ADMIS News
COCOA
Cocoa prices have fallen more than 6% in value and fell back below all 3 major moving averages during the past 2 sessions as the market plunged back to prices levels seen during the December/early January trading range. Sharp selloffs in European and US equity markets weighed heavily on the cocoa market as they gave added fuel to near-term demand concerns, while pullbacks in the Eurocurrency and British Pound also put carryover pressure on cocoa prices.
COFFEE
With global risk sentiment seeing a positive turnaround, coffee may be in position to recover. A “risk off” mood throughout global markets yesterday weighed on coffee prices. In addition, the Brazilian currency continues to fall back from last Thursday’s 3 1/2 month high which weighed on coffee prices as that may encourage Brazilian producers to market their remaining near-term coffee supply.
COTTON
March cotton closed lower yesterday for the third session in a row after putting in new contract highs last week. Another steep selloff in the stock market prompted weakness in cotton, as a poor economy would spell trouble for cotton consumption. Crude oil was also lower, and the dollar was higher, and those moves were also negative for cotton.
SUGAR
Sugar prices are on a 3-session losing streak, but the market continues to hold ground above the 200-day moving average. Following a significant rebound in global risk sentiment, sugar can turn back to the upside. A sharp selloff in energy prices was a notable source of pressure on the sugar market as that may dampen near-term ethanol demand in Brazil and India.
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