ADMIS News
COCOA
With West African supply issues and signs of improving demand, cocoa should see more strength. Following comments from a major chocolate maker, cocoa may be able to maintain upside momentum. The US confectioner Hershey reported better than expected quarterly earnings and revenue, and also raised their guidance for their upcoming quarter.
COFFEE
Coffee’s first 3-session winning streak since mid-December has lifted prices to within striking distance of new 8-week highs. ICE exchange coffee stocks fell 16,101 bags on Thursday and are more than 153,000 bags (down 11.9%) below last Friday’s total. Although warehouse coffee supplies in Europe and North America have been dropping since the start of 2021’s fourth quarter, their rapid decline this week points towards tightening near-term supply in major consuming nations.
COTTON
The strong export news plus bullish outside market forces should support more buying. The dollar was sharply lower, which is a supportive factor to export commodities like cotton. Crude oil was higher, with the nearby contract trading to its highest level since 2014, which is also supportive to cotton. However, the stock market was lower which was a bit of an offset.
SUGAR
With key outside markets and global risk sentiment taking a positive shift late yesterday, sugar may see a recovery bounce. Forecasts for rain over Brazil’s major cane-growing regions and a mild pullback in the Brazilian currency weighed on sugar prices early yesterday. Simmering Ukraine/Russian tensions have underpinned energy prices which in turn are a source of carryover support to sugar.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
