ADMIS News
COCOA
Near-term demand concerns continue to be a source of pressure for cocoa as it kept the market from building onto last week’s rally to a 6-week high. While there has been bearish near-term supply news that has also weighed on prices, cocoa’s longer-term bullish outlook should provide underlying support.
COFFEE
While coffee prices started the new trading year on the defensive, they have shown early signs that they are closing in on a near-term low. Even so, coffee could see further downside action this week before the market can find its footing. Honduran coffee exports last month were 91% above last year’s level, which weighed on the coffee market.
COTTON
March cotton closed moderately higher yesterday after spending the day in inside Thursday’s range. The dollar rebounded sharply after being lower on Friday, and this may have limited cotton’s gains. Traders are optimistic about demand in 2022 as long as the economy remains strong.
SUGAR
If global risk sentiment remains positive, sugar should remain well supported. A sizable pullback in the Brazilian currency became a major source of carryover pressure as a weaker currency encourages Center-South mills to emphasize sugar production for the global export market.
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