ADMIS News
COCOA
Cocoa’s vicious whipsaw action during Thursday and Friday left a 2-day price range that was 64 points larger than the combined range of the previous 13 sessions. Although the longer-term demand outlook remains positive, cocoa is likely to see additional downside follow-through until the market can find its footing.
COFFEE
In spite of bullish developments, coffee was unable to avoid end-of-week and end-of-month profit-taking and long liquidation. With a bullish supply outlook and improving demand prospects, coffee may be able to find a near-term floor soon.
COTTON
Cotton appears to be consolidating its recent move. On Friday it closed higher, managing to retrace roughly half of its losses from the previous session with an inside trading day. The market found support from indications that China would be importing more cotton this year.
SUGAR
While it avoided a negative weekly key reversal, sugar remains vulnerable to additional long liquidation and profit-taking. For the week, July sugar finished with a gain of 10 ticks (up 0.6%) which was a fourth positive weekly result in a row. Sharp selloffs in crude oil, RBOB gasoline and the Brazilian currency all weighed heavily on sugar as their weakness may encourage Brazil’s Center-South mills to produce more sugar for the global export marketplace.
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