ADMIS News
COCOA
Cocoa prices have followed through on a last week’s positive weekly reversal with four positive daily results in a row and 165 points in gains so far this week. Cocoa was able to extend this week’s upside move in spite of sluggish global equity markets and a pullback in the British Pound as it found carryover support from a rebound in the Eurocurrency.
COFFEE
Coffee prices have bounced back quickly from Wednesday’s negative daily reversal and continue to climb further into new high ground. The market is on-track for sizable weekly and monthly gains which may encourage profit-taking and additional long liquidation, but coffee is benefiting from an improving global demand outlook that can lift prices towards a retest of their late 2019 highs.
COTTON
The dramatic key reversal taking out three-days of trade and closing down the 4 cent limit suggests a major top may be in place. Traders attributed this move to the selloff in corn and soybeans, but the cotton move was more dramatic.
SUGAR
A bullish supply/demand outlook and carryover support from energy prices has the sugar market in close proximity to 3 1/2 year highs and on-track for a tenth positive monthly result in a row.
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