ADMIS News
COCOA
A sizable rally in European and US equity markets helped cocoa prices to stabilize. This may help to shore up near-term demand prospects in both regions. A new multi-year low for the Eurocurrency was a source of early pressure on the cocoa market as extended weakness in that currency could make it more difficult for Euro zone grinders to acquire near-term supply. Of the 12 nations who are expected to grind 100,000 tonnes or more of cocoa during the 2021/22 season, only Canada is forecast to see a decline from their 2020/21 grindings total.
COFFEE
Coffee has been unable to sustain upside moves for longer than 2 sessions in a row since reaching a multi-year high in mid-February. A more than 30.00 cent selloff over that timeframe should significantly reduce coffee’s net spec long position which can help the market find a near-term low soon. A more than 2% rebound from a new 2-week low in the Brazilian currency provided the coffee market with early carryover support as that can help to ease pressure on Brazilian farmers to market their remaining near-term supply.
COTTON
May cotton closed sharply lower yesterday after an almost mirror image of Monday’s sharply higher day. It was an inside day, but the close back under 119.67 is a bearish technical development. This was despite another sharply higher day for crude oil, which traded to its highest level since May 2011. Traders blamed profit taking for the selloff in cotton.
SUGAR
Sugar prices have gained more than 1.00 cent in value so far this week (up 5.9%) as they continue to benefit from the updraft in energy prices following Russia’s invasion of Ukraine. While this leaves the market vulnerable to a near-term pullback if energy prices swiftly turn to the downside, bullish supply/demand factors can help sugar to hold its ground above its February consolidation zone.
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