ADMIS News
COCOA FUTURES
Cocoa prices saw no downside follow-through from Friday’s negative key reversal as the market continues to receive bullish supply/demand news. If global risk sentiment continues to improve, cocoa prices should be able to extend their March/April rally into new high ground. While sizable pullbacks in the Eurocurrency and British Pound put carryover pressure on the cocoa market, signs that global demand has been improving this year provided a significant boost to cocoa prices late in the day.
COFFEE FUTURES
With signs of improving global demand, coffee prices can extend their April rally further into new high ground. ICE exchange coffee fell by 1,075 bags on Monday as they continued to decline during April. There has been no coffee graded this month so far with no coffee waiting to be graded, so ICE exchange coffee stocks are likely to decline further over the next few weeks which has provided a boost to coffee prices.
COTTON FUTURES
July cotton closed moderately higher yesterday after trading to its highest level since March 30. The market held up well considering a couple of negative outside market influences. The June Dollar Index experienced a key reversal bottom on Friday, and it saw follow-through buying on Monday. This could pressure cotton and other US export commodities. Crude oil was also lower, which was negative to cotton as it makes man-made fibers more competitive with cotton.
SUGAR FUTURES
Sugar prices remain well supported early this week as production issues in India, the EU and China continue to be source of strength. With Brazil’s Center-South cane harvest underway, however, sugar needs to see stronger key outside markets to hold its ground close to last Wednesday’s high. A pullback in energy prices weighed on the sugar market early in the day as that may weaken ethanol demand, while a selloff in the Brazilian currency was another source of pressure. Indications that India will not allow any further exports this season helped sugar prices to rally, as Thailand’s exports this season will fall short of early expectations.
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