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Solid Demand Continues For Cotton


While cocoa has been unable to sustain a sizable upside move since late November, the market continues to hold its ground above the December and January lows in spite of significant near-term demand issues.


While it finished January facing near-term demand concerns, coffee’s demand outlook should improve ahead as COVID shutdown restriction are relaxed. For the week, May coffee finished with a loss of 1.20 cents and a second negative weekly result in a row.


May cotton closed moderately higher on Friday and continued to advance overnight. The market closed lower for the week after closing higher for four weeks in a row. January was the eighth month in a row that cotton closed higher.


With energy prices likely to remain strong while inflation may be on the rise, sugar may be in position for a resumption of the uptrend as the recent consolidation has helped to alleviate some of the overbought condition.

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