ADMIS News
COCOA
Cocoa prices remains near the lower portion of the 2021 trading range. As focus shifts towards a positive longer-term demand outlook, the market may find some underlying support. While the Eurocurrency posted a sizable loss and European equity markets posted lukewarm results, the prospects for global demand growth once COVID restrictions are relaxed helped the cocoa market to regain some strength.
COFFEE
For the second time this month, coffee prices have broken out of a tight consolidation zone with a sharp upside move. With the market at multi-year highs, coffee should be able to maintain upside momentum over the rest of this week. Diminishing prospects for Brazil’s 2021/22 “off-year” Arabica crop have underscored by the latest forecast from the Brazilian government agency Conab which projects a 31% decline from last season’s output.
COTTON
December cotton closed higher yesterday after falling to its lowest level since Friday. The dollar bounced off Tuesday’s 4 1/2 month low, and this pressured cotton on ideas a stronger dollar hinders US exports. Traders are looking at improving conditions in Texas with a regular pattern of rainfall developing over the past week or so. The 1-5-day forecast calls for very heavy precipitation from in an area from Nebraska to the Texas Panhandle, with lesser amounts spreading southward across Texas.
SUGAR
Sugar prices have been unable to break out above their late May consolidation zone and remain well below the multi-year high seen 2 weeks ago. With increasing near-term demand concerns weighing on the market, bearish supply-side developments may keep sugar on the defensive.
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.
