Softs Report - Monday, Dec. 14

Coffee Beans, Coffee Cup, Cup, Coffee, Benefit From

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COFFEE
General Comments: Futures were a little higher last week in New York but closed near unchanged in London. It has been a weather market and the weather has improved. Vietnam has harvested about a quarter of its projected production under mostly dry conditions. Central America is also drier for harvesting. Brazil is getting some rains now to improve flowering after an extended dry season. 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 weather is good in Colombia and Peru.
Overnight News: ICE certified stocks are higher today at 1.323 million bags. The ICO daily average price is now 113.43 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 to up with objectives of 123.00, 127.00, and 130.00 March. Support is at 120.00, 116.00, and 113.00 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 unchanged to a little lower last week. It has been raining in south-central Brazil and the production of cane has been affected. The first half of November crush was down almost 20% from the previous year as cane production has been hurt due to dry weather earlier in the year. 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. 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, especially for Ethanol.
Overnight News: Brazil will get scattered showers. Temperatures should average above normal.
Chart Trends: Trends in New York are mixed. Support is at 1420, 1400, and 1380 March, and resistance is at 1450, 1510, and 1530 March. Trends in London are mixed. Support is at 394.00, 391.00, and 389.00 March, and resistance is at 401.00, 406.00, and 410.00 March.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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