ADMIS News
COCOA
Cocoa has seen two abrupt changes in fortune since late April, the net result of which has been a decline of 6 points from the April 28th close. While the market is likely to remain volatile, cocoa is showing more signs that a longer-term low has been put in. Although the longer-term outlook remains positive as COVID vaccines receive more widespread use, near-term demand concerns continue to shadow the cocoa market.
COFFEE
Coffee continues to have a bullish supply outlook to provide underlying support, so the market has stayed resilient in the face of negative global risk sentiment. With near-term demand likely to rebound by the end of the second quarter, coffee prices could remain in an uptrend.
COTTON
December cotton closed lower on Tuesday, but held Monday’s low. Outside market forces were mixed: The June Dollar Index closed modestly lower after trading to its lowest level since February 21, which should be supportive to cotton, but the S&P 500 was sharply lower, which is a negative. West Texas could get up to 0.5 inches of rain in the next five days, which it sorely needs.
SUGAR
Sugar prices have regained strong upside momentum, and have done so without the benefit of fresh carryover support from its key outside markets. An increasing bullish supply outlook should help the sugar market drive further into new high ground. July sugar reached a new multi-year high.
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