ADMIS News
COTTON
December cotton closed higher on Wednesday after first trading to its lowest level since July 15, which could be a sign that a short-term low is in place. Cotton received some outside market support with the dollar lower and crude oil and equities higher. The December Dollar Index had an outside reversal day lower after putting in a new contract high. Hurricane Ian made landfall on the west coast of Florida as a category-4 storm. The storm’s path suggests it could bring heavy rains to the heavily planted areas of southeastern Georgia and to South Carolina.
COCOA
While cocoa was unable to sustain upside momentum, the market remains on-track for a positive weekly reversal. With global risk sentiment continuing to mend, cocoa may find some relief from near-term demand concerns. Concern over fourth quarter demand prospects as stubbornly high inflation is likely to have many consumers pull back on discretionary purchases, and that continues to weigh on the cocoa market.
COFFEE
Coffee continues to see whipsaw price action, but has seen positive daily results for each session so far this week. If the rebound in global risk sentiment can help to soothe near-term demand concerns, coffee can extend this recovery move. Restaurant and retail shop consumption are expected to be negatively impacted by high inflation levels that are likely to continue in many major economies into early 2023, and that has been a headwind for the coffee market over the past month.
SUGAR
50-day moving average and unable to sustain momentum. Energy prices and global risk sentiment have seen significant improvement over the past 24 hours, but sugar needs to receive much more bullish supply news in order to sustain a recovery move. The latest weekly EIA report fueled a more than $3 a barrel rally in crude and a sizable gain in RBOB gasoline, and that provided sugar with significant carryover support as that can help to improve near-term ethanol demand prospects.
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