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Carryover Support For Sugar


Cocoa prices have put together 8 positive daily results in a row, which is their longest winning streak since last November. With the market on the verge of a monthly positive reversal and climbing above all 3 major moving averages for the first time since early June, improving global risk sentiment can help support.


Brazilian weather will remain the front and center issue for coffee, so the market will remain vulnerable to end-of-week/month profit-taking. There is cold weather in the forecast for many of Brazil’s Center-South Arabica growing regions Thursday night and Friday morning, but this will be followed by warmer temperatures over the next few days.


For cotton, the inside trading session Thursday after the contract high on Wednesday is a minor bearish technical signal, but probably not strong enough to spark much selling. The weekly drought monitor showed practically no areas of Texas, the Delta, or the southeastern US under any type of dry conditions.


Sugar prices should continue to find carryover support from key outside markets. For today’s trading, however, sugar will take direction from the severity of Brazil’s latest cold wave. The market experienced a negative daily key reversal.

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