ADMIS News
COCOA
Cocoa barely avoided a negative weekly reversal last week, but it has fallen 90 points (3.3%) from Thursday’s three-week high. Near-term demand is a concern, but the West African supply outlook is bullish. May Cocoa was down sharply on Friday and finished unchanged on the week. A sharp selloff in the Eurocurrency and a new 16-month low in the British Pound were sources of pressure, as extended currency weakness could make it more difficult for European grinders to acquire supply.
COFFEE
May coffee fell to its lowest level since November overnight, as there was a generally bearish tone across the markets on news of further lockdowns in China due to a Covid outbreak. Coffee continues to have trouble sustaining upside momentum; it has not been able to put together three positive days in a row since early February.
COTTON
May cotton gave back a good portion of Friday’s gains overnight, as several commodity and equity markets were down off news of Shenzhen, China being in lockdown due to Covid. This is their “Silicon Valley,” and Chinese tech stocks were down sharply. Cotton closed sharply higher on Friday after trading to its highest price level since March 2, encouraged by hopes for more Chinese buying, so the lockdown news is concerning.
SUGAR
May sugar is lower this morning, along with energies, equities, and several other commodities off reports that a Shenzhen, China is under lockdown due to Covid. May sugar saw choppy, volatile action last week, rattled by turbulence in outside markets. That turbulence has continued overnight, but the market has managed to hold Friday’s lows.
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