ADMIS News
COTTON
July cotton broke out to the upside yesterday and the buying pushed the market up to the highest level since March 23. The 5-day forecast calls for some rains for much of Texas except northern and western Texas, a key growing area. The 6-10 day forecast call for above normal precipitation in Texas, but below-normal conditions return in the 8-14 day. This keeps the drought conditions there front-of-mind.
COCOA
With the flare-up of new COVID cases and fresh lockdown measure in the region, it was little surprise that Europe had a negative year-over-year quarterly grindings result. With that in the market’s rear-view and potentially more positive demand reading on the horizon, cocoa can sustain upside momentum in front of critical data points late today and early Friday.
COFFEE
Coffee prices have been able to maintain upside momentum for most of April so far and have recovered more than half of their February/April pullback. With a bullish supply outlook providing underlying support, fresh signs that near-term demand is improving should fuel a retest of the late February highs.
SUGAR
While sugar received a significant boost from its key outside markets, its main source of underlying support has been a bullish shift in the global supply outlook. If global risk sentiment can see some improvement, sugar may head for a retest of its late February highs.
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