Outside Markets Support Sugar
Cocoa has extended its downtrend more than 300 points below its late November high, but the market appears to have found its footing before it traded below its 50-day and 100-day moving averages. Near-term demand remains a concern, but the longer-term outlook is positive which can help support.
While demand remains an issue, a shift in focus towards upcoming production can help coffee prices remain in a short-term uptrend. A rebound in the Brazilian currency provided coffee with carryover support as that eases pressure on Brazil’s farmers to market their near-term supply to foreign customers.
March cotton closed sharply higher on the session yesterday with a big range-up day that took it to its highest level since early August 2018. The market remains on track for a test of the contract high at 79.51. The market reacted favorably to the weekly export sales report which came in strong for the second week in a row.
Sugar has extended its winning streak to 3 sessions and is on-course for a higher close this week. While key outside markets have been providing carryover support, sugar continues to see bearish supply developments that should limit further upside going into the weekend.
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