ADMIS News
COCOA
Cocoa prices continue to see choppy action. While near-term demand concerns have shifted from Europe towards Asia, cocoa is showing signs that it should be well supported on a near-term pullbacks. A “risk on” post-holiday mood for many commodity markets provided cocoa with support as that can help to improve its near-term demand outlook.
COFFEE
After rising over 10% in value in less than 3 trading sessions and climbing further into overbought territory, coffee prices may have risen “too far, too fast”. While there are lingering doubts over near-term demand, coffee’s bullish supply outlook should help it remain fairly well supported on a near-term pullback.
COTTON
December cotton broke out above a two-week trading range on Monday and traded to its highest level since May 13. The dollar was lower, which is supportive to cotton. Heavy rains and isolated reports of hail in west Texas over the weekend raised concerns about possible planting delays.
SUGAR
Sugar was able to extend its rally to a third session in a row and is closing in on a retest of its early May highs. The market remains below overbought technical levels and is finding carryover support from key outside markets, so sugar may be able to reach new high ground over the near future.
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.
