Softs Report - Friday, Oct. 9

COTTON
General Comments: Cotton closed higher as another hurricane looks to impact the Delta and Southeast today through this weekend. The weekly export sales report showed just moderate demand last week. Demand should stay weak as long as the Coronavirus is around. Shopping is hard to do and many people are still unemployed. This is true in just about all countries. Another hurricane is forming that could bring some heavy rains and wind to the Southeast areas near the end of the week. Ideas are that most of the Cotton crops in the region escaped any major damage that the previous storms could have brought. This system is likely to do more damage as bolls are open and high winds and big rains could impact yields and quality.
Overnight News: The Delta will get big rains are seen in the south on Friday and in all areas for the weekend, and Southeast will get scattered moderate to heavy showers this weekend. Temperatures should trend to above normal in the Delta and in the Southeast. Texas will have mostly dry conditions. Temperatures will average above normal. The USDA average price is now 61.92 ct/lb. ICE said that certified stocks are now 20,469 bales, from 19,789 bales yesterday. ICE said that 0 notices were post4ee for delivery against October contracts and that total deliveries for the month are now 90 contracts.
Chart Trends: Trends in Cotton are up with objectives of 6860, 6870, and 7180 December. Support is at 6690, 6570, and 8520 December, with resistance of 6840, 6890, and 7060 December.

FCOJ
General Comments: FCOJ was mixed at the close. Futures have no real reason to rally but can’t seem to break too much. Florida has been spared any hurricanes or other serious storms this year in a year that has been very active for tropical storms with a record amount of tropical storms hitting the US. There is a hurricane in the Gulf right now but it does not appear aimed at Florida. The lack of damaging weather usually means lower prices for futures. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and food service demand has been much less as no one is really 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. Import demand to the US should be minimal as US prices remain below those of Europe. Brazil has been too dry and irrigation is being used.
Overnight News: Florida should get isolated to scattered showers. Temperatures will average near normal. Brazil should get scattered showers and near to above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 111.00, 109.00, and 106.00 November, with resistance at 115.00, 119.00, and 121.00 November.

COFFEE
General Comments: Futures were higher in New York and in London on less selling by Brazil producers amid a stronger Real. The Real closed a little higher yesterday after trading lower early. London had been better supported due to stronger demand ideas and worries about the weather in Vietnam but the country is getting much rain now and the worries have abated and price trends are down. The demand from coffee shops and other food service operations is still at very low levels as consumers are still drinking Coffee at home. Reports indicate that consumers at home are consuming blends with more Robusta and less Arabica. The Brazil harvest is over and producers are selling due to the recent extreme weakness in the Real. Ideas are that production is very strong this year as it is the on year for the trees. Central America is also offering right now and offers are increasing. The weather is a little dry in Peru but is mostly good in Colombia and Central America.
Overnight News: ICE certified stocks are higher today at 1.098 million bags. The ICO daily average price is now 107.18 ct/lb. Brazil will get mostly dry conditions today and showers this weekend with above normal temperatures. Vietnam will see light to moderate showers.
Chart Trends: Trends in New York are mixed. Support is at 106.00, 105.00, and 103.00 December, and resistance is at 112.00, 115.00 and 119.00 December. Trends in London are down with no objectives. Support is at 1220, 1210, and 1180 November, and resistance is at 1280, 1320, and 1340 November.

SUGAR
General Comments: New York and London closed higher and made new highs for the move. World petroleum prices are higher. Brazil mills have been producing more Sugar and less Ethanol due to weak world and domestic petroleum prices. About 45% of the crush this year will go to Sugar, from 35% last year. It has been dry lately to affect Sugarcane production and producers are less aggressive sellers. India has a very big crop of Sugarcane this year but the Coronavirus has made exports 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. There are reduced flows from rivers from China to hinder irrigation of the crops. 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 dry conditions today and showers this weekend. Temperatures should average above normal.
Chart Trends: Trends in New York are up with objectives of 1420 and 1460 March. Support is at 1380, 1370, and 1330 March, and resistance is at 1420, 1450, and 1490 March. Trends in London are up with objectives of 387.00 and 396.00 December. Support is at 380.00, 377.00, and 368.00 December, and resistance is at 389.00, 395.00, and 398.00 December.

COCOA
General Comments: New York and London closed a little higher in consolidation trading. Trends are turning sideways to down in both markets. The harvest for the next main crop is spreading to much of West Africa and very strong production is expected. Some concern is noted in Nigeria as rains keep falling and make it hard to sun dry the beans. 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. Ivory Coast is in the middle of the presidential campaign season and some violence s expected.
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 3.629 million bags.
Chart Trends: Trends in New York are down with objectives of 2400, 2360, and 2350 December. Support is at 2420, 2400, and 2330 December, with resistance at 2500, 2520, and 2540 December. Trends in London are down with objectives of 1680, 1670, and 1530 December. Support is at 1680, 1660, and 1620 December, with resistance at 1730, 1770, and 1810 December.