ADMIS News
COCOA
The surprise year-over-year decline in fourth quarter North American grindings was a notable source of pressure on the cocoa market, as that region was showing significant demand improvement during 2021. Cocoa’s near-term demand concerns may remain an issue as long as COVID restrictions are in place for many regions of the world.
COFFEE
With a bullish supply outlook and improving demand providing support, coffee should continue to remain well supported on near-term pullbacks. For the week, March coffee finished with a loss of 1.75 cents (down 0.7%) and a negative weekly reversal from Thursday’s 6-week high. The negative shift in global risk sentiment weighed on the market as that may dampen near-term demand prospects.
COTTON
March cotton closed lower for the second session in a row on Friday after having traded to new contract highs on Wednesday. The market still closed higher for the week, as it had for the previous six weeks. A sharp selloff in the stock market and weaker crude oil prices contributed to the selloff.
SUGAR
For the week, March sugar finished with a gain of 59 ticks (up 3.2%) which was a second positive weekly result in a row. A pullback in energy prices was a source of early carryover pressure on the sugar market as that weakens near-term ethanol demand, while a pullback in the Brazilian currency also weighed on sugar prices. With Brazil’s Center-South cane harvest and crushing mostly completed, market focus has shifted towards Asia as Thailand has made a sizable recovery from back-to-back poor cane crops.
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