Image by Ulrike Leone from Pixabay

COTTON
General Comments: Cotton was lower and still remains inside the trading range created since the beginning of November. Futures are still showing bad demand fundamentals that have kept prices from rallying through resistance areas. The weekly export sales report showed moderate sales. Overall, the demand for US Cotton has not been strong although better demand has developed over the last couple of weeks. Some ideas that demand could soon increase as China could start to open its economy in the next couple of months as Covid outbreaks should start to weaken as people get vaccinated or immune. Covid is now widespread in China so the beneficial economic effects of the opening are being delayed but these effects should start to be felt as the people there achieve immunity over the next few weeks.
Overnight News: The Delta will get mostly dry conditions and near to below normal temperatures. The Southeast will see isolated to scattered showers and near normal temperatures. Texas will have mostly dry conditions and near to below below normal temperatures. The USDA average price is now 83.25 ct/lb. ICE said that certified stocks are now 8,900 bales, from 8,900 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 84.50, 83.20, and 82.00 March, with resistance of 87.50, 88.90 and 89.90 March.

FCOJ
General Comments: FCOJ was higher on Friday and sharply higher for the week. Futures closed at new highs for the move. Chart trends are up again on the daily and weekly charts. Demand should start to improve with the holidays now over and cold air being reported over much of the country. Historically low estimates of production due in part to the hurricanes and in part to the greening disease has hurt production remain in place. The weather remains generally good for production around the world for the next crop but not for production areas in Florida that have been impacted in a big way by the two storms. Brazil has some rain and conditions are rated good. Mostly dry conditions are in the forecast for the coming days. The FCOJ Movement an Pack report showed that inventories are now 38.6% less than the same time last year.
Overnight News: Florida should get scattered showers. Temperatures will average above normal. Brazil should get scattered showers and near normal temperatures.
Chart Trends: Trends in FCOJ are up with no objectives. Support is at 230.00, 220.00, and 214.00 March, with resistance at 247.00, 250.00, and 253.00 March.

COFFEE
General Comments: New York and London closed lower on Friday on what appeared tpo be long liquidation. Futures closed higher for the week in New York but lower in London. New York charts still indicate that moves above 200.00 and perhaps well above that level are possible in coming weeks. Ideas of big production for Brazil continue due primarily to rains falling in Coffee production areas now and as offers stayed strong from Brazil and increasingly from Vietnam. There are ideas that production potential for Brazil had been overrated and reports of too much rain in Vietnam affected the harvest progress. The weather in Brazil is currently very good for production potential but worse conditions seen earlier in the growing cycle hurt the overall production prospects as did bad weather last year. Vietnam exported 160,000 tons of Coffee in January, down 30.9% from last year.
Overnight News: ICE certified stocks are unchanged today at 0.872 million bags. The ICO daily average price is now 172.50 ct/lb. Brazil will get isolated showers in northern areas 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 204.00 and 237.00 March. Support is at 170.00, 167.00, and 165.00 March, and resistance is at 184.00, 186.00 and 192.00 March. Trends in London are mixed. Support is at 20\00, 1950, and 1910 March, and resistance is at 2060, 2110, and 2120 March.

SUGAR
General Comments: New York and London closed lower on Friday and for the week in both markets. The charts show that short term down trends are developing. Ideas of better supplies coming might keep futures prices in check even with a rather tight nearby scenario. Good production prospects are seen for crops in central and northern areas of Brazil, but the south should turn dry again after some rains in the last week or so. The harvest has been delayed in Thailand. Australia and Central America harvests are also delayed but are more active now. Mills in Brazil are shutting down now with the majority of the harvest now complete and processed. Ideas are that India will produce about 34.3 million tons of Sugar this year, about 4% less than the previous outlook.
Overnight News: Brazil will get scattered showers. Temperatures should average near to above normal. India will get mostly dry conditions and near to above normal temperatures.
Chart Trends: Trends in New York are mixed to down with objectives of 2060 and 1990 March. Support is at 2120, 2080, and 2050 March and resistance is at 2190, 2220, and 2250 March. Trends in London are mixed to down with objectives of 542.00, 525.00, and 486.00 March March. Support is at 549.00, 541.00, and 537.00 March and resistance is at 561.00, 569.00, and 571.00 March.

COCOA
General Comments: New York closed lower and London closed mixed, with only March trading lower on Friday. Futures were lower last week. Both markets show that futures are starting to turn down from mostly a range trade. Weaker demand shown by the grind data that got released recently. Talk is that hot and dry conditions reported in Ivory Coast could curtail mid crop production, but main crop production ideas are strong. Ghana has reported a disease in its Cocoa to hurt production potential there. The rest of West Africa appears to be in good condition. The North American grind was 8.1% lower and the EU and Asian grinds were about 2% lower. Good production is reported for the main crop and traders are worried about the world economy moving forward and how that could affect demand. Supplies of Cocoa are large at ports. The weather is good in Southeast Asia. Ivory Coast port arrivals now total 1.50 million tons for the current marketing year, up 5.7% from last year.
Overnight News: Mostly dry conditions are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average near normal. Brazil will get scattered showers and near to above normal temperatures. ICE certified stocks are lower today at 4.927 million bags.
Chart Trends: Trends in New York are mixed to down with objectives of 2470, 2460, and 2420 March. Support is at 2540, 2510, and 2490 March, with resistance at 2620, 2650, and 2670 March. Trends in London are mixed to down with objectives of 1920 and 1900 March. Support is at 1990, 1950, and 1930 March, with resistance at 2030, 2050, and 2080 March.

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