ADMIS News
COCOA
Cocoa prices were able to break a 6-session losing streak and have held their ground above their 3 major moving averages, and did so in spite of volatile global risk sentiment following the holiday weekend. While near-term demand concerns are unlikely to be fully resolved soon, cocoa continues to have bullish supply developments that are providing underlying support to the market.
COFFEE
Coffee prices have been fairly resilient during a rough start to this week’s trading. Concern over out-of-home consumption due to the flare-up of tensions between Ukraine and Russia weighed on coffee prices early yesterday. Global risk sentiment has gyrated wildly over the past sessions, and that may lead to lower business for restaurants and retail shops through month-end and beyond. Big plantings preliminary USDA estimate may pressure Dec
COTTON
May cotton closed lower yesterday but spent the day inside Friday’s range. The grain markets were sharply higher on concerns that the Ukraine/Russia crisis would affect exports out of the Black Sea region, but the cotton market was not impacted. Crude oil was sharply higher, at one point moving to new contract highs, but this did not seem to lend much support to cotton either. The cotton market took its cues from the stock market, which was sharply lower.
SUGAR
The market has lifted clear of its February lows. If key outside markets can remain strong, sugar can break out of its late January/February consolidation zone to the upside. While energy prices fell back from multi-year highs, they remained well supported early this week which provided sugar with significant carryover support. If Russian crude oil exports are significantly reduced, that should keep crude oil and RBOB gasoline at elevated levels, which in turn should give a boost to ethanol demand in Brazil and India.
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