ADMIS News
COCOA
A pullback in US equity markets, the Eurocurrency and British Pound were all sources of carryover pressure on cocoa prices yesterday as they point towards weaker near-term demand in both regions. There was also additional long liquidation in front of first quarter grindings results for North America and from Asia.
COFFEE
After 6 sessions in a row without a positive daily result, coffee is now on-track for a positive close for the week. Russia’s new offensive in Ukraine weighed on the coffee market early on as that could continue to weigh on out-of-home European coffee consumption. Later in the day, however, the USDA forecast Chinese coffee imports would rise 5% up to 4 million bags this year, which provided coffee with underlying support.
COTTON
July cotton traded lower yesterday after trading to the lowest level since April 13th before a bounce. Outside market forces were mixed. The dollar recovered to higher on the day after a steep selloff overnight, and this and a weaker stock market put some pressure on cotton. The weekly US Drought Monitor reported that moderate to exceptional drought (D1 to D4) continued to worsen in many areas west of a line stretching across eastern sections of Oklahoma and Texas.
SUGAR
Sugar prices appear to have put some near-term brakes on its downside breakout, but continues to be pressured by bearish supply news from India and Thailand. Unless key outside markets can find additional strength, sugar remains vulnerable to a correction.
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