Positive News From USDA For Cotton
While cocoa prices have held their ground above the December 21st spike low for more than 7 weeks, the market has been unable to sustain upside momentum as several rally attempts have run out of a steam within a week.
Near-term demand prospects remain subdued, but the market’s bullish longer-term supply factors can help coffee prices remain well-supported on a near-term pullback. Near-term demand concerns continue to weigh on prices as ICE exchange coffee stocks rose by 13,050 bags on Tuesday to reach their highest levels since June.
March cotton rallied sharply to a new contract high before the USDA update. After the release, May cotton fell 100 points only to recover the early gains into the close. The weaker US dollar was seen as a supportive force.
The market has been strengthened by key outside markets and bullish supply/demand developments. As long as global markets can hold onto a “risk on” mood, sugar can extend its longer-term upmove.
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