ADMIS News
COCOA
Cocoa’s longer-term demand outlook remains positive as increased COVID vaccine usage should help to relax COVID restriction and ramp up travel in many areas of the world. Near-term demand remains uncertain and reacts to the ebb and flow of key outside markets, so cocoa may have a bumpy ride.
COFFEE
Coffee prices were unable to climb up into new high ground as the “risk off” mood throughout Ag commodities put some brakes on this week’s updraft. While near-term demand remains uncertain, coffee continues to have a bullish 2021/22 supply outlook that should keep the market fairly well supported.
COTTON
December cotton closed lower yesterday after choppy trade and the market has seen a recovery bounce overnight. The June Dollar Index bounced off of Tuesday’s 2 1/2-month low, which was negative to cotton.
SUGAR
Sugar prices have been unable to sustain upside momentum this week and remain near the bottom end of last week’s pullback. In spite of the negative tone of key outside markets and global risk sentiment, sugar has held its ground above Monday’s low and should be a beneficiary if and when a “risk on” mood redevelops in commodity markets.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
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.
