ADMIS News
COCOA
July cocoa was higher overnight off some bullish Asian grindings data, but the market came up short of Thursday’s three-week highs. We can expect some demand anxiety as long as Euro zone nations are in shutdown mode, but the market has put together a 5-session winning streak that has lifted prices 5% off their April lows.
COFFEE
July coffee traded to its highest level since March 18 overnight after closing higher for four sessions in a row, but it fell back below unchanged later in the session. At its peak, the market was up 11% from the March 31 low. Sugar could be vulnerable to some end of week profit taking today, but the supply outlook remains bullish, and we would not be surprised to see further gains over the next few weeks.
COTTON
December cotton was near unchanged overnight after trading to its highest level since March 18. Drought conditions in Texas with little relief in sight is sparking a recovery rally. Growers in West Texas are entering the second year of drought, and rains will be critical to the development for the non-irrigated crops, which comprise about 60% of the land in that region.
SUGAR
Sugar was modestly lower overnight after two days of sharp rallies. May sugar has only had one negative day since April 1 and is only slightly more than 100 points from its February high. The market has drawn support from a stronger Brazilian currency and higher energy prices, but the main source of strength has been a bullish supply outlook for the 2021/22 season.
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