COTTON
General Comments: Futures were higher again Friday and were higher for the week as speculators bought on weather concerns and on ideas of increasing demand. The weekly export sales report showed only moderate demand but the monthly WASDE report helped fuel the charge higher last week. Production was increased due to a sharp increase in planted and harvested area, but yields were lower. Exports were increased as domestic demand remained unchanged. Ending stocks were higher but still show that a tight situation is developing. Production ideas are being impacted in just about all areas due to the weather extremes. Demand was increased in the weekly export sales report and is expected to stay strong as the world economy rebounds from the Covid times.
Overnight News: The Delta will get scattered showers and near-normal temperatures and Southeast will get scattered showers and near-normal temperatures. Texas will have isolated showers and near to below normal temperatures. The USDA average price is now 86.59 ct/lb. ICE said that certified stocks are now 107,517 bales, from 110,746 bales yesterday. ICE said that 0 notices were posted for July delivery and that total deliveries for the month are now 117 contracts.
Chart Trends: Trends in Cotton are up with objectives of 9050 December. Support is at 8850, 8760, and 8630 December, with resistance of 9000, 9060, and 9120 December.

Image by JamesDeMers from Pixabay

FCOJ
General Comments: FCOJ closed lower on Friday but higher for the week even as there are no new tropical systems forming in the Atlantic at this time and conditions in Florida are rated mostly good for the crops. USDA slightly increased its production estimate for the second month in its production reports released on Monday. A big storm could threaten trees and fruit. Brazil is reported to be in good condition, but dry. It has been cold but any damage is called minor. Cold weather is forecast for later this week and a little damage is possible although rated as not likely by forecasters. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northern and western Mexico areas are getting some rains and conditions are rated mostly good. Some areas have had too much rain. Florida inventories are now 16.7% below a year ago.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near normal temperatures. ICE said that 0 notices were posted for delivery against July contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 125.00, 122.00, and 121.00 September, with resistance at 132.00, 135.00, and 138.00 September.

COFFEE
General Comments: New York was higher and London closed higher on Friday and for the week on weather and demand concerns. London remains firm overall on some speculative and commercial buying tied to dry weather in Southeast Asia and on reports that Vietnamese producers were not selling or delivering. New York was higher along with the Brazilian Real as producers there were not willing to sell with the stronger Real. Temperatures are now warmer in Brazil and there are no forecasts for damaging cold for a few days. It could get vey cold after that although maybe not cold enough to damage trees. There were some losses created by a hot and dry start to the growing season that impacted flowering and initial cherry development and a little Coffee was lost during the freeze event a couple of weeks ago. Asian Coffee areas are dry, especially in Southeast Asia, but increasing showers are coming this week and tree condition should be improved. 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 parts of Asia and parts of Africa.
Overnight News: ICE-certified stocks are higher today at 2.185 million bags. The ICO daily average price is now 147.60 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 to up with objectives of 163.00 and 168.00 September. Support is at 158.00, 155.00, and 152.00 September, and resistance is at 162.00, 164.00 and 168.00 September. Trends in London are up with objectives of 1800 and 1880 September. Support is at 1740, 1710, and 1690 September, and resistance is at 1790, 1820, and 1850 September.

SUGAR
General Comments: New York and London were higher Friday as the medium-term trends are up again. Reports of damaged can in Brazil from the recent cold snap were heard and pictures of the damaged were tweeted. Brazil temperatures have moderated and the weather there is considered mostly good for production. Warmer temperatures are reported now but it is forecast to turn cold again this week. It might not get cold enough to damage the cane but the market is worried and has added weather premium to the price. 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 and as demand for White Sugar is less. There is plenty of White Sugar available in India for the market and monsoon rains are promoting good conditions for the next crop. The Indians are selling with or without a subsidy from the government. 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 up with objectives of 1770 and 1820 October. Support is at 1720, 1670, and 1640 October, and resistance is at 1790, 1820, and 1850 October. Trends in London are up with objectives of 476.00 October. Support is at 452.00, 446.00, and 440.00 October, and resistance is at 470.00, 477.00, and 484.00 October.

COCOA
General Comments: New York and London closed lower on Friday but higher for the week on indications of stronger demand. The European grind data was released early last week and showed a strong recovery from the Covid times. Asian data was released on Friday and also showed increased demand, although not as much of an increase than showed for Europe. The daily charts show short term mixed trends in New York and in London and the fundamentals remain bearish despite the increased demand. Ports in West Africa are filled with Cocoa right now. The weather has had above average rains in West Africa and crop conditions are rated good.
Overnight News: Isolated 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 5.814 million bags. ICE said that 0 contracts were posted for July delivery and that total deliveries for the month are now 271 contracts.
Chart Trends: Trends in New York are mixed. Support is at 2320, 2270, and 2240 September, with resistance at 2390, 2440, and 2460 September. Trends in London are mixed. Support is at 1570, 1540, and 1510 September, with resistance at 1630, 1660, and 1670 September.