help coffee prices maintain an uptrend. A more than 1.5% rally in the Brazilian currency to a new 4-month high was a significant source of strength for coffee prices as it eases pressure on Brazil’s farmers to market their near-term supply to foreign customers.


The market remains in a short-term downtrend. Not even a second straight week of respectable USDA export sales reports was able to stem the selling. US cotton export sales for the week ending November 26 came in at 277,863 bales for the 2020/21 (current) marketing year and 21,824 for 2021/22 for a total of 299,687.


Sugar prices have seen a 2-day recovery bounce as outside markets have helped to support. However, the sugar market may need to see a rebound in global risk sentiment as well to expect much more of a bounce.

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.

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