ADMIS News
COCOA
With 5 sessions to go, cocoa prices are now on-track for a positive monthly result after reaching a 3 1/2 month low during the second week of November. While key outside markets could be a source of headwinds later this week, cocoa should benefit from a bullish shift in its longer-term supply outlook.
COFFEE
Coffee’s coiling action could indicate a loss of upside momentum and with sizable gains for the month and quarters, there may be many longs who decide to take their profits and head to the sidelines in front of the Thanksgiving holiday. Coffee was able to extend its streak of “higher lows” to 9 sessions in a row, but appear overbought technically. With thin trading conditions late this week, coffee remains vulnerable to long liquidation.
COTTON
March cotton closed moderately lower yesterday after spending the day inside Friday’s range. The market has been consolidating since putting in new contract highs last Wednesday. The dollar was up sharply after President Biden nominated Jerome Powell for a second term as Federal Reserve Chairman. This could be negative to US export commodities like cotton.
SUGAR
Sugar prices have fallen back from last Thursday’s 2 1/2 month high and the market appears to be breaking out down from the recent uptrend channel. Key outside markets have finally regained a positive tone, and that may provide enough carryover support for sugar to hold its ground above the early November lows. March sugar saw downside follow-through from a negative weekly reversal and could not shake off that early pressure.
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