Explore Special Offers & White Papers from AFS

Massive Buying in Cotton


Given recent bullish supply/demand developments, cocoa should remain fairly well supported on pullbacks. Strength in European and US equity markets provided cocoa with carryover support as they are helping to soothe near-term global demand concerns.


Coffee prices may have a volatile finish to the week, but Brazilian longer-term supply issues should underpin prices above Tuesday’s low. The market has had trouble sustaining upside momentum since the start of August, but the market has held above its 50-day moving average since late September. With signs of improving global demand as the market faces the impact of the freeze, coffee should extend its recovery move.


December cotton surged to yet another new contract high this morning and the market closed higher on the session yesterday and up for the 12th time in the last 13 trading sessions. Massive buying on fears of major US and India crop damage. Traders may have been disappointed with the weekly export sales report, which did not see the blistering level of sales of the previous week.


Consolidation is normally a continuation pattern. Sugar’s coiling action since a mid-September low has seen the market trade both sides of the key 20.00 cent price level. If stronger global risk sentiment can get both of its key outside markets moving higher at the same time, sugar could see a continuation of the uptrend soon.

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