ADMIS News
COCOA
Since falling back from a multi-year high early this month, cocoa prices have made three attempts to rally, all of which were followed by sharp selloffs. While the market rebounded on Friday, cocoa is likely to see further downside price action before it can find a near-term floor.
COFFEE
Since plunging more than 42 cents below a multi-year high in late July, coffee prices has seen 2 extended recovery moves run out of steam. With signs that global demand is on the mend, however, coffee’s current recovery move has a good chance to see follow-through buying.
COTTON
December cotton surged higher on Friday to close up for the fourth session in a row, and the market pushed to new contract highs this morning. The five day forecast models show hefty rain totals for parts of the Delta but mostly Texas and heavy rains with bolls open could cause quality issues. In addition, pink bollworm has hurt the India crop and may lower the production outlook.
SUGAR
Sugar prices have stronger energy to provide underlying support, but have been unable to sustain upside momentum since a negative daily reversal at the end of August. Brazilian supply issues continue to underpin prices, however, so a fresh reminder of this season’s lower production could help sugar prices turn back to the upside.
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