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.
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