Softs Report - Tuesday, August 18

COTTON
General Comments: Cotton was higher yesterday on speculative buying after the USDA WASDE reports and stressful weather conditions. USDA trimmed production to 13.61 million bales from 13.7 million before. Demand was left unchanged at 13.90 million bales and ending stocks were estimated at 3.0 million bales from 3.1 million before. USDA showed that conditions are still well behind year ago levels with the crop opening bolls. Progress is slipping behind average. Forecasts and reports of scattered to isolated showers in Cotton areas continue for the Delts, and the Southeast. Temperatures will be warm to hot in all areas. 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 86.20, 88.10 and 89.30 December.

FCOJ
General Comments: Futures were lower yesterday and trends are turning down on the daily charts. The weekly charts are mixed. It is still dry in Florida but showers are showing up. 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 southern Brazil but many areas are drying out seasonally.
Chart Trends: Trends in FCOJ are mixed to down. Support is at 135.00, 130.00, and 124.00 September, with resistance at 154,00 159.00, and 167.00 September.

COFFEE
General Comments: New York was higher and London was higher yesterday and trends are still mixed on the daily charts but are turning down in London. Brazil coffee is more and more available as farmers are rewarding the rally with sales. Lower quality coffee is available but higher quality is hard to find due to weather problems. 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 still below 300,000 bags and are well below last year.
Overnight News: The ICO average price is 285.15 c19lb.
Chart Trends: Trends in New York are mixed to up. Support is at 341.00, 329.00, and 318.00 September, and resistance is at 357.00, 364.00 and 370.00 September. Trends in London are mixed. Support is at 3560, 3490, and 3420 September, with resistance at 3770, 3930, and 4130 September.

SUGAR
General Comments: New York and London were higher yesterday and trends are mixed on the daily charts. 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. Indian production is also less after hot and dry conditions and production in the rest of Asia could be hurt by El Nino weather.
Chart Trends: Trends in New York are mixed. Support is at 1630, 1600, and 1570 October and resistance is 1690, 1720, and 1750 October. Trends in London are mixed to down. Support is at 509.00, 499.00, and 480.00 October, with resistance at 524.00, 530.00, and 536.00 October.

COCOA
General Comments: New York and London were higher yesterday in reports that farmers are waiting so see the crop sizes before selling. Daily chart trends are mixed 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.
Chart Trends: Trends in New York are mixed. Support is at 5360, 3760, and 3660 September, with resistance at 6220, 6480, and 6600 September. Trends in London are mixed. Support is at 4000, 3660, and 3540 September, with resistance at 4570, 4820, and 4940 September.