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.
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