Choppy Trade Short Term in Cocoa
Cocoa prices have been unable to find their footing as they are currently on a 4-session losing streak. Uncertainty over AstraZeneca vaccine usage has clouded the near-term European demand outlook, and that continues to weigh heavily on cocoa prices.
While coffee prices have seen choppy action this week, the market has also seen a pattern of higher lows over that timeframe. Events after the close can help prices regain some upside momentum today.
The turn down in the stock market and turn up in the US dollar overnight helped to spark selling early today. May cotton closed lower on the session yesterday but stayed within the previous day’s range for the second session in a row. One thing that seems to be pressuring cotton is wet weather in the southern part of the US, which could improve growing conditions for this year’s crop. West Texas is expected some rain now and another event next week.
Sugar prices have traded at both the top and the bottom of their March consolidation zone this week as the market continues to have trouble sustaining momentum. However, following the FOMC meeting results, both the Brazilian Real and crude oil rallied which in turn provided carryover support to this morning.
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