Uptrend in Sugar?
Cocoa prices have been resilient in the face of mixed results from its key outside markets as they have seen eight positive daily results over the past 9 sessions. With global demand prospects on the mend, cocoa can extend this recovery move.
Coffee’s bullish longer-term supply/demand outlook has helped to lift prices well above the early November lows, but their 17 cents in gains over 8 sessions in late February may have been “too much, too quickly” given that many regions of the world are still under COVID restrictions.
May cotton pushed lower yesterday but spent the day inside Monday’s range. The dollar was weaker, and corn and soybeans were higher, all of which should be supportive to cotton.
While sugar was able to put some brakes on its recent pullback, one of its key outside markets had a negative change in tone. As a result, sugar prices may be put back on the defensive.
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