ADMIS News
COCOA
Cocoa was unable to shake off a volatile trading pattern last week as the ebb and flow of key outside markets have kept near-term demand concerns in a front and center position. The longer-term demand outlook remains positive, however, and there have been some bullish supply-side developments that can help cocoa remain fairly well supported on near-term pullbacks.
COFFEE
Since reaching a contract high during the first week of May, July coffee has only had 1 positive daily result over the past 6 sessions and lost more than 10 cents (down 6.7%) in value. Although near-term European demand concerns have weighed on the market, coffee continues to have a bullish global supply outlook that can help the market find its footing.
COTTON
Rain coming to west Texas has turned the outlook for cotton bearish and has sparked some heavy long liquidation. After almost a year of dry conditions, the unirrigated regions of west Texas are finally starting to see chances of substantial rainfall. During the 24-hour period ending Sunday at 6:00 AM, Lubbock saw as much as 1.5 inches and over the last seven days, most of the region has seen anywhere from 0.5 to 2 inches.
SUGAR
Sugar’s Wednesday/Friday downdraft has taken prices more than 1.2 cents (down 7%) below their contract highs as bearish demand developments rattled an overbought market. While these demand-side issues may be a source of headwinds, sugar has bullish supply factor that can help prices find their footing.
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