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Cotton Closed Sharply Higher


While there are divergent opinions on West African production prospects this season, there is a general consensus that as COVID restrictions are relaxed, global demand will continue to improve. While the market may see continued volatility through month-end, cocoa prices should find underlying support.


Coffee prices remain in a steady uptrend. The market has a generally bullish supply/demand outlook, and that should help coffee prices find support on near-term pullbacks. The Brazilian currency was unable to extend its recovery move into Wednesday, which in turn put carryover pressure on coffee prices.


December cotton closed sharply higher yesterday after trading outside the range of the previous two days. Reports that the US and China are engaging in trade talks lent support to the market. So far this marketing year, China has been the buyer on roughly one-third of all US cotton export sales.


Sugar prices may remain well below their early October high, but they have been able to maintain upside momentum in the face of slumping energy prices. With this week’s bullish shift in the Brazilian supply outlook, sugar may be able to see independent strength over the near-term.

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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