ADMIS News
COCOA
Cocoa prices have yet to find strong upside momentum this month, but held up fairly well in the face of sluggish global risk sentiment and weakness in its key outside markets. Near-term demand prospects remain a headwind to get past, so the cocoa market remains vulnerable to further downside action. Sluggish equity markets in Europe and the US put carryover pressure on cocoa prices as they may weaken the near-term demand outlook in both regions.
COFFEE
Coffee prices ran out of steam before they could climb back above the 50-day moving average for the first time since late February. The market remains well above its March lows, and continues to receive bullish supply news. Colombia March production 914,000 bags, down 13% from last year.
COTTON
May cotton is down this morning and closed lower yesterday and back towards the lower end of the range of the past nine sessions. The dollar was higher, and crude oil and the stock market were sharply lower, all of which are negative to cotton. Dry conditions persist in West Texas, which keeps concerns about US production this year in the spotlight.
SUGAR
Sugar prices have held within a relatively tight trading range so far this week at the upper end of the March/April recovery move. Crude oil and RBOB gasoline prices came under severe pressure yesterday which in turn weighed heavily on the sugar market as that may weaken near-term ethanol demand prospects.
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