Bullish Economic Tone For Cotton
Cocoa has not been able to sustain upside momentum since last November’s sharp rally, and has spent 2 months inside of a consolidation zone as near-term global demand concerns remain a major issue.
Coffee has seen wide price swings since the start of 2021, and the December/February consolidation has been a period of relative stability. Given the longer-term supply outlook, a rebound in demand should lift coffee prices well clear of the recent levels.
March cotton traded to a new contract high Friday and again this morning. The nearby contract traded to its highest level since August 2018. This followed another strong week of export sales reported on Thursday and a bullish USDA supply/demand report on Tuesday.
Sugar prices remain on-track for a tenth monthly gain in a row as they continue to find support from an improving demand outlook and stronger energy prices. For the week, May sugar finished with a loss of 6 ticks (down 0.4%) which was a negative weekly key reversal.
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.