Drop in Brazil Coffee Crop
In spite of near-term demand concerns, cocoa’s coiling action this week has kept prices above the mid-December spike low. With the market receiving some badly-needed bullish demand news, cocoa may complete a positive weekly reversal.
Coffee prices have been able to extend their recovery move and are on-track to test four month highs. While near-term demand remains a source of concern and global risk sentiment may be softening, coffee is finding bullish supply developments that can underpin prices.
March cotton closed moderately higher yesterday after a steep selloff on the open. The market seemed to reject the early spike lower, and a strong weekly export sales report seemed to spark additional buying.
After several sessions of coiling price action, sugar has regained upside momentum and reached the highest level since April 2017. Although it continues to receive bullish supply/demand news and carryover support from key outside markets, sugar has quickly returned to near-term overbought price levels.
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