Softs Report - Friday, Oct. 23

COTTON

General Comments: Cotton closed higher on the relatively strong weekly USDA export sales report. USDA reported good sales and also good shipments last week. Chart trends are still mostly up on the daily and weekly charts. The US crop has been damaged. Hurricane Delta moved through the Delta and Southeast and did some damage to Cotton. Open bolls were reported in both regions and Cotton fiber was discolored or else blown out of the bolls due to the rain and winds. The discolored Cotton is getting a chance to recover now as it has turned dry and the fiber can be naturally bleached by the Sun. Demand should stay weak as long as the Coronavirus is around. Shopping is hard to do and many people are still unemployed.

Overnight News: The Delta and Southeast will get scattered showers. Temperatures should average near to above normal in the Delta and in the Southeast. Texas will have mostly dry conditions. Temperatures will average near to above normal. The USDA average price is now 66.76 ct/lb. ICE said that certified stocks are now 33,477 bales, from 31,818 bales yesterday.

Chart Trends: Trends in Cotton are mixed up with no objectives. Support is at 7000, 6930, and 6840 December, with a resistance of 7220, 7250, and 7280 December.

FCOJ

General Comments: FCOJ was mostly higher, but November closed a little lower as traders are rolling forward on positions. Charts show that trends are still down. Florida has been spared any hurricanes or other serious storms this year in a year that has been very active for tropical storms. Forecasts say that there is nothing on the horizon to damage crops, but a system is forming that could bring rain to the state. The Coronavirus is still promoting the consumption of FCOJ at home. Restaurant and foodservice demand has been much less as no one is real9y dining out. Florida production prospects for the new crop were hurt by an extended flowering period, but the weather is good now with frequent showers to promote good tree health and fruit formation. Brazil has been too dry and irrigation is being used. Showers are falling in Brazil now. Mexican crop conditions are called good to very good with ample rains.

Overnight News: Florida should get isolated showers. Temperatures will average near to above normal. Brazil should get scattered showers and near to above normal temperatures.

Chart Trends: Trends in FCOJ are down with objectives of 109.00 November. Support is at 109.00, 106.00, and 103.00 November, with resistance at 114.00, 115.00, and 119.00 November.

COFFEE

General Comments: Futures were higher in New York and in London yesterday. London had been better supported due to stronger demand ideas and worries about the weather in Vietnam and the country is getting too much rain now with flooding reported in the Central Highlands. Drier weather is forecast after this week and will be welcomed. The demand from coffee shops and other foodservice operations is still at very low levels. Reports indicate that consumers are at home and are consuming blends with more Robusta and less Arabica. The Brazil harvest is over and producers are selling and are also delivering to the ICE as certified stocks. Ideas are that production is very strong this year. Central America is also offering right now and offers are increasing. The weather is good in Colombia and Peru. Certified stocks are increasing now due to new arrivals of Brazilian and Central and South American coffees.

Overnight News: ICE certified stocks are higher today at 1.131 million bags. The ICO daily average price is now 105.22 ct/lb. Brazil will get scattered showers with above normal temperatures. Vietnam will see light to moderate showers.

Chart Trends: Trends in New York are mixed. Support is at 103.00, 100.00, and 98.00 December, and resistance is at 107.00, 109.00, and 111.00 December. Trends in London are mixed. Support is at 1240, 1220, and 1210 November, and resistance is at 1280, 1320, and 1340 November.

SUGAR

General Comments: New York and London were higher and made new highs for the move. Rains are falling in Sugarcane areas of Brazil and production prospects for the next crop are good. India has a very big crop of Sugarcane this year but exports are hard. The Indian government has not yet announced the subsidy for exporters of Sugar so no one knows how much to charge yet. Thailand might have less this year due to reduced planted area and erratic rains during the monsoon season. Rains are moving through the country now from Vietnam and the Pacific. The EU is having problems with its Sugarbeets crop due to weather and disease. Demand appears to be about average.

Overnight News: Brazil will get scattered showers. Temperatures should average above normal.

Chart Trends: Trends in New York are up with objectives of 1510 and 1580 March. Support is at 1460, 1430, and 1410 March, and resistance is at 1520, 1550, and 1580 March. Trends in London are mixed. Support is at 396.00, 388.00, and 385.00 December, and resistance is at 405.00, 409.00, and 412.00 December.

COCOA

General Comments: New York and London were higher as traders keep an eye out for potential unrest in Ivory Coast during the current presidential election season. Trends are sideways in both markets. The harvest for the next main crop is spreading through much of West Africa and very strong production is expected. Conditions are generally good for picking and drying the Cocoa. There are a lot of demand worries as the Coronavirus is not going away and could be making a comeback in the US. Europe is also seeing a return of the pandemic.

Overnight News: Scattered showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get mostly dry conditions today and showers this weekend and near to above normal temperatures. ICE certified stocks are lower today at 3.511 million bags.

Chart Trends: Trends in New York are mixed. Support is at 2420, 2370, and 2330 December, with resistance at 2490, 2520, and 2530 December. Trends in London are mixed. Support is at 1650, 1620, and 1590 December, with resistance at 1700, 1730, and 1770 December.