ADMIS News
COFFEE
Coffee prices have seen volatile trading action this week as mixed supply-side news was unable to overcome increasing demand concerns. The market continues to hold its ground above the early October lows, however, and may be forming a short-term low. Reports of increasing coronavirus lockdowns in Europe weighed on the coffee market as it points toward lower demand from a region that had been a source of demand-side strength.
COCOA
The cocoa market has avoided negative surprises with 2 of 3 critical demand-side gauges this week, but negative key outside markets and news from Europe continue to fuel concern over demand prospects over the rest of this year. The fourth quarter Asian grindings total came in down 10%, with trade estimates looking for a 4.5% year-over-year year decline.
COTTON
The market remains in a steady uptrend and the highest close since February 21st is a positive technical development. Too much rain has been the issue for both US and India crops and recent rains in India could cause some significant losses coming right into the harvest. The rally was impressive given the sharp rally in the dollar.
SUGAR
Sugar prices remain in close proximity to Monday’s 7-month high, but they have seen 2 sizable pullbacks into negative territory over the past 4 session and are on-track for a negative weekly result. Unless it can find carryover support from key outside markets, sugar is vulnerable to significant long liquidation and profit-taking.
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