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Cocoa Higher, Most Softs Lower

COCOA

Cocoa will continue to face demand concerns until virus restrictions are reduced or eliminated. Strength in several key outside markets reflect optimism that will occur in one major region by the end of this year, and that has helped cocoa prices to grind their way to the upside.

COFFEE

Coffee’s updraft has lifted prices nearly 14.00 cents above their mid-June contract lows (up 14.6%), which provides additional evidence that a longer-term low has been put in. September coffee busted out of its recent consolidation zone and reached a 9-week high.

COTTON

The outside day down yesterday is a bearish technical development and suggests a further downside correction below Monday’s low may be in order. Traders are nervous with the China/US trade relations and if trade tensions escalate, traders are nervous that some US cotton on the books with China could get canceled.

SUGAR

Sugar prices are holding their ground within the near-term consolidation zone, but have not able to climb back towards the upper end of their June/July trading range. With a bearish 2020/21 supply output remaining a front and center issue for the market, sugar will need much more carryover support from key outside markets to lift clear of its recent lows.

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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