Explore Special Offers & White Papers from AFS

Short-Term Low For Cocoa


A close above 104.40 may confirm short-term low. While the demand outlook remains subdued through the end of the year, a post-election rebound in global risk sentiment has helped to soothe some near-term demand concerns. With West African supply becoming a front and center issues, cocoa is in position to rally.


In spite of whipsaw price action over the past few weeks, coffee still remains in its late October/November consolidation zone. The market is now on-track for a positive weekly reversal from a 3 1/2 month low, however, and now has bullish supply news and a key outside market working in its favor.


December cotton once again turned down after hitting resistance levels as the market seems to have turned lower after the October 28 reversal. However, the market is still vulnerable to a surprise cut in production for the upcoming USDA supply/demand report. The stock market broke into new high ground and the dollar broke sharply, and both these moves should be supportive to cotton consumption and US export potential.


Sugar has been one of the few commodity markets that has seen relatively calmer price action following the US election. The market is vulnerable to more long liquidation. Energy prices could not hold onto their early strength as crude oil fell into negative territory yesterday, and that carryover pressure weakened sugar as it limits the potential for near-term Brazilian domestic ethanol demand improvement.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from Archer Financial Services

Get Started

Contact Us Today