Softs Report - Tuesday, Oct, 6

COTTON
General Comments: Cotton closed a little higher and trends are still sideways. 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, but China and Turkey were the best buyers of US Cotton. 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. The supply losses are in the market now. Harvest is underway.
Overnight News: The Delta will get mostly dry conditions until big Rains are seen in the south on Friday and into the weekend, and Southeast will get scattered showers. Temperatures should trend 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 60.39 ct/lb. ICE said that certified stocks are now 17,875 bales, from 16,775 bales yesterday. ICE said that 0 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 6520, 6490, and 8470 December, with resistance of 6660, 6680 and 6720 December.

FCOJ
General Comments: FCOJ was higher on follow through speculative buying. 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 forming in the Caribbean 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 showers. Temperatures will average near normal. Brazil should get dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are up with objectives of 119.00 and 121.00 November. Support is at 111.00, 106.00, and 100.00 November, with resistance at 114.00, 117.00, and 119.00 November.

COFFEE
General Comments: Futures were lower in New York and in London on selling by Brazil producers amid a weakening Real. London had been better supported due to stronger demand ideas and worries about the weather in Vietnam but the country is getting some rain now and the worries have abated. 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. The Brazil harvest is over and producers are selling due to extreme weakness in the Real. Ideas are that production is very strong this year as it is the on year for the trees.
Overnight News: ICE certified stocks are unchanged today at 1.096 million bags. The ICO daily average price is now 105.69 ct/lb. Brazil will get mostly dry conditions this week with above normal temperatures. Vietnam will see light to moderate showers.
Chart Trends: Trends in New York are mixed. Support is at 105.00,102.00, and 101.00 December and resistance is at 110.00, 113.00, and 115.00 December. Trends in London are mixed to down with objectives of 1230 November. Support is at 1260, 1240, and 1230 November, and resistance is at 1330, 1340, and 1370 November.

SUGAR
General Comments: New York closed a little higher and London was mostly a little lower. World petroleum prices are weaker. Brazil mills have been producing more Sugar and less Ethanol due to weak world and domestic petroleum prices. It has been dry lately to affect Sugarcane production. India has a very big crop of Sugarcane this year but the Coronavirus has made exports hard. 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. Demand appears to be about average.
Overnight News: Brazil will get dry conditions. Temperatures should average above normal. USDA said that US Sugarbeets were 46% harvested, from 21% last week, 18% last year, and 30% average.
Chart Trends: Trends in New York are mixed. Support is at 1320, 1310, and 1290 March, and resistance is at 1380, 1410, and 1430 March. Trends in London are mixed. Support is at 368.00, 366.00, and 363.00 December, and resistance is at 379.00, 382.00, and 384.00 December.

COCOA
General Comments: New York and London closed lower and trends are turning down in both markets. The harvest for the next main crop is spreading to much of West Africa and very strong production is expected. 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 and near to above normal temperatures. ICE certified stocks are lower today at 3.640 million bags.
Chart Trends: Trends in New York are down with objectives of 2480, 2430, and 2360 December. Support is at 2440, 2400, and 2370 December, with resistance at 2520, 2540, and 2580 December. Trends in London are down with objectives of 1680, 1670, and 1530 December. Support is at 1710, 1680, and 1660 December, with resistance at 1770, 1810, and 1840 December.