ADMIS News
COCOA
European cocoa processing jumped 14% y/y for the second quarter to 356,854 tons with the market looking for a 7% to 11% year-over-year increase. The median estimate in a Bloomberg survey was for a 7.5% increase.
COFFEE
Coffee prices are close to climbing back above their 50-day moving average. South American supply issues continue to provide underlying support that can extend coffee’s recovery move. The Brazilian currency regained more than 1.2% in value on Monday, and that provided coffee with carryover support as that can help to ease pressure on Brazil’s farmers to market their near-term coffee supply to foreign customers.
COTTON
While the market closed higher after the USDA report, the production outlook is bearish as harvested acres jumped nearly 1 million acres from the June estimate even though planted area was revised lower in the June acreage report. This drove ending stocks higher even with a significant revision higher in exports. In addition, crop conditions are improving and the weather forecast is benign.
SUGAR
Sugar prices remain on the defensive and pressured by bearish supply news. Unless they see a positive turnaround in key outside markets, sugar may be heading for a retest of their mid-June lows. The Brazilian trade group Unica released their supply report for the second half of June which had Center-South sugar production at 2.892 million tonnes which was 5.6% above last year’s total, while the Center-South cane crush was 4.4% higher than last year as mostly dry conditions helped out with cane harvesting and crushing.
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.
