ADMIS News
COCOA
Following the surprise year-over-year decline in fourth quarter North American grindings, turbulent global markets and sluggish global risk sentiment have kept cocoa’s near-term demand concerns in a front and center position. Barry Callebaut said that strong demand for chocolate helped to lift their quarterly sales volume by 8.9% over the previous year’s total.
COFFEE
Coffee continues to lift further away from Monday’s 3-week low in spite of turbulent outside markets and sluggish global risk sentiment. While prices may extend their recent coiling action, positive supply/demand factor can help coffee to extend its recovery move. Early forecast for Brazil to have their 2022/23 Arabica production reach their second lowest total over the past 9 “on-year” seasons provided underlying support to the coffee market.
COTTON
March cotton rallied yesterday back to its highest level since Thursday. Despite the selloff last week, the market is still holding a consistent uptrend off its early December lows. The dollar was higher, and the stock market gave back most of its early gains, but crude oil was sharply higher, so outside market forces were mixed. The trade will be looking to the weekly US export sales report on this morning for direction.
SUGAR
Sugar prices extended their losing streak to 5 sessions and have given back more than half of their January recovery move. While key outside markets are providing carryover support, a shift in focus towards major Asian producers has kept the sugar market on the defensive this week. Indications that this season’s production in Thailand and India is running ahead of last season’s pace was a notable source of pressure on the sugar market.
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