COTTON
General Comments: Futures were lower yesterday despite a strong weekly export sales report as concern surfaced about Covid and the Delta Variant that could disrupt economic activity here and around the world. The US Dollar was higher to hurt futures of many commodities including Cotton. Showers are falling in Texas and throughout the major growing areas of the south. The Southeast is turned drier now as Fred has passed through the region. Ideas of strong demand continue but the weekly reports have shown more like an average demand. The demand is expected to be strong from Asian countries as world economies recover from Covid lockdowns. Analysts say the demand is still very strong and likely to hold at high levels for the future. However, the expansion of the Delta variant has given pause to the better demand ideas due to fears of economies here and around the world starting to partially lock down again. Production ideas are being impacted in just about all areas due to the weather extremes. It has been very hot in parts of Texas and the Delta and Southeast have had drenching rains at various times in the last couple of months. Overall growing conditions are much better now in just about all areas.
Overnight News: The Delta will get isolated showers and above normal temperatures and Southeast will get isolated to scattered showers and near to above normal temperatures. Texas will have isolated showers and near to above normal temperatures. The USDA average price is now 89.58 ct/lb. ICE said that certified stocks are now 79,340 bales, from 80,330 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 9230, 9180, and 9100 December, with resistance of 9470, 9600 and 9670 December.

Image by zanna-76 from Pixabay

FCOJ
General Comments: FCOJ closed a little higher yesterday in range trading. The market is waiting for some news to trigger a move in one direction or the other. Freezing temperatures have been reported in Sao Paulo in the last couple of weeks but temperatures are now at or above seasonal averages. Weather conditions in Florida are rated mostly good for the crops. A new system could hit the state in the next couple of days and be more threatening than Fred, but the market appears unconcerned. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northeastern Mexico areas are too dry, but the rest of northern and western Mexico are rated in good condition.
Overnight News: Florida should get scattered showers with big rains this weekend. Temperatures will average near to above normal. Brazil should get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 131.00, 128.00, and 126.00 September, with resistance at 135.00, 139.00, and 142.00 September.

COFFEE
General Comments: New York and London closed lower yesterday on fund selling tied to weakness in other ag and financial markets. The US Dollar was firmer and fears of the return of Covid with the spread of the Delta variant were noted. Prices have stayed firm as the current Brazil harvest starts to wind down. Brazil temperatures are warmer with near to above normal readings expected. It is flowering time for the next crop and the flowers were frozen and will drop off the trees. It is also harvest time and the crop is now more than 89% harvested. The current outlook calls for 10 days of dry weather which will not support the flowering but will keep the harvest active. Improved showers are now in the forecast for Southeast Asia. Little demand is showing for Vietnamese Coffee as containers to ship the Coffee are hard to find. Good conditions are reported in northern South America and good conditions reported in Central America. Colombia is having trouble exporting Coffee due to protests inside the country. Conditions are reported to be generally good in parts of Africa, but Ivory Coast and Ghana have been a little dry.
Overnight News: ICE certified stocks are lower today at 2.157 million bags. The ICO daily average price is now 157.51 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers.
Chart Trends: Trends in New York are mixed. Support is at 173.00, 171.00, and 168.00 September, and resistance is at 183.00, 187.00 and 190.00 September. Trends in London are mixed. Support is at 1820, 1800, and 1770 September, and resistance is at 1880, 1920, and 1950 September.

SUGAR
General Comments: New York and London were lower despite reduced production estimates from Conab in Brazil. Traders were reacting more to the stronger US Dollar and lower Crude Oil futures. Fears that the Covid is returning and could reduce economic activity and demand held sway. The market is still realizing a short supply situation. The freeze and drought damage is there as industry sources have said to expect a short season for processing. London has firmed a bit lately with the problems in Brazil and trends in this market are up. There is little White Sugar left in India for the export market but monsoon rains are promoting good conditions for the next crop. Thailand is expecting improved production. Ethanol demand is returning to the market as more world economies open up after the pandemic, but renewed Ethanol demand is now in doubt with weaker Crude Oil futures and covid pandemic fears as the Delta variant spreads.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed. Support is at 1960, 1930, and 1890 October, and resistance is at 2000, 2040, and 2060 October. Trends in London are mixed. Support is at 491.00, 482.00, and 479.00 October, and resistance is at 500.00, 510.00, and 516.00 October.

COCOA
General Comments: New York was lower and London closed mixed yesterday with currency considerations the major factor as the US Dollar rallied. Ivory Coast has stopped selling for the next crop on fears of less supplies. The grind data was released recently and showed a strong recovery from the Covid times. World economies are starting to reopen after Covid and the open economies are giving demand the boost. The weather has had below normal rains in West Africa and crop conditions are rated good for now but there is concern about the lack of rain.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be above 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 5.576 million bags. ICE said that 0 contracts were posted for delivery against September futures and that total deliveries for the month are now 569 contracts.
Chart Trends: Trends in New York are up with no objectives. Support is at 2530, 2500, and 2450 December, with resistance at 2670, 2700, and 2730 December. Trends in London are up with no objectives. Support is at 1780, 1750, and 1720 December, with resistance at 1830, 1860, and 1890 December.