ADMIS News
COCOA
After holding within a tight consolidation zone in front of the Thanksgiving holiday, cocoa’s abrupt turnaround has lifted the market back above its 200-day moving average at 2475. However, bearish demand indicators overnight has pressured. With recent bullish supply developments providing support, cocoa may bounce if outside forces weaken. For the week, March cocoa finished with a gain of 28 points (up 1.1%) which was a third positive weekly result over the past 4 weeks.
COFFEE
Coffee prices were able to finish last week on an upbeat note. For the week, March coffee finished with a gain of 9.95 cents (up 6.4%) which broke a 2-week losing streak. In addition, coffee was able to overcome a more than 1.5% selloff in the Brazilian currency which put carryover pressure on the coffee market as extended weakness in their currency will encourage Brazil’s production to market their remaining coffee supply to foreign customers.
COTTON
The export sales report on Friday was disappointing. Instead of net sales, there were net cancellations of 116,428 bales for old crop, with China cancelling 109,546. This seemed to verify concerns about Covid lockdowns and their potential effects on Chinese demand. The report showed sales for the week ending November 17 net cancellations of 116,428 bales for the 2022/23 (current) marketing year and net sales of 12,323 for 2023/24, for a total of -104,105.
SUGAR
While sugar has dealt with increased production from India and Thailand, the bearish shift in Brazil’s production outlook kept the market on the defensive last week. Unless it can find fresh support from key outside markets, sugar is likely to extend its pullback. For the week, March sugar finished with a loss of 72 ticks (down 3.6%) which broke a 3-week winning streak. Crude oil and RBOB gasoline weakness is seen as a bearish force and a sharp selloff in the Brazilian currency drove sugar prices into negative territory on Friday.
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