Softs Report - Monday, Sept. 28

COTTON
General Comments: Cotton closed lower for the week and trends are still sideways on the weekly charts. Demand has improved over the last couple of weeks but the weekly export sales report showed just moderate demand last week. There was no major Chinese demand unlike the previous 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. Hurricane Sally moved into the Southeast and brought some heavy rains. Ideas are that most of the Cotton crops in the region escaped any major damage that the storm could have brought. The supply losses are in the market now. However, the Harvest is underway and the tropical season is active.
Overnight News: The Delta will get moderate rain today, then dry conditions and Southeast will get scattered showers. Temperatures should be near to below normal. Texas will have mostly dry conditions. Temperatures will average above normal. The USDA average price is now 60.34 ct/lb. ICE said that certified stocks are now 12,155 bales, from 10,484 bales yesterday. ICE said that 20 notices were post4ee for delivery against October contracts and that total deliveries for the month are now 20 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 6540, 6470, and 6420 December, with resistance of 6620, 6680, and 6720 December.

FCOJ
General Comments: FCOJ was lower once again on the higher US Dollar and the good growing conditions seen in Florida so far this year. 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. 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. Some showers are in the region now to help in Sao Paulo.
Overnight News: Florida should get scattered to isolated showers. Temperatures will average near to above normal. Brazil should get dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are down with objectives of 104.00 November. Support is at 106.00, 100.00, and 97.00 November, with resistance at 113.00, 117.00, and 119.00 November.

COFFEE
General Comments: Futures were higher on Friday, but lower last week in New York and in London. London was the leader to the downside. New York is close to support areas near 109.70 on the weekly charts. London had been better supported due to stronger demand ideas and worries about the weather in Vietnam. The demand from coffee shops and other food service operations is still at very low levels. Consumers are still drinking Coffee at home. Reports indicate that consumers at home are consuming blends with more Robusta and less Arabica. Vietnam was dry during flowering time and is now getting rains. Production ideas are lower, but conditions have stabilized and so has the production outlook. The Brazil harvest is over. Ideas are that production is very strong this year as it is the on year for the trees.
Overnight News: ICE certified stocks are lower today at 1.102 million bags. The ICO daily average price is now 111.12 ct/lb. Brazil will get mostly dry conditions this week with near to above normal temperatures. Vietnam will see light to moderate showers.
Chart Trends: Trends in New York are mixed. Support is at 109.00, 108.00, and 107.00 December, and resistance is at 115.00, 119.00, and 120.00 December. Trends in London are mixed. Support is at 1330, 1310, and 1280 November, and resistance is at 1380, 1400, and 1430 November.

SUGAR
General Comments: New York and London were higher for the week as world petroleum prices were mostly steady at lower levels. Brazil mills have been producing more Sugar and less Ethanol due to weak world and domestic petroleum prices, but that might be changing as petroleum prices start to firm up. India is thought to have a very big crop of Sugarcane this year but getting it into Sugar and into export position has become extremely difficult due to Coronavirus lockdowns. 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.
Overnight News: Brazil will get dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed to up with objectives of 1380 and 1420 March. Support is at 1330, 1310, and 1300 March, and resistance is at 1360, 1380, and 1410 March. Trends in London are mixed to up with objectives of 381.00 December. Support is at 370.00, 366.00, and 360.00 December, and resistance is at 382.00, 384.00, and 389.00 December.

COCOA
General Comments: New York and London closed higher. The current crop features strong production but there are worries about the next crop. The harvest for the next main crop just started in southeast Nigeria and will spread to the rest of West Africa in the coming weeks. 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 still trying to open its markets again but the Coronavirus is still around and is in fact coming back and consumers are reluctant to buy. Ideas are that Southeast Asia also has good crops.
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 and near to above normal temperatures. ICE certified stocks are higher today at 3.667 million bags.
Chart Trends: Trends in New York are mixed to down with objectives of 2480, 2430, and 2360 December. Support is at 2530, 2500, and 2470 December, with resistance at 2610, 2630, and 2660 December. Trends in London are mixed. Support is at 1830, 1790, and 1760 December, with resistance at 1930, 1970, and 2000 December.