COTTON
General Comments: Futures were much higher again yesterday on ideas of strong demand and questions about supply. The weekly export sales report showed very st4rong sales with China the big buyer. The weekly charts imply that significantly higher prices are coming. Demand or US Cotton remains very strong and that is good news for sellers as the strong demand implies strong prices should continue. 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. Good US production is expected.
Overnight News: The Delta and Southeast will get mostly dry conditions or isolated showers and temperatures trending to above normal. Texas will have isolated to scattered showers and near to above normal temperatures. The USDA average price is now 102.66 ct/lb. ICE said that certified stocks are now 54,442 bales, from 54,442 bales yesterday. ICE said that 0 notices were posted for delivery against October contracts and that total deliveries for the month are now 115 contracts.
Chart Trends: Trends in Cotton are up with no objectives. Support is at 10400, 10200, and 9960 December, with resistance of 10640, 10720, and 10780 December.

Image by Ulrike Leone from Pixabay

FCOJ
General Comments: FCOJ closed lower yesterday and chart trends are turning down as the weather remains generally good for production around the world. Weather concerns, especially for Brazil but also for Florida and Mexico, remained important. A freeze hit Sao Paulo state several weeks ago and reports of significant losses are being heard. It is now warm and dry, but some rain is in the forecast and flowering will be possible in the next couple of weeks. Weather conditions in Florida are rated mostly good for the crops with scattered showers and near normal temperatures. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northeastern Mexico areas were too dry but have gotten good rains in recent weeks, but the rest of northern and western Mexico are rated in good condition. Florida is in the middle of the hurricane season but the storms have missed the state so far and crop conditions are good.
Overnight News: Florida should get dry conditions or isolated showers. Temperatures will average near normal. Brazil should get isolated showers and above normal temperatures. ICE said that 0 notices were posted for delivery against September contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed to down with objectives of 127.00 and 117.00 November. Support is at 131.00, 130.00, and 128.00 November, with resistance at 135.00, 137.00, and 142.00 November.

COFFEE
General Comments: New York and London closed a little higher as tight supplies at origin is still the important fundamental. It remains a bull market on a lack of supplies available from origin. New York has found support from the lack of Coffee available in Brazil after extreme weather events. It has been dry in Brazil and there has been a big freeze there. The temperatures are warm now and there are forecasts for rain over the next week to bring some flowering to the trees. No one is real sure just how much rain will fall in Coffee areas but many say there will be only spotty showers. London is having trouble sourcing Coffee from Vietnam due to a shortage of containers to carry the Coffee out of the country and as the country suffers from a resurgence of the Covid epidemic. Vietnam’s coffee exports in the first nine months of this year are expected to show a 4.2% drop from a year earlier to 1.2 million tons. Prices in New York have been firm as the current Brazil harvest starts to wind down. Scattered showers are now in the forecast for Southeast Asia. Good conditions are reported in northern South America and good conditions reported in Central America. Conditions are reported to be generally good in parts of Africa.
Overnight News: ICE certified stocks are lower today at 2.089 million bags. The ICO daily average price is now 174.20 ct/lb. Brazil will get mostly dry conditions or isolated showers 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 to up with objectives of 203.00 December. Support is at 190.00, 188.00, and 185.00 December, and resistance is at 199.00, 201.00 and 203.00 December. Trends in London are mixed. Support is at 2100, 2060, and 2030 November, and resistance is at 2180, 2210, and 2240 November.

SUGAR
General Comments: New York and London were both higher yesterday and trends are trying to turn up again on the daily charts. Traders expect light deliveries of Sugar against October NY contracts. Ideas are that the supplies available to the cash market are rather slim. The reduced production potential from Brazil is still impacting the market. India is not offering as world prices are well below domestic prices. The ISO has noted that this will be the second year of deficit production for the world, in large part because of the Brazil freeze that cut production. Consumption of Sugar remains on the light side. Fears that Covid is coming back and could reduce economic activity and demand are still around. Thailand is expecting improved production.
Overnight News: Brazil will get mostly dry conditions or isolated showers. Temperatures should average above normal.
Chart Trends: Trends in New York are mixed to up with objectives of 2040, 2090, and 2120 March. Support is at 1990, 1950, and 1930 March, and resistance is at 2050, 2090, and 2120 March. Trends in London are mixed to up with objectives of 516.00 December. Support is at 500.00, 496.00, and 485.00 December, and resistance is at 515.00, 520.00, and 526.00 December.

COCOA
General Comments: New York and London closed higher again yesterday on ideas of short West African production for the coming year. There are increasing concerns that Ghana will have less production this year. Ghana is the worlds second largest producer behind Ivory Coast. 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. Drier weather will be beneficial for the harvest which will be underway soon. Some are forecasting less production in the coming year. Cocoa production in Ivory Coast is expected to drop by up to 11% in the 2021/2022 season that starts on Oct. 1 from the previous year.
Overnight News: Isolated to scattered 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 5.459 million bags.
Chart Trends: Trends in New York are mixed to up with objectives of 2780 December. Support is at 2600, 2540, and 2520 December, with resistance at 2660, 2710, and 2740 December. Trends in London are up with objectives of 1880 December. Support is at 1840, 1820, and 1800 December, with resistance at 1900, 1930, and 1960 December.