More Positive Demand For Cotton
The technical action in cocoa to start the trading week was mixed, with an eight-day high forged before setting back. A news wire report citing above average rainfall and sunny spells in Ivory Coast last week may have encouraged some selling.
March coffee sold of sharply and traded to its lowest level in a week yesterday. A report from Vietnam that their coffee exports are expected to drop 8.8% in 2020 may have provided some initial support, but it failed to hold the market very long.
The uptrend in cotton is intact, but divergence with momentum indicators at the recent highs puts the market in a precarious position. The market may have drawn some support yesterday from the signing of the Covid relief bill, but in general the day’s action was what you expect after the holiday – quiet.
March sugar continues to rally amid signs of strengthening demand. The market closed higher for the third straight session yesterday and rallied to the highest level since November 24.
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.