ADMIS News
COCOA
Cocoa’s demand prospects should improve once COVID restrictions are relaxed and travel returns to pre-pandemic levels, but that timeframe continues to be pushed back further into the future. As a result, a near-term bearish supply outlook is driving the cocoa market further to the downside this week.
COFFEE
This week’s coiling action in the coffee market is keeping prices clear of their recent lows and the 50-day moving average, and is doing so in spite of ongoing concerns with European near-term demand. The market continues to have a longer-term bullish supply outlook, and that can help coffee prices to extend a recovery move.
COTTON
Traders are concerned that the heavy rains over the weekend and more forecast this week could damage crops in the Delta. The 1-5 day forecast call for rains across the cotton growing areas, with the heaviest in the Texas Panhandle, Oklahoma, and northern Arkansas. The 6-10 and 8-14-day forecasts call for below normal temperatures and above normal precipitation across the entire belt, including the Delta. The weekly export sales report will be released today.
SUGAR
Sugar prices continue to see coiling price action and have held inside of Monday’s wide-sweeping trading range over the past 2 sessions. Shift to a higher percentage of cane to ethanol to support. The market has also lifted well clear of Monday’s 8-week low in spite of bearish near-term supply developments. Crude oil and RBOB gasoline both posted sizable gains and reached multi-year highs that provided significant carryover support to the sugar market.
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