ADMIS News
COCOA
Cocoa prices have been able to regain upside momentum, and events after the close should provide additional support. If global risk sentiment remains positive, cocoa could climb back above all 3 major moving averages for the first time since early October.
COFFEE
With the market likely to benefit from stronger global risk sentiment, coffee should continue to lift further clear of last Friday’s 2-week low. Bullish supply developments in Brazil and Colombia continue to provide the coffee market with underlying support, as both of the world’s top 2 Arabica-producing nations will continue to be negatively impacted by the La Nina weather event through the end of the first quarter.
COTTON
March cotton closed slightly lower yesterday, but it did not make a move outside the range of the past week or so. The dollar had a volatile day but closed lower, and this could help support cotton today. The stock market also recovered late, which could support cotton early today.
SUGAR
Sugar prices have been pressured by bearish near-term demand fears. However, a positive turnaround in global risk sentiment and key outside markets can help sugar find its footing. Brazil’s Petrobras cut their domestic gasoline prices, which was a significant source of pressure on the sugar market as that is likely to diminish near-term Brazilian ethanol demand.
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