ADMIS News
COCOA
Friday’s abrupt turnaround indicates that the cocoa market should continue to find solid longer-term support around last week’s lows. With bullish supply factors and an improving demand outlook, cocoa should see upside follow-through. For the week, March cocoa finished with minimal gain of 1 point. A sizable rally in the Eurocurrency provided cocoa with carryover support as that may help Euro zone grinders acquire near-term supply.
COFFEE
Coffee prices have spent the past month vulnerable to additional long liquidation, either from quarter-end/year-end profit-taking or from annual commodity index fund rebalancing. Now that market focus should shift back towards bullish supply/demand factors, coffee could see a retest of its multi-year high from early December.
COTTON
March cotton closed higher for the fifth straight week. Outside market forces were mixed. The dollar was weaker but so were the stock market and crude oil. For Wednesday’s USDA supply/demand report, the average trade expectation calls for US cotton 2021/22 ending stocks coming in at 3.46 million bales (range 3.00-385 million), down from 3.60 million in the December report.
SUGAR
Sugar prices have had a sluggish start to the year as focus has shifted towards production in Thailand and India. The market has fallen well into technically oversold levels, however, so further strength in key outside markets can help sugar to find some footing.
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