ADMIS News
COCOA
While cocoa has seen whipsaw price action following its early May updraft, the market has continued a generally upward direction. Volatile outside markets and global risk sentiment will keep near-term demand concern in a front-and-center position, but cocoa is starting to see bullish supply developments that can help it to hold its ground.
COFFEE
Coffee prices have had their second updraft since the start of May and are back to within striking distance of a new contract high. While near-term demand remains uncertain, coffee has bullish supply developments that can support the uptrend. Ongoing dry conditions over Brazil’s major Arabica growing areas should help out with harvesting and drying beans, but that follows much drier than normal conditions since last year.
COTTON
December cotton closed higher yesterday after reclaiming some of their losses from last week. The dollar was lower, with the June Dollar Index trading to its lowest level since February 25, which is supportive to cotton exports.
SUGAR
Sugar prices still have work to go in order to regain losses from last week’s downdraft, but they appear to have found some short-term support. Outside market forces carry a bearish tilt this morning. While key outside markets are seeing volatile action, sugar has bullish supply/demand developments that can help prices extend a recovery move.
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.
