Softs Report - Tue., June 24

COTTON
General Comments: Cotton was lower yesterday on long liquidation. USDA showed that squaring and emergence were running at near or above normal last week and the condition showed moves from poor and good to fair. USDA showed that condition is still well behind year ago levels, with some areas showing improvement and other areas showing deterioration. The WASDE report showed reduced beginning and ending stocks with the rest of the supply and demand data left unchanged. Ending stocks are now estimated at 3.70 million bales. Forecasts and reports of scattered showers in Cotton areas continue for Texas, the Delts, and the Southeast. Temperatures will be variable. Trends are mixed on the daily and weekly charts.
Overnight News: ICE said that 527 contracts were posted for delivery against July futures and that total deliveries for the month are now 527 contracts.
Chart Trends: Trends in Cotton are mixed to up. Support is at 75.10, 72.10, and 71.00 July, with resistance of 78.30, 79.10 and 80.00 July.

FCOJ
General Comments: Futures were lower and trends are turning down on the daily and weekly charts. 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 142.00, 136.00, and 130.00 July, with resistance at 178,00 184.00, and 190.00 July.

COFFEE
General Comments: New York and London were higher yesterday after seeing the First Notice Day deliveries and harvest delays in both Brazil and Vietnam. The next crop is developing well in South America and Asia amid good conditions, but the rain seen lately have pushed the harvest progress behind year ago levels. World production conditions are generally good. Mostly dry conditions are being reported now in Brazil. Mexico is in good condition, as Central America. Vietnam has had some showers but producers are not selling and are waiting for a move higher in prices.
Overnight News: The ICO average price is 258.73 ct/lb. ICE NY said that 0 notices were posted for delivery against July contracts today and that total deliveries for the month are now 3 contracts.
Chart Trends: Trends in New York are up. Support is at 268.00, 260.00, and 256.00 September, and resistance is at 285.00, 294.00 and 298.00 September. Trends in London are mixed. Support is at 3470, 3430, and 3330 September, with resistance at 3610, 3680, and 3730 September.

SUGAR
General Comments: Both markets were higher again yesterday. The Iran war has been paused as both sides signing a memorandum of understanding and continuing negotiations in Geneva. Trends are mixed or down 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 to down. Support is at 1370, 1340, and 1310 October and resistance is 1410, 1450, and 1480 October. Trends in London are mixed. Support is at 430.00, 424.00, and 417.00 October, with resistance at 445.00, 448.00, and 454.00 October.

COCOA
General Comments: New York was higher while London also closed higher as the Markets build to new recent highs. Daily trends are turning up now. 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 235 notices were posted for delivery against July futures and that total deliveries for the month are now 2235 contracts.
Chart Trends: Trends in New York are up. Support is at 4400, 4190, and 3960 September, with resistance at 4850, 5190, and 5360 September. Trends in London are up. Support is at 3260, 3140, and 3090 September, with resistance at 3710, 3810, and 4080 September.