Impressive Gains in Cotton
With bullish supply-side developments providing underlying support, a likely recovery in global demand when COVID vaccines come into widespread use can help cocoa prices maintain upside momentum over the near-term. For the week, March cocoa finished with a gain of 10 points (up 0.4%) and a second positive weekly result in a row.
Coffee finished a challenging year for demand as a significant portion of its consumption normally occurs at restaurants and retail shops which were shuttered or are operating at lower capacity because of the COVID pandemic. As vaccines are disseminated in the coming year, these measures should be relaxed which can help coffee prices maintain upside momentum.
March cotton closed moderately higher on Thursday after trading to its highest level since December 2018 basis the nearby contract and the market drove sharply higher overnight. The market also posted its largest annual increase since 2010.
Sugar finished 2020 with an 8-session winning streak and has risen for 8 months and 3 quarters in a row. The move above the November highs this morning leaves 16.26 as next upside target.
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