Softs Report - Mon., July 27

COTTON
General Comments: Cotton was higher last week on weather concerns but gave back the best gains of the day as speculative profit taking was felt. Geopolitical problems in the Middle East are stronger The export sales report was weak. USDA showed that conditions are still well behind year ago levels and showed deterioration with the crop in the squaring and setting bolls phase. Progress is about average, with bolls starting to be set and squaring proceeding at a normal pace. Forecasts and reports of scattered showers in Cotton areas continue for the Delts, and the Southeast. Temperatures will be warm. Trends are mixed on the daily and the weekly charts.
Overnight News:
Chart Trends: Trends in Cotton are mixed. Support is at 77.10, 75.50, and 74.50 December, with resistance of 82.90, 84.20 and 86.20 December.

FCOJ
General Comments: Futures were higher last week and trends are still mixed 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. The Trump administration has exempted oranges and orange juice from the new round of tariffs announced on Brazil.
Overnight News: ICE said that 10 notices were posted for delivery against July futures and that total deliveries for the month are now 48 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 134.00, 128.00, and 122.00 September, with resistance at 167,00 174.00, and 176.00 September.

SUGAR
General Comments: New York and London were lower last week, with London the weaker market. The Iran war made bio fuels more valuable again, but Sugar has been slow to respond to rallies in petroleum products. Drought in Europe and Brail are a major concern. The hot and dry weather is threatening 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.
Overnight News:
Chart Trends: Trends in New York are mixed. Support is at 1440, 1410, and 1380 October and resistance is 1540, 1560, and 1590 October. Trends in London are mixed. Support is at 448.00, 443.00, and 436.00 October, with resistance at 490.00, 496.00, and 502.00 October.

COCOA
General Comments: Both markets were a little lower last week on demand concerns. Daily and weekly trends are mixed to down. 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 and the lack of demand is expected to continue.
Overnight News:
Chart Trends: Trends in New York are mixed. Support is at 5240, 5180, and 4860 September, with resistance at 6240, 6300, and 6360 September. Trends in London are mixed. Support is at 3800, 3660, and 3540 September, with resistance at 4650, 4710, and 4770 September.