ADMIS News
COCOA
While cocoa prices have benefited from strength in key outside markets, the prospects for stronger demand later this year can help cocoa extend this recovery move. Global risk sentiment continued to show improvement, and that gave a boost to cocoa prices as it may help to strengthen the near-term demand outlook.
COFFEE
Coffee continues to follow-through on Tuesday’s outside-day higher and is on-track for a positive weekly reversal. While a significant turnaround in a key outside market has been a major factor, coffee is finding support from bullish supply developments as well. The Brazilian currency reached a 2-week high and has regained more than 6% in value from Tuesday’s 9 1/2 week low, and that provided significant carryover support to coffee prices as that eases pressure on Brazilian farmers to market their remaining supply to foreign customers.
COTTON
The market is seeing increased volatility but appears to have put in a spike bottom on Wednesday. The dollar sold off sharply and traded to its lowest level all week, and this was viewed as supportive to US cotton export business.
SUGAR
Sugar prices have rejected a potential downside breakout and are on-track to close higher for the week. As long as key outside markets retain their strength, sugar should extend its recovery move and go into the weekend on an upbeat note.
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