ADMIS News
COCOA
Cocoa prices have yet to find strong upside momentum this month, but held up fairly well in the face of sluggish global risk sentiment and weakness in its key outside markets. Near-term demand prospects remain a headwind to get past, so the cocoa market remains vulnerable to further downside action. Sluggish equity markets in Europe and the US put carryover pressure on cocoa prices as they may weaken the near-term demand outlook in both regions.
COFFEE
Coffee prices ran out of steam before they could climb back above the 50-day moving average for the first time since late February. The market remains well above its March lows, and continues to receive bullish supply news. Colombia March production 914,000 bags, down 13% from last year.
COTTON
May cotton is down this morning and closed lower yesterday and back towards the lower end of the range of the past nine sessions. The dollar was higher, and crude oil and the stock market were sharply lower, all of which are negative to cotton. Dry conditions persist in West Texas, which keeps concerns about US production this year in the spotlight.
SUGAR
Sugar prices have held within a relatively tight trading range so far this week at the upper end of the March/April recovery move. Crude oil and RBOB gasoline prices came under severe pressure yesterday which in turn weighed heavily on the sugar market as that may weaken near-term ethanol demand prospects.
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.
