ADMIS News
COCOA
Cocoa spent last week in a coiling price pattern that stayed well clear of its early December lows. Carryover support from key outside markets can help cocoa to regain upside momentum and extend its recovery move. For the week, March cocoa finished with a loss of 1 point (down 0.1%) which was a second negative weekly result over the past 3 weeks.
COFFEE
Coffee has been one of the strongest performing commodity markets this year, and as a result has seen several sizable pullbacks over the past few months. With the market building up a near-term net spec long position going into the final month of the year, coffee could see further downside action over the near-term. For the week, March coffee finished with a loss of 10.75 cents (down 4.4%) which broke a 4-week winning streak and was a negative weekly key reversal from last Tuesday’s 10-year high.
COTTON
March cotton closed lower on Friday, but it stayed inside Monday’s range, as it had all week. The market did close higher on the week for the first time in three weeks. Traders cited less concern over the Omicron variant as one reason for the recovery last week. There was a mixed reaction to the monthly supply/demand report last week, but world ending stocks for 2021/22 coming in at 85.73 million bales, down from 86.93 million in November’s report was viewed as supportive. This was below the average trade expectation of 86.74 million and below the low end of the range of expectations from 86.00 to 87.30 million.
SUGAR
Sugar prices consolidated within a 35-tick range Thursday and Friday as the December recovery move ran out of near-term steam. With bullish supply factors providing underlying support, a positive turnaround in key outside markets can help sugar regain upside momentum early this week. For the week, March sugar finished with a gain of 96 ticks (up 5.1%) which broke a 3-week losing streak.
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