ADMIS News
COCOA
While it will remain an area of concern until the COVID pandemic is in the world’s “rear-view mirror”, there are growing signs that global cocoa demand has been improving. While a stronger Eurocurrency provided support, cocoa’s main source of strength came from the European Cocoa Association (ECA) who reported that fourth quarter European grindings came in at 385,626 tonnes.
COFFEE
Coffee prices have climbed nearly 24 cents (up 10.8%) above the 2-month low from January 3rd. With the market receiving support from a bullish supply/demand outlook, coffee should be heading for a retest of its early December high.
COTTON
The cotton market keeps moving higher and the uptrend has accelerated which leaves technical indicators extremely overbought. March futures traded to new contract highs for the third straight session and for the fourth time in five sessions. The move took the nearby contract through the November highs to the highest level since July 2011.
SUGAR
Big start to 2022 as ethanol demand may be on the rise. After losing 7% in value and reaching a 6-month low during the first 6 sessions of January, sugar prices are now on-track for a positive monthly result. Although key outside markets are providing a significant amount of carryover support, bullish supply factors are also fueling sugar’s upside move.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
