Softs Report - Friday, June 25

General Comments: New York closed a little lower as the new Brazil crop is making its way to the market, but London was higher as Robusta supplies are light and the market wants a little Coffee. Trends on the daily charts are still sideways in New York but are turning up in London. It looks like demand is moderate for Robusta these days, and the offers are starting to increase as the Arabica harvest is expanding in Brazil. Drier conditions are in the forecast for Brazil Coffee areas this week. Good conditions are reported in northern South America and good conditions reported in Central America. Colombia is having trouble exporting Coffee right now due to protests inside the country. Conditions are reported to be generally good in Asia and Africa.
Overnight News: ICE-certified stocks are higher today at 2.176 million bags. The ICO daily average price is now 138.20 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. ICE said that 230 contracts were posted for delivery today against NY July futures and that total deliveries for the month are now 331 contracts.
Chart Trends: Trends in New York are mixed. Support is at 149.00, 146.00, and 142.00 September, and resistance is at 155.00, 158.00, and 159.00 September. Trends in London are mixed to up with objectives of 1680 and 1730 September. Support is at 1620, 1600, and 1580 September, and resistance is at 1690, 1720, and 1750 September.

General Comments: New York and London were higher and prices are trying to break out higher. There is talk in the market that the recent lows will hold for now. London has been the leader to the downside on ample supplies of White Sugar available to the market and forecasts for improved growing conditions in Brazil. There is plenty of White Sugar available in India for the market and monsoon rains are promoting good conditions for the next crop. Southern growing areas of Brazil are getting some beneficial showers, with Parana and parts of Sao Paulo getting the best rains. Thailand is expecting improved production. Sugar demand is said to be weak. Ethanol demand is returning to the market as more world economies open up after the pandemic.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed to up with objectives of 1750 and 1830 October. Support is at 1690, 1670, and 1640 October, and resistance is at 1760, 1790, and 1810 October. Trends in London are mixed. Support is at 416.00, 413.00, and 410.00 August, and resistance is at 428.00, 435.00, and 440.00 August.

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