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Cocoa Global Demand Improving

COCOA

Cocoa’s recent consolidation zone was already in the lower portion of its 2021 trading range due to near-term demand concerns and ample West African main crop supply. While the market may reach a new 7-month low, cocoa is well into “bargain” price territory given what remains a positive longer-term global demand outlook.

COFFEE

While the coffee market was caught up in the commodity “risk off” mood and remains on-track for a sizable weekly loss, it continues to hold its ground above the late-April low. Although there are ongoing concerns with European demand prospects, the market may be well supported on setbacks.

COTTON

While the market saw significant selling pressure yesterday, cotton held up relatively well compared with other agricultural markets. A less bearish influence from outside markets today is providing short-term support.

SUGAR

Sugar’s hefty net spec long position made a prime candidate for additional long liquidation during yesterday’s commodity “risk off” mood. Key outside markets remain in close proximity to their 2021 highs while a bullish supply outlook remains intact, however, and that can help sugar prices find their footing.

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