ADMIS News
COCOA
For the week, July cocoa finished with a loss of just 3 points (down 0.1%) which nonetheless was a third negative weekly result in a row. The Eurocurrency bounced back from a 3-week low to post a sizable gain on Friday, and that provided cocoa with carryover support as that will make it easier for Euro zone grinders to acquire near-term supplies.
COFFEE
Coffee continues to have bullish supply factors and an improving global demand outlook providing underlying support that has lifted prices over 36 cents (up 29%) so far during the second quarter. Recent volatile price action may be showing signs of a near-term overbought market, however, as coffee could see back and fill action this week.
Export sales news positive and China remains active buyer
COTTON
December cotton broke out of a four-day range on Friday and traded to its highest level since May 10. A second strong weekly export sales report in a row lent support to ideas that the interest in US cotton remains strong. The dollar index gave back most of Thursday’s gains, and this lent additional support to the market. China was the largest old crop buyer for the second week in a row.
SUGAR
Sugar had a strong start to the second quarter, as the start of Brazil’s Center-South cane harvest reflected the much drier than normal conditions since last year. Brazilian government officials have noted the driest conditions in 91 years with warnings on water scarcity and an emergency drought alert issued in late May, and that drove sugar prices higher.
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