ADMIS News
COTTON
Friday’s USDA Supply/Demand report was viewed as bullish, as both US and world 2020/21 cotton ending stocks came in at or below the low end of expectations. US cotton production was left unchanged at 14.70 million bales versus an average trade estimate of 14.67 million and a range of 14.55-14.80 million, but exports were increased to 15.75 million bales from 15.50 million in March.
COCOA
Cocoa prices continue to be pressured by near-term demand concerns and will start this week at the bottom end of its March/April downmove. With the market still relatively well-supplied at the early stages of the West African mid-crop harvest, cocoa may need to see clearer signs that demand will improve before it can sustain a recovery move.
COFFEE
Coffee prices continue to deal with near-term demand issues, particularly from Europe, but are looking at a 2021/22 season expected to have a sizable global production deficit. As the global demand outlook improves, coffee should be able to extend its recovery move. For the week, however, May coffee finished with a gain of 6.65 cents (up 5.5%) which broke a 3-week losing streak.
SUGAR
After reaching a multi-year high in late February, sugar prices dropped 16% over the following five weeks due in large part to heavy pressure from outside markets. However, the prospect that Brazil’s 2021/22 Center-South sugar production will have a sizable decline from this season continues to fuel sugar’s recovery move.
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