ADMIS News
COCOA
After a 6-session winning streak that saw more than 200 points in gains, cocoa prices were vulnerable to a negative shift in global risk sentiment. However, a “risk on” mood that developed late yesterday may support. A sharp setback in European and US equity markets put carryover pressure on cocoa prices as an extended stock market pullback in both regions could diminish global cocoa demand prospects.
COFFEE
Coffee prices held within the tightest daily trading range in 3 weeks yesterday, but held their ground above Tuesday’s low. With global risk sentiment on the mend, coffee may be well supported.
COTTON
December cotton remains in a steep uptrend and gapped higher yesterday and traded up to new contract highs for the second day in a row and for the seventh time in eight sessions. The market closed sharply higher but well off its highs of the day. Traders cite soaring prices in China that have created arbitrage opportunities for Chinese mills and the Chinese government to buy US cotton.
SUGAR
Sugar’s coiling price action over the past few weeks continues to keep the market above its mid-September low in spite of a negative shift in key outside markets. With a rebound in global risk sentiment, sugar may be able to regain upside momentum.
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