Softs Report - Tue., July 14

COTTON
General Comments: Cotton was a little lower yesterday It remains hot and dry in Texas and parts of the southeast USDA showed stronger production and unchanged demand for an increase in ending stocks estimates to 45.1 million bales. World supplies were also higher. There are ideas of warm and dry weather keeping the condition low for the crops, but the weather could moderate next week. 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 Texas, the Delts, and the Southeast. Temperatures will be variable to warm. Trends are mixed on the daily and are up on the weekly charts.
Overnight News: ICE said that 9 notices were posted for delivery against July futures and that total deliveries for the month are now 617 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 80.90, 79.30, and 77.10 December, with resistance of 82.00, 84.20 and 86.20 December.

FCOJ
General Comments: Futures were a little lower yesterday on follow through selling and trends are still down on the daily and weekly charts. USDA increased us production to 63.a5 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 moth are now 3 contracts.
Chart Trends: Trends in FCOJ are mixed to 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 lower yrsterday. The harvest delays in both Brazil and Vietnam continue. 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 293.94 ct/lb. ICE NY said that 111 notices were posted for delivery against July contracts today and that total deliveries for the month are now 387 contracts.
Chart Trends: Trends in New York are mixed. Support is at 300.00, 285.00, and 279.00 September, and resistance is at 350.00, 372.00 and 384.00 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 lower last week as drought in Europe and Brail becomes an increasing 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 up 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.
Overnight News:
Chart Trends: Trends in New York are up. 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 lower 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 NY said that 6 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 up. Support is at 5240, 5180, and 4860 September, with resistance at 6240, 6300, and 6360 September. Trends in London are up. Support is at 3800, 3660, and 3540 September, with resistance at 4650, 4710, and 4770 September.