ADMIS News
COCOA
Cocoa has dealt with near-term demand issues since the early stages of the COVID pandemic over 2 years ago, so it was no surprise that it was a major beneficiary of a positive turnaround in global risk sentiment. Cocoa also has bullish supply factors to provide support and keep the market in close proximity to its recent highs.
COFFEE
Coffee prices were unable to extend their recovery move in spite of a significant positive turnaround in global risk sentiment. With a bullish supply outlook continuing to provide support, coffee should avoid a sizable downside move.
COTTON
May cotton closed moderately lower on the session yesterday after trading higher overnight. The market seemed to react negatively to the USDA supply/demand report, but not in a dramatic way. The report was mixed, US data came in on the bearish side of expectations, and the world numbers were bullish. US 2021/22 cotton ending stocks came in at 3.50 million bales, unchanged from February and above the average trade expectation of 3.37 million (range 3.10-3.65 million). Traders remain concerned that the record high prices for food and energy could negatively impact demand.
SUGAR
Sugar’s March rally has been driven by the strength of key outside markets, so it was little surprise that sugar came under significant pressure. A rally to an 8-month high in the Brazilian currency provided a mild boost to sugar prices, but that was more than offset by the massive washout in crude oil and RBOB gasoline prices that put severe carryover pressure on the sugar market.
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