ADMIS News
COCOA
While the cocoa market is still on-course for a positive weekly result, yesterday’s negative turnaround came in spite of carryover support from a key outside market sector. While cocoa could have a downbeat finish to this week’s action, it continues to have bullish supply factors that should keep prices fairly well supported.
COFFEE
Coffee’s recovery move has run out of steam as the market is back in danger of posting a sixth negative weekly result in a row. While its net spec long position remains large enough to fuel a wave of profit-taking and additional long liquidation, coffee has improving global risk sentiment and bullish supply factors to provide the market with underlying support.
COTTON
May cotton closed higher yesterday as it consolidated its move to new contract highs this week. The weekly US drought monitor map showed reductions in drought intensity for Oklahoma and the Texas Panhandle, but not so in the unirrigated regions of west Texas, where conditions worsened.
SUGAR
Sugar prices lost strength from their key outside markets yesterday but remain on-track for a positive weekly result. With ethanol demand likely to see significant improvement this year, sugar prices should remain well supported on near-term pullbacks.
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.
