ADMIS News
COCOA
Cocoa’s 3-session winning streak has lifted prices more than 140 points above last week’s low and well above the 50-day and 200-day moving averages. March cocoa reach a 5-week high yesterday. Ivory Coast port arrivals remain well behind last season’s pace after the first 3 months of the 2021/22 season, which underpinned cocoa prices late this week as the current West African dry season is likely to keep output subdued through the first quarter of 2022.
COFFEE
Coffee prices have held within a 5.00 cent trading range so far this week, but the market continues to hold its ground above its 50-day moving average. While it will remain vulnerable to a near-term pullback until the end of commodity index fund rebalancing in early January, coffee’s bullish supply outlook should help the market hold its ground on a near-term pullback.
COTTON
March cotton closed higher for the second straight day after trading to its highest level since November 24th yesterday. The Dow and S&P 500 both traded to new all-time highs, and this lent a risk-on tone to the market. US jobless claims came in lower than expected, and the ongoing claims number was the lowest since early March 2020. This lends an optimistic tone to the economic outlook and suggests cotton demand will continue to be strong. US cotton export sales for the week ending December 23 came in at 216,580 bales. This was down from 293,030 the previous week and below the average of the previous four weeks at 352,847, but it was also the sixth straight week that sales were above 200,000 bales.
SUGAR
Sugar prices have seen 2 rallies followed by consolidation and a near-term pullback so far this month, and will start out the final session of 2021 within striking distance of a new 4-month low. If energy prices remain strong while Brazil continues to hold a bullish supply outlook, however, sugar should be able to find support.
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