ADMIS News
COCOA
Cocoa’s 6-session winning streak has taken prices far above the 3 major moving averages and within striking distance of a new 4-month high. With the market receiving bullish supply/demand news, cocoa may be heading for a retest of the early October highs. For the week, May cocoa finished with a gain of 178 points (up 7.0%) which broke a 2-week losing streak. Ongoing hot and dry weather over West African growing areas remains a key source of strength for the cocoa market as that should have a negative impact on the region’s upcoming mid-crop production.
COFFEE
The market will start this week in close proximity to a new 2-month high. For the week, May coffee finished with a gain of 6.00 cents (up 2.5%) which broke a 2-week losing streak. A sizable pullback in the Brazilian currency weighed on coffee prices as that could lead to Brazil’s farmers becoming more aggressive with marketing their remaining near-term coffee supplies.
COTTON
The market looks vulnerable to a significant break if uptrend channel support gives way at 123.52 today for March cotton. The market closed lower on Friday after failing an attempt to take out Tuesday’s contract high. The dollar was higher but so was crude oil, so outside market forces were mixed.
SUGAR
Sugar prices have had trouble sustaining upside momentum. Ethanol demand in Brazil should see a significant uptick over the next few weeks, however, and that can help to lift sugar prices well clear of the recent lows. After finding early pressure, May sugar was able to follow-through on Thursday’s hook reversal as it finished Friday’s trading session with a mild gain.
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