ADMIS News
COCOA
Cocoa prices have consolidated above last Thursday’s 2 1/2 month low, but they are facing pressure from sluggish global risk sentiment and bearish near-term supply news. If a “risk on” mood redevelops in global markets, however, cocoa should be a major beneficiary given its bullish longer-term demand outlook. There was heavier than normal rainfall over West African growing areas last week, and that weighed on cocoa prices as that should benefit the region’s upcoming mid-crop production.
COFFEE
After falling more than 50.00 cents in value (down 19.3%) in 4 1/2 weeks, coffee prices have regained 13.50 cents of those losses during the past 4 sessions. With a bullish supply outlook providing support, coffee should be able to maintain upside momentum.
COTTON
May cotton gapped higher yesterday and traded to new contract highs. Traders noted heavy speculator buying yesterday and heavy commercial trader buying on Friday. Global near-term supply is tight. US cotton export sales are ahead of schedule, and the Brazilian crop is not available yet. There are also concerns that the Indian crop is short, suggesting a lack of available near term supplies.
SUGAR
Sugar prices benefited from strength in key outside markets as they have recovered half of their mid-March pullback. A shift in focus back towards Brazil can lead t a bullish shift in the supply outlook, and that can help sugar prices maintain upside momentum. May sugar broke out of its recent consolidation zone to the upside as it reached a new 1-week high.
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