Brazil Sugar Production Lower Than Expected
Cocoa prices have been unable to climb above last Thursday’s 3 1/2 week high for 3 sessions in a row, and may be vulnerable to pre-holiday profit-taking and additional long liquidation. The market continues to have improving global demand and bullish supply developments, however, and that should help cocoa to remain fairly well supported on a near-term pullback.
After several sessions of coiling price action, coffee regained strong upside momentum and has risen to a new 10-year high. With sizable gains for the month and quarter going into thin holiday trading conditions, coffee remains vulnerable to increased volatility.
March cotton closed moderately lower yesterday, as it continued its consolidation pattern. The dollar made a new high for the move and apparently kept a lid on the cotton market.
While there have been bearish supply developments from Thailand and recent volatility in key outside markets, sugar continues to be underpinned by a bullish supply outlook. Brazil production lower than expected. With fresh developments in Brazil strengthening the case for a global supply deficit, sugar may extend a recovery move towards a retest of last week’s highs.
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.