ADMIS News
COCOA
Bearish outside market forces sparked more selling overnight. There was a sizable rebound in Chinese equity markets yesterday that provided carryover support to the cocoa market as that can help to soothe Asian near-term demand concerns and the market bounced. Ivory Coast, Ghana and Nigeria are expected to have their current production issues continue into next season due to a lack of fertilizer and pesticide usage, and that continues to underpin cocoa prices this week.
COFFEE
September rains have sparked flowering across key growing areas and this has helped to ease production concerns for next year. Coffee prices continue to have a tug-of-war between near-term demand concerns and a bullish supply outlook, but the market was able to extend this week’s rebound in spite of negative global risk sentiment. Ongoing production issues with Brazil and Colombia have been a major factor in the tightening of near-term coffee stocks which has provided coffee with underlying support.
COTTON
December cotton closed modestly lower yesterday for its fourth straight decline and its lowest close since July 14. The dollar was slightly higher, which was a modest changed after the rallies of the previous three sessions. Traders will be watching the path of Hurricane Ian for potential damage to the crops in the southeast. The 1-5-day forecast calls for heavy rains in Alabama, Georgia, and the Carolinas.
SUGAR
Sugar prices have maintained their coiling action as they were unable to hold onto early strength and finished lower yesterday. Crude oil and RBOB gasoline prices put together a sizable recovery move which provided carryover support to the sugar market. While the latest Unica supply report showed a lower than expected result, Center-South sugar production came in more than 12% above last year’s comparable total.
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