Drier Forecast for Cotton Crops
The market is seeing a bounce overnight but with a firm US dollar and a dry forecast for the next five days, the market could struggle to remain in a steep uptrend given the overbought condition. December cotton climbed over 72.00 for the first time since January 22.
With news of fresh coronavirus lockdowns in Europe, cocoa is unlikely to fully overcome global demand concerns until late in the fourth quarter. There have been bullish supply-side developments that have underpin the market, however, as cocoa prices may be able to maintain upside momentum short-term.
Coffee prices remain on the defensive as they are facing pressure from both the supply and demand sides of the market. There are signs that prices are slowing their descent, however. As focus shifts away from Brazilian production now that their harvest is complete, coffee has been able to benefit from some bullish supply-side developments.
While sugar prices remain in close proximity to Monday’s 7 1/2 month high, they have had back-to-back negative daily results for the first time since early September. With few fresh bullish supply/demand factors to provide near-term support, sugar will have to rely on stronger key outside markets in order to avoid long liquidation.
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.