ADMIS News
COFFEE
Coffee prices are experiencing a subdued finish to the third quarter. The market is in a short-term oversold condition and is probing for a low. Reports that Brazilian warehouses are full as their 2020/21 harvest draws to a close continue to weigh on the market. This has offset any carryover support from a modest recovery in the Brazilian currency from a four-month low.
COCOA
As the new season starts in West Africa, there are near term bearish supply concerns that could pressure the market. December cocoa has been weighed down by global demand concerns since it reached its early September highs, so it was little surprise that the negative shift in global risk sentiment put the market on the defensive.
COTTON
The market has been consolidating for the past two weeks. The dollar broke lower for the second day in a row, which offers some support to cotton, but the stock markets were lower as well. There could be some harvest pressure developing as the southeastern US and Delta regions dry out this week.
SUGAR
Given its bearish global supply outlook, the sugar market has been surprisingly resilient, as it is on track to post a fifth monthly gain and a second quarterly gain in a row. The market has built up a sizable spec net long position and is approaching near-term overbought levels, so it will need continued carryover support from key outside markets to stay in a slow uptrend.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
