ADMIS News
COCOA
While cocoa had a positive finish to last week, it continues to be weighed down by bearish near-term supply/demand factors. Although the longer-term demand outlook remains bullish, there is still no technical sign of a short-term low.
COFFEE
After making strong gains in April and May, coffee reached its highest level in almost five years on the first day of June, but over the next three weeks prices fell more than 10%. Despite the setback, coffee’s bullish supply outlook remains intact and can help to strengthen upside momentum.
COTTON
December cotton closed higher on Friday after trading to its highest level since June 14. Concern that Delta and southeastern US growing areas have received too much rainfall in the wake of Tropical Storm Claudette lent support to the market last week. However, Texas has been receiving copious amounts of rain this past week, which has been viewed as beneficial for the crop.
SUGAR
While it is still down for the month and below its early June consolidation zone, sugar finished last week with 3 positive closes in a row and 2 closes in a row above its 50-day moving average. While there have been bearish near-term developments over the past few weeks, sugar’s longer-term supply outlook remains bullish which can help the market maintain upside momentum.
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.
