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Bearish Demand News For Coffee


Cocoa prices were able to briefly find their footing, but near-term demand concerns continue to be a source of pressure. With bearish supply developments also weighing on prices, cocoa may remain on the defensive. The prospects for improved global demand provided strength to the cocoa market as COVID vaccines should receive wider distribution in developed economies.


Coffee prices remain well below their late February high and continue to receive bearish near-term demand news out of Europe. The market has held above the 50-day moving average and broke a 6-session losing streak, however, and was able to do so in spite of carryover pressure from a key outside market.


The stock market was moderately lower yesterday and the Dollar Index traded to its highest level since November 24, so outside markets clearly did not lend support to cotton, but the market managed a higher close on Monday. The trade seems to be consolidating a bit after last week’s selloff with the monthly USDA supply/demand report due out today,


Sugar prices continue to see coiling action as they were unable to sustain a recovery move through the weekend. Key outside markets are likely to be a source of pressure again today, but if the market can hold its ground above last Thursday’s low, the chart pattern will improve.


Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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