ADMIS News
COCOA
Cocoa did not see upside follow-through from Monday’s outside-day higher close, which indicates that ample near-term supply and still-recovering near-term demand continues to be sources of pressure. The market has stayed clear of last week’s low and above the 2021 low from early May.
COFFEE
Coffee prices are still more than 25 cents higher for the second quarter (up 20.3% in value), but they have fallen well below their early June consolidation zone this week. While near-term demand remains a concern (particularly for Europe), coffee’s bullish supply outlook should help the market find support soon.
COTTON
December cotton closed higher on Tuesday, but was confined to Monday’s range throughout the session. More importantly, the market held Monday’s spike low with a wide margin. The market also held up in the face of continued steep declines in corn and soybeans.
SUGAR
October sugar has closed lower for four sessions in a row. The rapid spread of India’s monsoon rainfall this year has weighed on sugar prices this week as that precipitation should benefit both this year’s and next year’s Indian cane crops. In addition, Thailand’s 2021/22 sugar production is expected to see a sizable uptick from the low levels seen during the 2019/20 and 2020/21 seasons.
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