ADMIS News
COCOA
Cocoa has followed a 4-session/220 point selloff with a 4-session/204 point rebound as the market has climbed back above its 3 major moving averages again. A negative shift in global risk sentiment could become a source of headwinds, so cocoa could see volatile price action over the next few sessions.
COFFEE
Coffee continues to have a bullish supply outlook, but the Wed/Thurs updraft may have lifted prices too high and too fast. While the market has fallen back from overbought levels, coffee could see additional downside follow-through. While several Euro zone nations are looking at relaxed COVID restrictions by the end of the month, subdued European demand continues to weigh on coffee prices.
COTTON
December cotton continues to consolidate. The June Dollar Index traded to its lowest level since February 25 at one point yesterday but managed to bounce off its lows, and the S&P 500 was down after failing to take out Friday’s all-time highs. The 1-5-day forecast is calling for rain amounts of 0.1-0.5 inches for West Texas, with the heaviest rains in the east. Almost the entire cotton belt from Texas through the Delta to the East coast are expected to get substantial rainfall in the next five days.
SUGAR
The market has consolidated near the April/May highs and should still benefit from a bullish supply outlook and remain fairly well supported on near-term pullbacks. The energy prices gave up sizable early gains following the Colonial Pipeline shutdown and fell all the way into negative territory, which put significant carryover pressure on the sugar market as an extended pullback could weaken near-term Brazilian ethanol demand.
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