ADMIS News
COCOA
After two sessions with coiling price action, cocoa resumed its recovery rally as it found support from both the supply and demand sides of the market. With prices climbing back above two of the three major moving averages, cocoa is showing more signs that a longer-term low was put in last week.
COFFEE
While global risk sentiment remains volatile, coffee has bullish supply/demand factors that can help to extend the recovery from a 4-month low from last week. The Brazilian currency rallied to a new 8 1/2 month high, which provided carryover support to the coffee market as its recent currency strength eases pressure on Brazil’s farmers to market their near-term supply to foreign customers.
COTTON
The market has found support recently on strong cash market demand and a strong pace for US cotton exports. US export sales have been above 400,000 bales in each of the past four weeks, which is a strong pace for this point in the season. Traders are also concerned about dry conditions in west Texas.
SUGAR
Sugar prices have taken significant direction from the ebb and flow of key outside markets, but have also been pressured by bearish supply news over the past few weeks. The market has stayed well clear of its mid-March and late-February lows, however, and should benefit from stronger global risk sentiment.
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