Resumption of Uptrend For Cocoa
Cocoa prices have regained upside momentum and remain in close proximity to last Wednesday’s multi-year high. While the market is finding fresh support from positive supply/demand news, a negative shift in global risk sentiment could fuel a near-term pullback.
Coffee prices continue to have trouble sustaining upside momentum, but they are holding up fairly well in spite of the negative shift in global risk sentiment. With bullish supply/demand factors providing support, coffee may be setting up for a longer-term upside move.
December cotton continues to consolidate in a choppy trading range since mid-August. Traders are concerned that as Hurricane Nicholas makes landfall and brings heavy rains to eastern Texas, Louisiana, and much of Mississippi and Alabama, it could damage some of the cotton crop.
Sugar prices have not had two positive daily results in a row since late August as the market has been pressured by bearish supply-side developments. With Brazil looking at a sizable decline in production during the 2021/22 season, however, sugar may be closing in on a near-term low.
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