ADMIS News
COCOA
Cocoa prices have seen a 187 point trading range over the past 3 sessions which resulted in its lowest closing price since mid-November. With bearish near-term supply factors outweighing a bullish longer-term demand outlook, cocoa looks to have further downside action ahead before it can find solid support.
COFFEE
Coffee prices continue to see downside follow-through from last Thursday’s negative daily reversal, but they remain near the top end of the April rally. While near-term demand remains uncertain, coffee has bullish supply factors than can provide the market with underlying support.
COTTON
December cotton closed slightly higher yesterday after clawing back some of its losses from the steep selloff last Thursday. The dollar sold off sharply, which is supportive to cotton. The market broke last week after west Texas received some much-needed rain, and the forecasts suggest the region will have the opportunity to receive more rainfall in the next two weeks.
SUGAR
Although it was pressured by bearish supply news, sugar prices should remain fairly well supported on a near-term pullback. July sugar fell back from its early highs as it finished Monday’s trading session with a sizable loss.
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.
