ADMIS News
COCOA
While cocoa’s longer-term demand outlook remains positive, near-term demand continues to reflect the ebb and flow of new COVID case counts and global risk sentiment. Although it had a setback in key outside markets, cocoa should be able to find solid support well above its April lows.
COFFEE
Coffee prices have found support from a bullish supply outlook, and are now starting to see signs of demand improvement as well. While more than 20.00 cents in gains during April leave the market vulnerable to month-end profit-taking, coffee should still be heading for higher price levels during the second quarter.
COTTON
December cotton closed sharply higher yesterday but is trading moderately lower this morning. The buying pushed the market up to the highest level since its peak day on February 25. This was despite sharply lower days in corn and soybeans, which had become extremely overbought.
SUGAR
After a 2-day pause late last week, sugar prices have driven sharply to the upside and are on-track for a 20% gain for the month of April. While the supply outlook remains bullish, sugar may be vulnerable to long liquidation and profit-taking if its key outside markets take a negative shift. A rebound in energy prices provided a fresh source of carryover support to the sugar market as that can help to shore up Brazilian domestic ethanol demand.
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