ADMIS News
COCOA
Cocoa prices have had a rough start to a week that will feature critical demand-side data results. European third-quarter cocoa grind increased 8.7% from a year ago to 375,811 tons. A Bloomberg survey showed a range of forecasts between a 5% to a 9% year-over-year increase over third quarter 2020 grindings.
COFFEE
Coffee prices have risen more than 10% in value over the space of one week as supply-side developments both near-term and longer-term have fueled this updraft. Although the market is approaching overbought territory, coffee looks to have much more upside left to go before this rally runs out of steam.
COTTON
The USDA supply/demand report was mixed, with the US numbers leaning bullish but the world numbers bearish. In the report, US 2021/22 production was 18.00 million bales, below the average expectation of 18.37 million (range 17.90-18.60 million) and down from 18.51 million in the September report. Export came in at 15.50 million versus 15.61 million expected (range 15.00-16.00 million) but up from 15.50 million in September. Ending stocks came in at 3.20 million bales versus 3.44 million expected (range 3.16-3.75 million) and down from 3.70 million in September.
SUGAR
Sugar prices were unable to regain upside momentum as they were pressured by lukewarm global risk sentiment and subdued energy prices. The supply/demand outlook
remains bullish, so sugar prices should remain well supported. Brazil’s Center-South sugar production this season remains well below last season’s pace due to extensive
periods of drier than normal weather.
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