ADMIS News
COCOA
December Cocoa is lower for the fourth straight day as the trade sees lower demand and a decent upcoming crop from West Africa. Dealers interviewed by Reuters cited hedging pressure from origin countries yesterday. Cocoa arrivals at Ivorian ports saw a slight improvement last week, with the cumulative total as of Sunday -25% from last year versus -31% the previous week. The improvement in the weather since mid-September has boosted production expectations for the main crop. The crop may have started out slow due to an extended dry period in late summer. There was a comment this week from an Ivory Coast trader suggesting that beans had been arriving from the bush but that buyers had been cautious ahead of the elections in that country. Now that the elections have concluded without unrest, arrival expectations may be increasing. Mondelez International cut its annual profit forecast, citing reduced purchases of chocolates and higher cocoa costs. They said US consumers are seeking healthier snacking options. The company has raised prices to offset higher cocoa costs, and this appears to be have a direct effect on demand.
COFFEE
December Coffee has extended it selloff this week on expectations that the US and Brazil will be able to reach an agreement that would lift the tariffs on Brazilian coffee. In an interview with Valor International, Abrão Neto, CEO of the American Chamber of Commerce for Brazil said the meeting between the Brazilian President “Lula” and President Trump meeting was positive because it removed a key political obstacle and both sides were ready to negotiate. Among the things the US is interested in are a framework for critical minerals and rare earth elements. World Weather Inc. says conditions will favor a more frequent shower pattern for Brazilian growing areas during the next ten days.
COTTON
December Cotton is sharply higher this morning on optimism that a deal could be reached with China when Donald Trump meets with Chinese President Xi Jinping on Thursday. China’s foreign ministry has confirmed that President Xi Jinping will meet with President Trump tomorrow in South Korea. Soybean prices soared yesterday on news that China had purchased US soybeans in advance of the meeting. This is their first purchase of US beans for the 2025/26 marketing year, and some of the excitement has spilled over to the cotton market. China has purchased a small amount of US cotton so far this season
SUGAR
March Sugar is close to taking out this week’s contract lows and resuming its downtrend. The next UNICA report on Brazil Center South sugar production for the first half of October could be out this week, as they are often released before the end of the month. A survey of analysts by S&P Global survey calls for the report to show crushing down 1.5% from a year ago to 33.42 million metric tons but sugar production to be up 0.6% to 2.47 million tons. The last report (as of October 1) showed cumulative crush had reached 490.926 million tons, down 3.0% from last year and cumulative sugar production 33.524 million tons, up 0.84% from a year ago. Sugar’s share crush was 51.2% during the second half of September versus 47.7% for the same period last year.
Interested in more futures markets? Explore our Market Dashboards here.
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.
