Short Term Demand Woes Continue in Cocoa
Cocoa prices were able to break a 4-session losing streak, but remain on-track for a fourth negative weekly result in a row. With near-term demand concerns a source of pressure after the Valentine’s Day holiday, cocoa looks to have further downside left to go.
From reaching a 4 1/2 week low last Friday, the coffee market has seen an abrupt change in fortune this week as near-term demand concerns have been unable to apply lasting pressure on prices. With bullish supply developments providing support, coffee looks set for a continued advance.
March cotton closed higher again on Thursday after trading to another new contract high. The market has closed higher for five sessions straight, and the nearby contract has traded to its highest level since August 2018.
Sugar is closing in on finishing the tenth month of a longer-term uptrend in which prices have risen more than 55% in value and reached multi-year highs. While technical indicators have reached near-term overbought status and a key outside market has taken a negative shift, sugar prices should find decent support.
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