Softs Report - Wed., Aug. 5

COTTON
General Comments: Cotton was lower along with weaker vt\rude oil futures. USDA showed that conditions are still well behind year ago levels and showed deterioration last week with the crop in the squaring and setting bolls phase. Progress is about average, with bolls being set and squaring proceeding at a normal pace. Forecasts and reports of scattered to isolated showers in Cotton areas continue for the Delts, and the Southeast. Temperatures will be warm to hot. 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 82.90, 84.20 and 86.20 December.

FCOJ
General Comments: Futures were little changed yesterday and trends are ip on the daily charts but could be topping out for the short term. 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 rp. Support is at 144.00, 140.00, and 135.00 September, with resistance at 167,00 174.00, and 176.00 September.

COFFEE
General Comments: New York and London were higher yesterday and trends are mixed on the daily charts. The harvest delays in Brazil continue but coffee is more and more available and the increased offer was responsible for the selling. 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. Cooxupe showed increased sales in Brazil last week at 58.3% of the crop. Deliverable stocks are below 300,000 bags and are well below last year.
Overnight News: The ICO average price is 282.18 ct/lb.
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 higher again yesterday. 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. 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 has been good for the harvest.
Chart Trends: Trends in New York are mixed. Support is at 1440, 1410, and 1380 October and resistance is 1590, 1620, and 1650 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: New York was slightly higher and London was lower yesterday in consolidation trading. Daily chart trends are mixed but turning up 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. Ghana’s cocoa production is expected to fall by at Ghana’s cocoa production is expected to fall by at least 16% in the 2026 to 2027 season, market regulator COCOBOD said, citing weather effects, the crop’s natural fruit-bearing cycle and disease, The weather is also hurting crops in Ivory Coast.
Chart Trends: Trends in New York are mixed to up. Support is at 4860, 4670, and 4510 September, with resistance at 6240, 6300, and 6360 September. Trends in London are mixed. Support is at 3800, 3660, and 3540 September, with resistance at 4650, 4710, and 4770 September.