Softs Report - Friday, Aug. 7

COTTON
General Comments: Cotton was little changed yesterday as ideas of lower yields and weather stress continue and as demand was solid in the USDA reports. USDA showed that conditions are still well behind year ago levels and showed deterioration last week with the crop in the squaring and setting bolls phase. Progress is about average, with bolls being set and squaring proceeding at a normal pace. Forecasts and reports of scattered to isolated showers in Cotton areas continue for the Delts, and the Southeast. Temperatures will be warm to hot. Trends are mixed on the daily and are up the weekly charts.
Chart Trends: Trends in Cotton are mixed. Support is at 77.10, 75.50, and 74.50 December, with resistance of 84.30, 86.20 and 88.10 December.

FCOJ
General Comments: Futures were lower yesterday and trends are turning down on the daily charts but could be topping out for the short term. It is still dry in Florida. The weather for the next crop is dry but seasonal and some rains are now being reported. The weather is considered good for production in Mexico but it is dry in Brazil. Scattered showers are still reported in eastern Brazil but many areas are drying out seasonally.
Chart Trends: Trends in FCOJ are mixed to down. Support is at 144.00, 140.00, and 135.00 September, with resistance at 167,00 174.00, and 176.00 September.

COFFEE
General Comments: New York and London were lower and trends are mixed on the daily charts. The harvest delays in Brazil continue but coffee is more and more available and the increased offer was responsible for the selling. The next crop is developing well in South America amid scattered to isolated showers. Brazil has been hot and dry Indonesia is now about 80% harvested. Asian conditions are called good. Other world production conditions are generally good. Mexico is in good condition, but Central America is dry. Deliverable stocks are below 300,000 bags and are well below last year.
Overnight News: The ICO average price is 280.22 ct/lb.
Chart Trends: Trends in New York are mixed. Support is at 307.00, 300.00, and 296.00 September, and resistance is at 346.00, 352.00 and 357.00 September. Trends in London are mixed. Support is at 3740, 3690, and 3620 September, with resistance at 3930, 4130, and 4180 September.
SUGAR
General Comments: New York and London were higher again yesterday. The Iran war made bio fuels less valuable again, and Sugar has been slow to respond to rallies in petroleum products anyway. Drought in Europe and Brail are a major concern. The hot and dry weather is causing losses Sugarbeets production. There have been some rains in center-south Brazil causing some harvest delas, but generally dry weather is now forecast. The Iran war has been paused as both sides signing a memorandum of understanding and continuing negotiations in Geneva. Trends are mixed on the daily charts in both markets. There are good supplies for the market from good growing conditions for cane and beets around the world. Drier weather in parts of Brazil and India has been good for the harvest.
Chart Trends: Trends in New York are mixed. Support is at 1500, 1480, and 1440 October and resistance is 1590, 1620, and 1650 October. Trends in London are mixed. Support is at 480.00, 471.00, and 460.00 October, with resistance at 490.00, 496.00, and 502.00 October.

COCOA
General Comments: New York and London were lower again yesterday. Daily chart trends are turning fown again and weekly trends are mixed. A big main crop harvest has arrived in West Africa and rains have been positive for the next crop. There are still reports of increased production potential in other countries outside of West Africa, including Asia and Central America. The market feels that there is less demand due to the high prices seen last year but demand has started to increase. Ghana’s cocoa production is expected to fall by at Ghana’s cocoa production is expected to fall by at least 16% in the 2026 to 2027 season, market regulator COCOBOD said, citing weather effects, the crop’s natural fruit-bearing cycle and disease, The weather is also hurting crops in Ivory Coast.
Chart Trends: Trends in New York are mixed to down. Support is at 5360, 3760, and 3660 September, with resistance at 6220, 6480, and 6600 September. Trends in London are mixed. Support is at 4020, 3660, and 3540 September, with resistance at 4570, 4820, and 4940 September.