ADMIS News
COCOA
Cocoa’s longer-term demand outlook remains positive as this season is on-track for a fourth record high grindings total in a row. Although near-term demand prospects remain uncertain, bullish supply developments can help the cocoa market find its footing.
COFFEE
Coffee’s coiling action last week helped the market hold its ground above its late November low as bullish supply developments continue to underpin prices. While it remains vulnerable to profit-taking and additional long liquidation given its sizable gains for the quarter and year, coffee should remain fairly well supported on near-term pullbacks this week.
COTTON
March cotton closed lower Friday, giving up much, but not all, of their gains from Thursday. The recurrence of the Covid crisis with the surge in cases has traders uncertain about future demand. The dollar was up sharply on Friday, which raised concerns about US export prospects.
SUGAR
Sugar has been unable to overcome carryover pressure from key outside markets as it finished last week’s trading on a downbeat note and the selling continues this morning with a sharp drop in the stock market. The market is still heading for a global supply deficit this season, however, and that should help sugar prices find their footing.
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