Softs Report - Tuesday, Feb. 17

COTTON
General Comments: Cotton was higher last week in choppy trading and trends are mixed. The weekly export sales report was positive for prices. However, there are still demand concerns moving forward on weak world economy ideas led by the US weakened economy and demands in world forums. Tariffs on other nations that change all the time were creating an atmosphere not conducive for new demand for US products. USDA showed no important changes in its WASDE reports released on Tuesday.
Chart Trends: Trends in Cotton are mixed. Support is at 60.60, 60.00, and 59.40 March, with resistance of 62.60, 63.10 and 63.70 March.

FCOJ
General Comments: Futures were higher last week and futures recovered much of the losses of the previous week as the Florida harvest is active and the weather remains benign for harvest progress as conditions are mostly dry. Weather for the next crop was very cold in January and into early February and some damage to trees and fruit was expected. The frozen fruit is often harvested and sent to processors for juice and this fact helped to turn trends down on the weekly charts last week. Chart trends are mixed on the daily charts. The cold and dry Winter weather has created more ideas of some crop losses. Traders are worried about demand even with overall low prices. The weather is considered good for production in Brazil and Mexico. Scattered showers are reported in Brazil.
Chart Trends: Trends in FCOJ are mixed to up. Support is at 163.00, 151.00, and 146.00 March, with resistance at 189.00, 195.00, and 211.00 Marzo.

COFFEE
General Comments: Both markets closed higher last week in sideways trading as good weather for growing and harvesting continues to be seen in Brazil and Vietnam. Production ideas are high in both countries. The trends are mixed in New York and mixed in London on the daily charts. There are still reports of harvest sales from Vietnam as the new harvest is active. There are reports of very good conditions in Brazil and a large crop is forecast. Scattered showers are being reported now to improve tree condition in Brazil. Mexico is in good condition, as is Central America. Vietnam has scattered showers lately and conditions there are called good. Vietnamese producers are selling new crop Coffee.
Overnight News: The ICO average price is 274.98 ct/lb.
Chart Trends: Trends in New York are mixed to down. Support is at 292.00, 288.00, and 282.00 March, and resistance is at 331.00, 338.00 and 342.00 March. Trends in London are mixed to down. Support is at 3680, 3620, and 3560 March, with resistance at 4010, 4100, and 4160.

SUGAR
General Comments: New York and London were lower last week and trends are down on the daily and weekly charts. There are good supplies for the market from good growing conditions for cane and beets around the world. The prospect of a big global surplus in the 2025/26 season was keeping the market on the defensive with a rise in production in India and Thailand set to increase supplies especially for White Sugar while global consumption is expected to remain steady.
Chart Trends: Trends in New York are down. Support is at 1340, 1310, and 1280 May and resistance is at 1370, 1400, and 1420 May. Trends in London are down. Support is at 394.00, 391.00, and 388.00 May, with resistance at 407.00, 409.00, and 413.00 May.

COCOA
General Comments: New York and London closed lower on speculative selling last weEk. Short term trends are turning down in both markets. 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. Weak demand has led to a build-up on unsold supplies in both Ivory Coast and Ghana, while the prospect of another global surplus in 2026/27 are real. Cocoa demand has fallen sharply after prices nearly tripled in 2024, prompting chocolate makers to reformulate ingredients and shrink the size of their bars.
Chart Trends: Trends in New York are mixed to down. Support is at 3480, 3360, and 3240 March, with resistance at 4490, 4970, and 5180 March. Trends in London are mixed to down. Support is at 2540, 2480, and 2420 March, with resistance at 3660, 3780, and 4030 March.