ADMIS News
COCOA
Cocoa prices may not have strong upside momentum, but they continue to rally in spite of lukewarm to sluggish outside markets. Global demand has been in longer-term recovery move for most of this year, but it may be bullish supply developments that provide the fuel for cocoa’s November rally. Lower production from West Africa at the same time that global demand has been improving has helped the cocoa market lift far above last week’s 3 1/2 month lows.
COFFEE
Coffee prices have risen by nearly 16% in value over the past 7 sessions as they extend their upside breakout move. While the supply/demand outlook may justify prices at these current levels, coffee is near-term technically overbought and could be vulnerable to a near-term pullback. Supply issues with many of the world’s largest Arabica producing nations have underpinned coffee prices this week, highlighted by Brazil’s upcoming 2022/23 production crop falling as much as 10 million bags below their last “on-year” crop during the 2020/21 season.
COTTON
Cotton prices are on a 3-day winning streak, but they have failed to climb above their early November contract high for a second time in as many weeks. With the market having trouble reaching up into new high ground, the cotton market looks to be vulnerable to a sizable pullback in front of the Thanksgiving holiday next week.
SUGAR
Sugar prices have had trouble sustaining upside momentum over the past 3 months, but a sharp 2-day rally could indicate that they may be shaking off a coiling price pattern. If key outside markets can regain their strength, sugar could be heading for a retest of their mid-August highs.
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