ADMIS News
COCOA
While the market has received bullish supply developments over the past few months, cocoa has been unable to fully shake off near-term demand concerns. Harmattan winds have strengthened over West African growing areas during recent weeks, and that provided a boost to cocoa prices early in the day as that should have a negative impact on the region’s upcoming mid-crop output.
COFFEE
Coffee continues to have a bullish supply outlook, but the demand side of the market may lose some strength over the next few weeks. With global risk sentiment deteriorating, coffee remains vulnerable to additional long liquidation that would extend its correction from 10-year highs. The increasing potential for conflict in eastern Ukraine weighed heavily on global risk sentiment, and that pressured coffee prices as it weakens out-of-home consumption prospects.
COTTON
March cotton closed near unchanged yesterday after trading in a narrow range but also reaching its lowest level in three weeks. The weekly exports sales report was lower than expected, and traders are uncertain about the market with the Ukraine/Russia situation still unstable. The sharp drop in the US stock market plus weakness in the energy complex were seen as bearish forces.
SUGAR
Sugar prices were able to break a 5-session losing streak and are within striking distance of a positive weekly result as well. The market continues to hold its ground above its January low, and may be able to extend a recovery move into the weekend. May sugar was able to overcome a negative shift in global risk sentiment and key outside markets as they lifted clear of this week’s low. Energy prices remained on the defensive following their late slide on Wednesday, and that could have pressured sugar prices by further weakening near-term ethanol demand in Brazil.
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