ADMIS News
COCOA
The cocoa market has seen demand concerns since the start of the COVID pandemic, and Russia’s invasion of Ukraine and the recent Chinese lockdowns have added fresh uncertainty. Cocoa prices have been strengthened recently from a shift in the West African supply outlook, and with improved demand prospects can extend an upside move.
COFFEE
The market will start out this week’s trading more than 10% above its mid-March lows. With signs that near-term demand is starting to improve again, coffee should be able to trend higher. For the week, July coffee finished with a gain of 3.10 cents (up 1.4%) which was a third positive weekly result in a row. Concern with upcoming production from Brazil and Colombia due to the negative impact of the La Nina weather event fueled a positive turnaround in coffee prices late last week. Colombia production at least 10% below year ago past 6 months.
COTTON
May cotton closed lower on Friday and near the lows of the day. The market traded to its lowest level since March 25 and closed at its lowest level since March 24. With drought conditions in west Texas and little or no rain in the forecast for the next 14 days, traders are concerned about the upcoming crop.
SUGAR
Sugar’s 2-day upside breakout has lifted prices well above the recent consolidation in spite of sluggish key outside markets. While the market has received bearish near-term supply news, sugar should benefit from increased ethanol demand and extend the rally. July sugar continued to accelerate to the upside as it reached a new multi-year high Friday.
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