Cotton Market Inches Lower
The cotton market continues to inch lower, but consolidated yesterday as sellers are not too confident before there is more known about any crop damage from flooding issues. If there is not significant damage, the market looks vulnerable to significant long liquidation selling over the near term.
The cocoa market will continue to face global demand concerns through the rest of 2020, particularly with many areas instituting significant restrictions on Halloween holiday activity. Potential supply issues with the world’s top producing nation has helped cocoa prices hold support.
While the European demand outlook has been rattled by the prospect of new coronavirus lockdowns, overall global demand has improved since the second quarter which can help coffee prices find their footing. December coffee bounced off of a 9-week low, but closed with a modest loss and an eighth negative daily result in a row.
Sugar’s recovery move may be running out of near-term steam after this week’s choppy price action left the market below its mid-August highs. Sugar continues to be pressured by a key outside market and a bearish longer-term supply outlook.
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