ADMIS News
COCOA
The cocoa market has been able to climb 120 points above last week’s lows (up 4.9%) as an improving global demand outlook has helped to support. Cocoa has been able to maintain upside momentum in spite of severe weakness in a key outside market, and should remain well supported on a near-term pullback.
COFFEE
Coffee remains in a solid uptrend. With the market still holding a bullish supply/demand outlook, coffee should remain well supported. A pullback in the Brazilian currency to a 1-week low weighed on the coffee market, as a weaker currency may encourage Brazil’s farmers to market their remaining near-term supply from their 2021/22 “off-year” crop.
COTTON
December cotton closed moderately higher yesterday and is still consolidating after putting in a contract high on November 2. The dollar was up sharply, with the December Dollar Index trading to new contract high for the fifth straight day. This should be negative to cotton and other US export commodities, but cotton prices in China are reportedly much higher than US cotton. This continues to provide underlying support.
SUGAR
Sugar prices have maintained a coiling pattern since mid-August, but have extended to the upside over the past few weeks in spite of sluggish key outside markets. As Brazil’s output continues to fall further behind last season’s pace, sugar should remain well supported on near-term pullbacks.
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