ADMIS News
COCOA
Cocoa’s abrupt turnaround last Thursday led to a 2-day updraft of 116 points (up 4.6%) as the market shifted focus from ample near-term supply to the prospects for upcoming production. For the week, December cocoa finished with a gain of 72 points (up 2.8%). Rising concern with upcoming West African production continues to underpin cocoa prices following news that a Nigerian trade group forecast their nation’s 2021/22 cocoa output would fall 12% from this season.
COFFEE
While coffee prices have started September on a downbeat note, they are holding their ground above the August consolidation zone and well above the August lows. With a bullish supply outlook providing underlying support, coffee may be able to regain upside momentum soon.
COTTON
The technical action remains positive but the supply fundamentals may sour for the USDA report late this week. December cotton closed higher on Friday, solidly back into a two-week range bounded roughly by 91.80 and 95.00. The dollar sold off sharply for the second straight day on Friday, and this added to support for cotton.
SUGAR
While sugar prices have started September by falling back from last Tuesday’s high, the market has held within a relatively tight trading range over the past 3 1/2 weeks in spite of volatile action in its key outside markets. With bullish supply developments providing support, sugar can benefit from stronger global risk sentiment.
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.
