Coffee Struggling to Find Buying Support
Cocoa has spent the last 3 sessions inside of last Wednesday’s price range and well below last week’s high. With improving global risk sentiment, cocoa can regain upside momentum over the next few sessions.
Coffee prices continue to stay in a fairly tight consolidation pattern with a sixth close in a row within a 1.00 cent range. Although a huge Brazilian crop continues to shadow the market, improving demand prospects may be the catalyst for coffee to lift clear of these current price levels.
December cotton experienced a hook reversal from an overbought condition after reaching the highest level since March 13th. This is a bearish technical development for the market.
After 6 positive daily results in a row, sugar’s upside breakout move ran out of steam when some of its key outside markets turned negative. While improving global risk sentiment should provide underlying support, a bearish supply outlook may encourage additional longs to take their profits and head to the sidelines.
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