ADMIS News
COCOA
With near-term demand still an area of concern, this season’s record global production continues to hold back the cocoa market from extending a recovery move. Although there are signs that European nations will be relaxing their COVID restrictions this summer, reports of fresh lockdown measures in several Asian nations has cast into doubt expectations for demand improvement in that region, and that weighed on cocoa prices as Asia has been seen as the “engine” for global cocoa demand growth for several years now.
COFFEE
While coffee prices have seen 5 of its last 6 sessions with a daily trading range of 5.00 cents or larger, the last 3 closes have only been within a 1.30 cent range with both of June’s closes more than 4 cents below their daily high. Although the market continues to have a bullish supply outlook, coffee’s second quarter rally may be running out of upside momentum and may be vulnerable to a near-term pullback.
COTTON
December cotton closed slightly lower yesterday, but stayed inside Tuesday’s upside breakout range. Tuesday’s weekly crop progress report showed Texas cotton crop conditions were well behind normal, and this provided underlying support. The dollar came in strong and this put pressure on the cotton market.
SUGAR
July sugar continued to see volatile price action as it fell back from an early 3-week high yesterday. A new 1-year high for crude oil prices and a new 5-month high in the Brazilian currency provided the sugar market with carryover support as strength in both markets should encourage Brazil’s Center-South mills to produce more ethanol at the expense of sugar.
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