Explore Special Offers & White Papers from AFS

New Contract Highs For Dec Cotton


Cocoa prices remain near the bottom end of their May downdraft, due in large part to near-term demand concerns that have been a source of pressure on the market for over 2 years. With bullish supply-side developments providing support, cocoa has a good chance of extending a recovery move.


The coffee market gave back a good portion of the gains on Thursday and Friday, due in part to weakness in the Brazilian currency which has lost more than 10% in value since mid-April. For the week, July coffee finished with a gain of 3.45 cents (up 1.7%) which broke a 2-week losing streak and was a positive weekly reversal from Tuesday’s 6 1/2 month low. It has been weather issues with major South American Arabica producers have helped to lift coffee prices well above the recent lows.


July cotton closed near unchanged on Friday after spending the day inside Thursday’s range. December cotton continued its gains in the wake of the USDA report, which showed a drop in US production for 2022/23 and the lowest ending stocks since 2016/17. December cotton pushed into new contract highs today. The US crop is barely in the ground, and traders are very concerned about this year’s prospects, particularly because of the ongoing drought situation in west Texas.


Sugar’s abrupt turnaround at the end of last week recovered a sizable portion of the market’s losses during its April/May pullback. Although strength in key outside markets continues to be a major factor, sugar has seen bullish supply development that can fuel an extended recovery move. Crude oil and RBOB gasoline extended their recovery move which in turn provided the sugar market with carryover support.

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