ADMIS News
COCOA
Cocoa prices extended their losing streak to four sessions yesterday, but a spike low raises expectations that some sort of correction is due. The September contract fell to an eight-month low yesterday but managed to bounce back and close with a minimal loss.
COFFEE
A return to dry weather in Brazil, a restricted flow out of Colombia, and declining exchange stocks suggest that coffee could extend its recovery move through the rest of the week. Coffee prices remain well below their early June and early July highs, but they are showing signs that they have found a near-term floor.
COTTON
December cotton closed higher on Wednesday but spent the day inside Tuesday’s wide range. The market has gotten quite volatile over the past couple of weeks, as the fundamentals seem to be a mixed bag.
SUGAR
Sugar continues to see pressure from outside markets, but it has held its ground relatively close to last Thursday’s contract high, and it could be in position to test that level if crude oil stabilizes. Crude oil has sold off sharply over the past two sessions, dropping $5 per barrel from Tuesday’s 6 1/2-year highs. This pressured sugar on ideas it would soften Brazilian ethanol demand and encourage cane processors to crush for sugar.
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