Softs Report - Monday, July 12

General Comments: New York and London were both lower to start the week as cold air in Brazil produced little damage to Coffee areas. New York stayed weaker but closed higher Friday on what appeared to be some speculative buying tied to dry weather in Southeast Asia. Temperatures are now warmer in Brazil and there are no forecasts for damaging cold for a while. Asian Coffee areas are dry, especially in Southeast Asia, but increasing showers are in the forecast for this week and tree condition should be improved. The move in New York comes as the Brazil crop is coming to the market. The offers are starting to increase as the Arabica harvest is expanding in Brazil. The Robusta harvest is active in Brazil as well. Good conditions are reported in northern South America and good conditions reported in Central America. Colombia is having trouble exporting Coffee 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 2.169 million bags. The ICO daily average price is now 139.98 ct/lb. Brazil will get mostly dry conditions with near normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE said that 0 contracts were posted for delivery today against NY July futures and that total deliveries for the month are now 434 contracts.

Chart Trends: Trends in New York are mixed. Support is at 147.00, 146.00, and 143.00 September, and resistance is at 155.00, 158.00 and 160.00 September. Trends in London are mixed to up with objectives of 1800 and 1880 September. Support is at 1710, 1690, and 1660 September, and resistance is at 1760, 1790, and 1820 September.

General Comments: New York and London were lower again last week as Brazil temperatures have moderated. It was cold enough to damage Sugarcane crops in the central south of Brazil during the cold snap seen the previous week, but ideas are that most of the crop survived and is in good condition. Warmer temperatures are reported now. Mills were also processing for more Ethanol and less for Sugar than expected and this trend should continue with higher world petroleum prices. London has been the leader to the downside on ample supplies of White Sugar available to the market. There is plenty of White Sugar available in India for the market and monsoon rains are promoting good conditions for the next crop. 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 down with objectives of 1710 and 1540 October. Support is at 1700, 1690, and 1670 October, and resistance is at 1760, 1790, and 1820 October. Trends in London are down with objectives of 438.00 October. Support is at 450.00, 445.00, and 440.00 October, and resistance is at 470.00, 477.00, and 482.00 October.

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