ADMIS News
COCOA
While cocoa continues to face pressure from near-term global demand issues, the market has rejected several downside breakout moves since mid-December. With a much more positive demand outlook for the second half of this year and beyond, cocoa may be in a position to extend a recovery move.
COFFEE
While coffee’s post-holiday rally ran out of steam, the market has once again climbed back to the upper portion of its recent consolidation zone. With demand showing some early signs of improvement as the market prepares for a sharp drop in Brazilian production, coffee may regain upside momentum and retest the mid-January high before the end of February.
COTTON
March cotton closed higher for the sixth session in a row on Friday and the market surged to new highs overnight even with weakness in equity markets. It has made new contract highs in five of the past six sessions.
SUGAR
Sugar prices have rallied to their highest levels in nearly 4 years with the front-month contracts in backwardation, but the March/May spread has been unable to retest its 1.09 cent from early November since the start of the year.
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.
