ADMIS News
COCOA
Turn higher with talk that virus may not be as bad as feared
Cocoa continues to deal with uncertain near-term demand prospects, but has received further indications of lower West African production this season. If the market can see a positive turnaround in global risk sentiment, cocoa can extend its recovery move.
COFFEE
Coffee was able to avoid downside follow-through from a negative weekly key reversal. Coffee’s net spec long position is very large and could give plenty of fuel for additional long liquidation if support levels are violated. Indications that global shipping container shortages are disrupting the flow of coffee imports to major consuming nations provided a boost to coffee prices.
COTTON
While only trading slightly higher on the day, the rally for cotton on Monday is impressive given the bearish outside market influences. A stronger dollar, weakness in the stock market and sluggish trade for energy prices were all seen as negative forces, but the market managed to see new buying interest.
SUGAR
While sugar has lost upside momentum, the market continues to hold up fairly well in spite of negative global risk sentiment and sluggish outside markets. With the 2021/22 sugar still on course for a global supply deficit, sugar should remain well supported on near-term pullbacks. Since reaching a 2 1/2 week high last Wednesday, sugar prices have held within a 35 tick trading range.
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