Softs Report - Thu., July 16

COTTON
General Comments: Cotton was higher yesterday on reports of flooding rains in Texas A tropical system has entered the state and it has been raining for the last couple of days. It remains hot and dry in parts of the southeast. USDA showed that condition is 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 variable to warm. Trends are turning mixed on the daily and are mixed on the weekly charts.
Overnight News: ICE said that 0 notices were posted for delivery against July futures and that total deliveries for the month are now 627 contracts.
Chart Trends: Trends in Cotton are mixed to down. Support is at 79.30, 77.10, and 75.50 December, with resistance of 84.20, 86.20 and 88.10 December.

DJ U.S. Export Sales: Weekly Sales Totals-Jul 16
For the week ended Jul 9, in thousand running bales. Net changes in commitments are gross sales,
less cancellations, buy-backs and other downward adjustments. Total commitments are total export shipments plus total sales. Source: USDA wk’s net chg total in commitments commitments undlvd sales
this yr next yr this yr last yr this yr next yr
upland cotton 34.4 4.1 11951.0 11794.8 1553.4 2510.7
pima cotton 3.6 2.4 490.9 458.2 61.1 94.5.

FCOJ

General Comments: Futures were lower yesterday and trends are still down on the daily and weekly charts. USDA increased us production to 63.5 million boxes and Florida production to 12.9 million boxes. 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.

Overnight News: ICE said that 0 notices were posted for delivery against July futures and that total deliveries for the month are now 3 contracts.

Chart Trends: Trends in FCOJ are down. Support is at 134.00, 128.00, and 122.00 September, with resistance at 167,00 174.00, and 176.00 September.

COFFEE

General Comments: New York and London were a little higher again yesterday. The harvest delays in both Brazil and Vietnam continue but coffee is more and more available. The next crop is developing well in South America and Asia amid hot and dry conditions. Other world production conditions are generally good. Mostly dry conditions are being reported in Brazil. Mexico is in good condition, as Central America.

Overnight News: The ICO average price is 292.86 ct/lb. ICE NY said that 55 notices were posted for delivery against July futures and that total deliveries for the month are now 529 contracts.

Chart Trends: Trends in New York are mixed. Support is at 300.00, 285.00, and 279.00 September, and resistance is at 372.00, 384.00 and 396.00 September. Trends in London are mixed. Support is at 3680, 3620, and 3560 September, with resistance at 4120, 4180, and 4240 September.

SUGAR

General Comments: New York and London were a little lower yesterday in consolidation trading. Drought in Europe and Brail becomes a major concern. The hot and dr weather is threatening Sugarbeets production. 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 have been good for the harvest.

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 closed higher yesterday. Daily and weekly trends are turning 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 and the lack of demand is expected to continue.

Overnight News: ICE said that 0 notices were posted for delivery against July futures and that total deliveries for the month are now 423 contracts.

Chart Trends: Trends in New York are mixed to up. Support is at 5240, 5180, and 4860 September, with resistance at 6240, 6300, and 6360 September. Trends in London are mixed to up. Support is at 3800, 3660, and 3540 September, with resistance at 4650, 4710, and 4770 September.