Explore Special Offers & White Papers from ADMIS

Softs Overview for May 28

COCOA

Cocoa remains in a volatile price pattern following the holiday weekend as it has been unable to fully shake global demand concerns in spite of positive outside markets. While it may have difficulty sustaining upside momentum, bullish near-term supply factors can help cocoa remain well supported. July cocoa closed well off of the highs yesterday.

COFFEE

While coffee continues to hold its ground above last Friday’s 3 1/2 month lows, an inability to sustain Tuesday’s recovery move indicates that demand concerns remain a front-and-center issue. Until there is some clear improvement from the demand front, coffee is likely to have difficulty sustaining upside momentum. July coffee came out of the holiday weekend with a positive tone, but fell back late in the day.

COTTON

The cotton market drew early support off of a lack of rainfall in Texas over the weekend, as the trade is growing concerned about the dry conditions there. Also, weakness in Indian rupee has traders concerned about increased competition for US cotton exports. The Cotton Association of India has lowered its 2019/20 Indian production estimate to 33 million Indian bales (equivalent to 27 million running bales), down from 35.5 million previously (29 million running bales).

SUGAR

Sugar has received plenty of near-term carryover support from key outside markets, but has been unable to climb above last week’s highs for the move. This indicates that sugar may be a little top-heavy at current price levels, and in spite of positive global risk sentiment remains vulnerable to a near-term pullback.

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2021 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started