COTTON
General Comments: Cotton was higher Friday on speculator buying tied to oversold market conditions. Trends are now mixed on the daily charts but are down on the weekly charts. There continues to be talk of a big recession here in the US and around the world. Traders worry that the continued Chinese lockdowns will hurt demand for imported Cotton for that country and that a weaker economy in the west will hurt demand from the rest of the world. There are forecasts for hot and dry weather to return this week after some showers in West Texas and the rest of the Great Plains over the last couple of weeks. The Indian weather is cooler and wetter and conditions appear good. Chinese demand could become less due to the Covid lockdowns there be trimming imports due to Covid and has closed a number of cities as the Covid spreads through the nation. The cities and ports are shut down again.
Overnight News: The Delta will get isolated showers and near to above normal temperatures and Southeast will get scattered showers and above normal temperatures. Texas will have mostly dry conditions and above normal temperatures. The USDA average price is now 107.25 ct/lb. ICE said that certified stocks are now 18,660 bales, from 17,716 bales yesterday. ICE NY said that 30 notices were posted for delivery against July contracts and that total deliveries for the month are now 173 contracts.
Chart Trends: Trends in Cotton are mixed. Support is at 92.40, 88.10, and 87.60 December, with resistance of 99.60, 100.80 and 103.20 December.

Photo by Anastasiia Chepinska on Unsplash

FCOJ
General Comments: FCOJ was slightly lower and lower for the week. Trends are mixed on the daily and weekly charts. The recent market weakness has been dramatic since the market made new contract highs earlier this month. The weather remains generally good for production around the world for the next crop. Brazil has some rain and conditions are rated good. Weather conditions in Florida are rated mostly good for the crops with some showers and warm temperatures. The Florida FCOJ movement and pack report showed that inventories are more than 24% below last year. Nielsen said that 29.22 million gallons of FCOJ were sold through June 16, the lowest volume since October 2019. Volumes are now 23% below those of last year.
Overnight News: Florida should get isolated showers. Temperatures will average near to above normal. Brazil should get mostly dry conditions and near to above normal temperatures. ICE said that 0 contracts were posted for delivery against July futures and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed to down with objectives of 157.00 September. Support is at 161.00, 158.00, and 155.00 September, with resistance at 170.00, 175.00, and 179.00 September.

COFFEE
General Comments: New York and London closed higher Friday after making new lows for the moved on the daily charts. The weekly charts show that New York tested support at the bottom of a small trading range. Trends are down in London on the weekly charts. Futures remain rather cheap and certified stocks keep dropping. Demand for Coffee overall is thought to be less as the world economic situation changes for the worse but the strong cash market means that even less Coffee is on offer. There is less Coffee on offer from origin, with Brazil offering less and Central America and Vietnam offering less as well. Temperatures are near to above normal in Brazil and there are no forecasts for frosts or freezes in the short term. Colombia produced 951,000 60kg bags of washed arabica coffee in June, the Colombian Coffee Federation said on Tuesday, down 10% from the same month last year because of wet weather.
Overnight News: ICE certified stocks are lower today at 0.789 million bags. The ICO daily average price is now 195.83 ct/lb. Brazil will get mostly dry conditions with above normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE NY said that 0 contracts were tendered for delivery against July futures and that total deliveries for the month are 73 contracts.
Chart Trends: Trends in New York are mixed. Support is at 215.00, 212.00, and 210.00 September, and resistance is at 224.00, 226.00 and 228.00 September. Trends in London are mixed. Support is at 1970, 1940, and 1910 September, and resistance is at 1990, 2000, and 2020 September.

SUGAR
General Comments: New York and London closed higher again Friday and near the highs for the week. The weekly charts suggest that a strong rally is now possible. The markets had become oversold early in the week and the US Dollar was steady. White Sugar supplies and production are short right now. New York Raw Sugar tends are still down but London White Sugar trends are sideways to perhaps up on the daily charts. India is reported to have a big crop of Sugarcane coming and as Brazil is harvesting its crop of Sugarcane and turning most of it into Ethanol but some Sugar is making it into export channels. Ethanol demand ideas were hurt again yesterday on continued weakness in Crude Oil futures. Sugar production from these countries is expected to be surplus or at least in line with demand. Thailand is still offering and exporting. Reports from India indicated that conditions are generally good for Sugar production. The Indian weather service is predicting a normal monsoon season this year.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average above normal. India will get isolated showers in eastern areas and near to above normal temperatures.
Chart Trends: Trends in New York are mixed to up with objectives of 1940, 2020, and 2200 October. Support is at 1870, 1850, and 1820 October and resistance is at 1910, 1960, and 1990 October. Trends in London are up with objectives of 545.00, 549.99, and 560.00 October. Support is at 534.00, 526.00, and 519.00 October and resistance is at 544.00, 553.00, and 558.00 October.

COCOA
General Comments: New York and London were higher last week and trends are sideways in New York and in London. Selling came from ideas that a recession for the world is just around the corner and this was reinforced by a major rally in the US Dollar. The selling could run through the market again today or else the funds could rest as they have already liquidated a lot of positions. Reports of sun and dry weather along with very good soil moisture keep big production ideas alive in Ivory Coast. Some very good rains were reported last week. Ideas are still that good production is expected from West Africa for the year. The weather is good for harvest activities in West Africa. Current reports from Ivory Coast indicate that the weather is a good mix of sun and rain so a good midcrop production is expected. The weather is good in Southeast Asia.
Overnight News: Scattered showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near normal temperatures. ICE certified stocks are lower today at 5.535 million bags. ICE NY said that 0 contracts were posted for delivery against July contracts and that total deliveries for the month are now 2,411 contracts.
Chart Trends: Trends in New York are mixed. Support is at 2280, 2260, and 2230 September, with resistance at 2400, 2430, and 2470 September. Trends in London are mixed to up with objectives of 1770, 1800, and 1810 September. Support is at 1750, 1730, and 1700 September, with resistance at 1780, 1790, and 1810 September.

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