ADMIS News
COCOA
After the close, the National Confectioners Association released their fourth quarter North American grindings total which came in at 116,614 tonnes. This was a decline of 1.21% from last year’s total, and was in contrast to trade forecasts for a year-over-year gain of 2% to 8%.
COFFEE
The market remains on-course for a third positive weekly result in a row to start out 2022. While global risk sentiment has taken a negative shift, coffee should remain well supported on breaks. A La Nina weather event will negatively impact upcoming production from Brazil and Colombia, which continues to underpin coffee prices early this year as those 2 nations account for over 54% of global Arabica output.
COTTON
March cotton closed lower on the session yesterday after hitting (matching) contract highs, and the key reversal is seen as a bearish technical development. The stock market was higher early in the session but sold off late in the morning, which was negative to cotton.
SUGAR
Energy prices have followed through to the downside with sizable losses early in today’s action, and that will be a source of carryover pressure on the sugar market. After regaining nearly 10% in value from last week’s 6-month low, sugar’s recovery move appears to have run out of steam.
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