Higher Coffee Demand Support
Cocoa prices have followed through on their downside breakout and have reached the lowest levels since last November. While the longer-term outlook remains positive, near-term demand concerns remain a source of pressure this week.
Coffee prices have extended this week’s rally and have risen to the upper portion of their recent consolidation range. While near-term demand remains subdued, coffee has a bullish supply outlook that can fuel an extended upside move.
Cotton closed higher yesterday as the market did not follow outside market forces. The dollar broke out of its recent consolidation to the upside yesterday, which was a negative outside factor for cotton. Aside from that, the market still sees strong cotton demand.
Sugar has climbed further up into multi-year high territory as it continues to find carryover support from energy markets. With several bullish supply/demand factors working in its favor, sugar should be able to extend this rally even if energy prices run out of steam late this week.
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