ADMIS News
COCOA
The sweeping reversal for March cocoa after hitting key support at 2466 is a bullish technical development. This leaves the market vulnerable to a resumption of the uptrend; especially if resistance is violated.
COFFEE
While coffee has been pressured by near-term demand concerns, the market has been finding supply-side support that has helped to keep prices in proximity to last week’s 3-month high. Coffee should remain well supported on near-term pullbacks.
COTTON
March cotton sold off sharply yesterday after failing to take out last week’s highs. Worries about reports of a new, more contagious variant of the coronavirus has fueled traders’ concerns about demand.
SUGAR
While sugar remains at the lower end of its November/December downtrend, the market has been able to grind its way higher over the past week. A “risk off” mood in global markets led to sizable losses in energy prices which put significant carryover pressure on the sugar market as that may dampen near-term Brazilian ethanol demand prospects.
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.
