ADMIS News
COCOA
Cocoa prices have benefited from a positive longer-term demand outlook for most of this year as the prospect of reduction and then removal of COVID restriction pointed towards increased chocolate consumption. While the market received a reminder of how difficult that process may have during the fourth quarter, cocoa’s bullish supply/demand outlook should help to underpin prices going into November.
COFFEE
While the market continues to have trouble sustaining upside momentum, it has found support well above its October lows and continues to be strengthened by bullish supply developments and improving global demand prospects. A more than 1.2% selloff in the Brazilian currency weighed on the coffee market as extended currency weakness could make Brazil’s farmers more aggressive with marketing their remaining 2021/22 coffee supplies.
COTTON
December cotton broke out of its recent consolidation yesterday and traded to its highest level since October 8, which was the day it put in its most recent contract high. The close above 111.52 is likely enough to assume a resumption of the uptrend. The dollar broke sharply, and this lent support to cotton.
SUGAR
Sugar prices have consolidated within a fairly tight range over the past 2 sessions that is well above last week’s lows. Weaker crude oil and RBOB gasoline prices put carryover pressure on sugar as they may dampen Brazilian and Indian ethanol demand prospects.
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