Choppy to Higher Uptrend in Coffee
While cocoa has been reluctant to close above its 50-day moving average, the market remains well clear of last week’s 2 1/2 month lows. If global risk sentiment continues to improve, cocoa should be able to regain and sustain upside momentum.
Coffee has continued its coiling price pattern into the last week of October as the market has gradually climbed its way back towards a retest of its late July highs. With bullish supply developments and improving global demand, coffee may be heading for new multi-year highs.
December cotton closed slightly higher yesterday after spending the session inside Monday’s range. The market has been consolidating since putting in a contract high on October 7. The dollar was up for the second day in a row, which is not favorable to US export sales.
While it has been pressured by a sluggish Brazilian currency and an improving production outlook for India, Thailand and the EU, sugar continues to find underlying support from Brazilian supply developments. After a fresh reminder of this season’s Brazilian shortfall, sugar prices can maintain upside momentum.
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