ADMIS News
COCOA
Cocoa remains on-track for a fifth record high global grindings total over the past 6 seasons, but near-term demand concerns continue to weigh on market sentiment. With what is likely to be an eventful session, cocoa is vulnerable to further downside price action.
COFFEE
While coffee has yet to regain strong upside momentum, the market is staying clear of last Friday’s low and the late November lows. The Brazilian currency gave up early strength and reached a 1-week low, and that put carryover pressure on the coffee market, while ongoing concern over the Omicron COVID variant also weighed on coffee prices as that may lead to lower restaurant and retail shop consumption.
COTTON
March cotton closed lower yesterday and near the bottom of its trading range of the past six sessions. The dollar was slightly higher, and the stock market was lower, and both factors had a negative effect on cotton prices. Traders are awaiting the outcome of the FOMC meeting today for an indication of how much the Fed will pull back from its loose monetary policy.
SUGAR
While sugar has been unable to retest last Thursday’s high, it continues to hold its ground well above the early December lows in spite of sluggish key outside markets. If global risk sentiment can regain a positive tone, sugar should extend its December recovery move further to the upside.
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