ADMIS News
COTTON
The market experienced follow through selling to help confirm a significant top pattern for December cotton. The hurricane hit hard in a small area of the Delta and the system moved very quickly to the East Coast so damage ideas have been reduced. The 6-10 day forecast calls for below normal precipitation and above normal temperatures across the cotton growing areas, which should give the fields a chance to dry out.
COCOA
December cocoa fell under pressure again and dropped to a new 2-week low. European and US equity markets were able to regain their strength, but that was more than offset by a sharp selloff in the Eurocurrency that weighed on cocoa prices as they will make it more difficult for European grinders to acquire near-term supplies. In addition, there were reports that Ivory Coast was having difficulty selling their remaining 2019/20 mid-crop cocoa supply due to the decline in global demand, and that also weighed on the cocoa market as that would add to this season’s newly-harvested main crop supplies.
COFFEE
Coffee has rejected breakout moves from its recent consolidation zone in both directions over the past 3 sessions, and that may point towards further consolidation short-term. Continued weakness in the Brazilian currency as it reached a new 5-month low weighed on the coffee market as that could make their nation’s producers more aggressive with marketing their near-term supply to foreign customers.
SUGAR
With global risk sentiment subdued, sugar could see significant long liquidation and profit-taking. The market has seen 3 pullbacks from a new high for the move of 3% or larger over the past 2 weeks, however, and that may be enough to fuel additional end-of-week and end-of-month long liquidation. March sugar was unable to shake off early pressure yesterday and finished with a heavy loss.
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