ADMIS News
COCOA
Cocoa prices have seen their first 2-session losing streak since late January and have fallen more than 100 points below last Thursday’s multi-year high. While demand prospects remain an area of concern, cocoa still has bullish supply developments can help the market find its footing. A sharp selloff in European equity markets and a pullback in the Eurocurrency weighed on cocoa prices as they may weaken European near-term demand prospects.
COFFEE
Coffee’s near-term correction took prices more than 15.00 cents below last Thursday’s high before the market found its footing. With volatile global risk sentiment weighing on many commodity markets this week, coffee may be vulnerable to further downside price action. Rainfall over major Brazilian Arabica-growing regions weighed on the coffee market as that is expected to benefit their upcoming crop.
COTTON
The market looks vulnerable to further downside action over the near term after Friday’s close below the key uptrend channel. News from the National Cotton Council planting intentions survey which was released Sunday showed that US farmers are expected to plant near 12 million acres for the new crop season, up about 7.3% from a year ago. This, along with the overbought condition of the market would suggest that at least a significant correction is in order.
SUGAR
Sugar has been unable to benefit from the recent strength of its key outside markets as the market has been unable to lift decisively clear of its January and February lows. As a result, sugar may need to find fresh bullish supply/demand news in order to sustain a bounce. Strength in energy prices and the Brazilian currency provided sugar with early carryover support, as that combination should encourage Brazil’s Center-South mills to shift more of their crushing from sugar production to ethanol production.
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