Cocoa Struggles With Demand
Cocoa prices have been under pressure since late November from the impact of COVID shutdowns on near-term demand. While this will be a major focus of trading over the next 6 sessions, cocoa has found supportive near-term supply news that will help to underpin prices.
After 4 sessions of coiling price action, the coffee market has regained upside momentum as the market appears to be shaking off near-term demand concerns. With a bullish longer-term supply/demand outlook providing support, coffee may extend this rebound towards a retest of the 3 1/2 month high.
March cotton closed lower on Wednesday after trading to a new contract high early in the session. The market may have felt pressure from a stronger dollar, which ended higher after retracing some of its losses from the previous session.
Sugar continues to see whipsaw price action, but the market has climbed back towards last week’s multi-year high as it benefited from fresh bullish supply news. The market remains near-term overbought and could lose strength from key outside markets and remains overbought.
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