Explore Special Offers & White Papers from AFS

Key Reversal in Cotton Ahead of USDA Report


Cocoa prices have seen coiling price action since mid-December as near-term demand concerns have made it difficult to maintain upside momentum. The market continues to hold its ground above the mid-December lows, however, as a positive longer-term demand outlook has helped to underpin prices.


Although it will start this week firmly within its recent consolidation zone, coffee may be on the verge of an extended upside move. For the week, May coffee finished with a gain of 1.65 cents (up 1.3%) which broke a 2-week losing streak.


A key reversal from the contract high on Friday for Cotton with the sharply lower close is a bearish technical development. The reversal suggests a near term peak may be in place. Part of the rally has been based on ideas that Chinese demand will stay strong and that US ending stocks will continue to tighten.


The market pushed up to a new contract high this morning. While it clearly benefited from strength in key outside markets, sugar has also found support from bullish supply/demand factors. If global markets can sustain a “risk on” mood, sugar can climb up to multi-year highs.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from Archer Financial Services

Get Started

Contact Us Today