ADMIS News
COCOA
While cocoa will continue to have near-term demand concerns until the global COVID pandemic is in our rear-view mirror, the market has benefited from improved global risk sentiment so far this week. With bullish supply developments underpinning prices, cocoa can extend this current recovery move.
COFFEE
Coffee prices have managed to find their footing before a retest of the mid-March lows and the 200-day moving average. If global risk sentiment continues to improve, coffee may regain lost ground. The Brazilian currency reached a new 2-year high which provided the coffee market with early carryover support, as the Real’s recent strength should ease pressure on Brazil’s farmers to market their remaining near-term coffee supplies.
COTTON
May cotton closed sharply lower yesterday, giving back a good portion of its gains from Monday. However, the market did hold above Friday’s close for its second-highest close in a decade. Indications from Russia that they are revising their plans have sparked some heavy selling in grains, energy, and metals over the past two days, and this may have encouraged some selling.
SUGAR
Sugar prices could not extend their late March recovery move, but remain on-track for both monthly and quarterly gains. While it will be pressured by sluggish energy prices, sugar has bullish supply factors that can help prices hold on corrective breaks. A second day in a row with heavy losses in crude oil and RBOB gasoline finally put significant carryover pressure on the sugar market as that could weaken ethanol demand in Brazil and India.
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