ADMIS News
COCOA
While they remain in close proximity to multi-year lows, cocoa prices have been able to put the brakes on a 6-session losing streak. European and US equity markets regained some strength after recent heavy losses, which provided cocoa with carryover support as that may help to soothe near-term demand concerns in both regions.
COFFEE
Coffee prices have been able to extend their recovery move and are close to climbing into positive territory for the week. If global risk sentiment continues to mend, coffee should be able to complete a positive weekly reversal. Drier than normal conditions over Brazil’s major Arabica growing regions continue to provide the coffee market with support, as they are likely to reduce their nation’s upcoming production. So far, threatening weather but offset by demand weakness.
COTTON
December cotton sold off yesterday and closed at its lowest level since June 6. Traders blamed weaker grain prices, but cotton performed worse than grains did. The 6-10 and 8-14-day forecasts call for much above normal temperature across the cotton belt, and below normal precipitation in an area that includes most of Texas and the delta. However, conditions are a bit less hot and less dry in west Texas, which needs the rain the most.
SUGAR
Sugar prices are on a 4-session losing streak and near a 3 1/2 month low as they continue to be pressured by bearish Brazilian supply developments. Unless key outside markets can regain their strength, sugar may slide further to the downside. The Brazilian Congress has passed a bill to put a 17% ceiling on state fuel taxes, which will be signed by President Bolsonaro and become law.
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