ADMIS News
COTTON
July cotton led the rally yesterday and the buying pushed the market up to the highest level since April 28. The dollar broke sharply, which is supportive to US export commodities like cotton. The stock market rallied as well, with the S&P 500 closing in on last week’s all-time highs, which is supportive to cotton demand.
COCOA
Cocoa remains well below its late April high, but the market is now on-track for a positive weekly reversal from Tuesday’s 6-month low. Although near-term demand remains a concern, carryover support from key outside markets can help cocoa form some type of significant low.
COFFEE
Coffee prices continue to see strong upside momentum and have risen almost 14 cents in value (up 10%) over the past 2 sessions. The Brazilian currency gained more than 1.2% in value and reached a new 15-week high, which provided carryover support to coffee prices as its recent strength can help to ease pressure on Brazilian farmers to market their remaining 2020/21 coffee supplies.
SUGAR
Sugar prices continue to see volatile intra-day action due to key outside markets, but they have maintained upside momentum over the past few sessions. A slump in energy prices weighed on the sugar market as that may lead to softer Brazilian ethanol demand.
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