Softs Report - Tuesday, September 1

COTTON
General Comments: Cotton closed a little higher on follow through buying. Futures are still reacting in part to the adverse weather in western Texas. Demand has improved over the last couple of weeks but remains at depressed levels. The charts show potential for futures to trade close to 68.00 in the next couple of weeks. It will be hard to get there unless demand supports. The supply losses are in the market now. However, the Harvest is still a ways down the road and the tropical season is active. There will be more chances to inflict more damage on the crops to help try to rally prices.
Overnight News: The Delta will get some scattered showers and Southeast will get scattered showers. Temperatures should be near to above normal. Texas will have isolated showers this weekend. Temperatures will average near to above normal. The USDA average price is now 59.05 ct/lb. ICE said that certified stocks are now 6,465 bales, from 6,465 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 6460, 6400, and 6330 December, with resistance of 6600, 6640 and 6680 December.

FCOJ
General Comments: FCOJ was lower to start the new week. 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 showers. Temperatures will average above normal. Brazil should get dry conditions and near normal temperatures.
Chart Trends: Trends in FCOJ are mixed to down with no objectives. Support is at 115.00, 114.00, and 110.00 November, with resistance at 119.00, 122.00, and 126.00 November.

COFFEE
General Comments: Futures were higher in New York and closed for a holiday in London. London has been the leader on the rally as demand for Robusta has improved with people staying at home. Chart trends remain up. Vietnam was dry during flowering time and is dry again. Production ideas are lower. Demand overall remains down. The demand from coffee shops and other food service operations is still at very low levels. Consumers are still drinking Coffee at home and the return of the Coronavirus outbreak will keep things that way. Reports indicate that consumers at home are consuming blends with more Robusta and less Arabica. Europe is emerging from lock downs. The Brazil harvest is almost over but shipping has become difficult due to the widespread outbreak of the Coronavirus there. Even so, the ports are operating normally. Ideas are that production will be very strong this year as it is the on year for the trees. The strong production ideas are coming despite hot and dry weather seen in the country at flowering time.
Overnight News: ICE certified stocks are lower today at 1.233 million bags. The ICO daily average price is now 121.31 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Vietnam will see light to moderate showers. ICE said that 0 notices were posted for delivery against September futures and that total deliveries for the month are now 444 contracts.
Chart Trends: Trends in New York are mixed. Support is at 123.00, 118.00, and 116.00 December, and resistance is at 127.00, 129.00 and 132.00 December. Trends in London are mixed to up with objectives of 1450 and 1490 November. Support is at 1400, 1380, and 1370 November, and resistance is at 1470, 1490, and 1510 November.

SUGAR
General Comments: New York was a little higher as London was closed. Chart trends have turned down in London but have turned sideways in New York. CONAB noted in its most recent report that Brazilian mills are producing more Sugar and less Ethanol this year due to reduced Ethanol demand. Ideas are that there is plenty of Sugar for the world market. 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 lock downs. 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. Support is at 1250, 1230, and 1180 October, and resistance is at 1300, 1330, and 1360 October. Trends in London are down with objectives of 342.00 October. Support is at 350.00, 347.00, and 345.00 October, and resistance is at 365.00, 368.00, and 371.00 October.

COCOA
General Comments: New York closed higher and London was closed for a holiday. The charts show that both markets turned trends up last week and New York made new highs for the move again yesterday. The current crop features strong production but there are worries about the next crop. Nigerian traders told the wire services that the Nigerian harvest will be delayed by at least a month due to dry weather keeping the pods and beans small and keeping the pods from developing normally. 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 consumers are reluctant to buy. Ideas are that Southeast Asia also has good crops.
Overnight News: Isolated to 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 a little higher today at 3.786 million bags. ICE said that 0 notices were posted for delivery today against September futures and that total deliveries for the month are now 853 contracts.
Chart Trends: Trends in New York are up with objectives of 2690, 2750, and 2900 December. Support is at 2530, 2500, and 2470 December, with resistance at 2670, 2720, and 2800 December. Trends in London are up with objectives of 1700 and 1850 December. Support is at 1730, 1700, and 1670 December, with resistance at 1770, 1800, and 1830 December.