COTTON
General Comments: Cotton closed higher and trends are up. USDA made a big cut in ending stocks projections in its WASDE updates yesterday. Production was cut back by a lot and export demand increased. Traders are optimistic about demand. There is a lot of confusion about the rollout of the Coronavirus vaccine and its effects on the economy. For now the vaccine is restricted to those most at risk and the general population might not get shot for quite a while. Meanwhile, the economy is starting to go down due to a lack of stimulus funding from the federal government. Harvest is ongoing amid drier weather conditions in West Texas and the Delta and Southeast. Reports indicate that some Cotton could have been damaged in Georgia and the Carolinas and into eastern Virginia due to the excessive winds and rains caused by the hurricanes. Export demand has held strong despite stay at home orders and weaker economies around the world. Traders now hope for even more demand later as the vaccines are given out and the world economies start to recover.
Overnight News: The Delta and Southeast will get mostly dry conditions except for some showers on Friday in the Delta. Temperatures should average near to below normal in the Delta and in the Southeast. Texas will have mostly dry conditions or isolated showers and above normal temperatures. The USDA average price is now 68.69 ct/lb. ICE said that certified stocks are now 86,544 bales, from 86,544 bales yesterday. ICE said that 0 notices were posted for delivery against December contracts and that total deliveries for the month are now 354 contracts.
Chart Trends: Trends in Cotton are mixed to up with objectives of 7440, 7490, and 7740 March. Support is at 7250, 7200, and 7140 March, with resistance of 7450, 7430 and 7470 March.

FCOJ
General Comments: FCOJ was lower in response to the USDA reports that showed more production in Florida than expected by the trade. Production was estimated at 56 million boxes. The fundamentals remain mixed to negative. Florida has been spared any hurricanes or other serious storms this year. The Coronavirus is still promoting consumption of FCOJ at home. Restaurant and food service demand has been much less as no one is dining out. The weather in Florida is good with frequent showers to promote good tree health and fruit formation. Brazil has been too dry, but showers are falling in Brazil now and these need to continue to ensure good tree health. However, it could turn warm and dry again this week. Mexican crop conditions are called good with rains.
Overnight News: Florida should get isolated showers or dry conditions. Temperatures will average below normal. Brazil should get scattered showers and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 120.00, 118.00, and 113.00 January, with resistance at 124.00, 127.00, and 129.00 January.

Image Source: Pixabay

COFFEE
General Comments: Futures were higher despite good world growing conditions and strong Brazil exports. It has been a weather market and the weather has improved in Brazil and in Vietnam. Central American weather is also improved as the dry season is getting started. Brazil is getting some rains now to improve flowering after an extended dry season. Vietnam is also drier after a series of tropical cyclones hit the country. The harvest is now about 25% complete. 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. Ideas are that production is very strong this year as it is the on year for the trees. Central America is offering at high differentials and with limited volumes. The weather is good in Colombia and Peru.
Overnight News: ICE certified stocks are lower today at 1.313 million bags. The ICO daily average price is now 113.02 ct/lb. Brazil will get scattered showers with near to above normal temperatures. Central America will get scattered showers after a hurricane earlier this week. Vietnam will see some big rains. ICE said that 0 contracts were tendered for delivery against December futures and that total deliveries for the month are now 1,589 contracts.
Chart Trends: Trends in New York are mixed. Support is at 116.00, 113.00, and 110.00 March, and resistance is at 125.00, 128.00 and 129.00 March. Trends in London are mixed. Support is at 1310, 1290, and 1280 January, and resistance is at 1340, 1370, and 1380 January.

SUGAR
General Comments: New York and London closed higher and trends are mostly up in both markets. Northern Brazil has been dry and production of cane in northern areas has been affected. It has been raining in south-central Brazil, but these areas will turn warm and dry this week as the rains move farther to the north. The rains that have fallen have at least temporarily improved conditions. Brazil released its crush data yesterday. It showed that the first half November crush was down almost 20% from the previous period due to less cane availability. Sugar production was stronger than ethanol production due to price spreads. Brazil mills have been producing more Sugar and less Ethanol due to weak world and domestic petroleum prices. India has a very big crop of Sugarcane this year. The Indian government has not announced the subsidy for exporters of Sugar so no exports are coming out of India yet. Sources told wire services that any subsidy will need to be significant to get export sales on the books. Thailand might have less this year due to reduced planted area and erratic rains during the monsoon season. It is dry again now. The EU is having problems with its Sugarbeets crop due to weather and disease. Coronavirus has returned to the world and has caused some demand concerns.
Overnight News: Brazil will get scattered showers. Temperatures should average above normal. ICE said that 326 delivery notices were posted for January Sugar 16 contracts.
Chart Trends: Trends in New York are mixed to up with objectives of 1510 and 1570 March. Support is at 1450, 1420, and 1400 March, and resistance is at 1510, 1530, and 1560 March. Trends in London are mixed to up with objectives of 414.00 and 439.00 March. Support is at 398.00, 394.00, and 391.00 March, and resistance is at 410.00, 414.00, and 419.00 March.