Resumption of Uptrend For Cocoa
Cocoa prices have regained upside momentum and remain in close proximity to last Wednesday’s multi-year high. While the market is finding fresh support from positive supply/demand news, a negative shift in global risk sentiment could fuel a near-term pullback.
Coffee prices continue to have trouble sustaining upside momentum, but they are holding up fairly well in spite of the negative shift in global risk sentiment. With bullish supply/demand factors providing support, coffee may be setting up for a longer-term upside move.
December cotton continues to consolidate in a choppy trading range since mid-August. Traders are concerned that as Hurricane Nicholas makes landfall and brings heavy rains to eastern Texas, Louisiana, and much of Mississippi and Alabama, it could damage some of the cotton crop.
Sugar prices have not had two positive daily results in a row since late August as the market has been pressured by bearish supply-side developments. With Brazil looking at a sizable decline in production during the 2021/22 season, however, sugar may be closing in on a near-term low.
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.