ADMIS News
COCOA
Cocoa prices are within striking distance of a new 4-month high. With the market receiving fresh bullish supply developments, cocoa can extend its uptrend. A positive turnaround in global risk sentiment offset a mild pullback in the Eurocurrency to provide cocoa prices with underlying support as that can help to shore up near-term demand prospects
COFFEE
The upside breakout yesterday has put the coffee market within 2.00 cents of a new 10-year high. With bullish supply news being received on a daily basis, coffee prices look to heading into new high ground. ICE exchange coffee stocks declined by 17,864 bags on Tuesday to reach a new 22-year low, which is evidence of tightening near-term supplies in major consuming nations.
COTTON
The USDA update should move the market today. May cotton closed higher yesterday as it continued to consolidate ahead of the Supply/Demand report. The market is still under the negative technical influence of the key reversal from Friday. The trade is not looking for much of a change in the US balance sheet, with only a minor increase in production and ending stocks and a minor decrease in exports. They are also expecting a slight decrease in world ending stocks.
SUGAR
Sugar prices are more than 2.50 cents below their mid-November highs, but they continue to hold their ground above the early January low. If global risk sentiment and key outside markets can sustain a positive tone, a minor supply disruption may be enough for the market to form a low. A sharp selloff in crude oil and RBOB gasoline prices weighed on the sugar market early yesterday as that may diminish near-term ethanol demand prospects.
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