Softs Report - Monday, June 1

COFFEE
General Comments: Futures were lower in New York and a little higher in London. New York was lower on depressed consumer and roaster demand in the US and Europe. Funds turned sellers on the breakthrough important support on the charts. The chart trends in New York are down, but London trends remain mixed. The demand from coffee shops and other foodservice operations has dropped to almost nothing. Consumers are still drinking Coffee at home, but many smaller roasters are actively trying to unload green coffee already bought a there are only a few outlets for sales at this time. This should change in the next few weeks as the US and EU economies slowly open up. The logistics of moving Coffee from Central and South America remain difficult. Producers have had trouble getting workers to pick the cherries and mills and processors have had trouble getting workers to staff the plants. Shipping logistics have improved somewhat, but many are still having trouble getting the Coffee to ports to move to consumer nations. Vietnamese producers are not selling due to the weaker prices paid currently and the effects of the Coronavirus. Indonesian producers are more active sellers.
Overnight News: ICE certified stocks are lower today at 1.760 million bags. The ICO daily average price is now 98.68 ct/lb. Brazil will get a dry week with near to above normal temperatures. Vietnam will see light to moderate showers.
Chart Trends: Trends in New York are down with objectives of 96.00 July. Support is at 95.00, 92.00, and 89.00 July, and resistance is at 102.00, 105.00 and 107.00 July. Trends in London are mixed. Support is at 1170, 1150, and 1130 July, and resistance is at 1210, 1230, and 1240 July.

SUGAR
General Comments: New York closed slightly higher with London lower. Prices have rallied well from the lows but both markets are showing signs of failing just when longer term chart trends were turning up. The recently weaker petroleum futures had made higher priced ethanol that much more expensive to blend and cuts demand. Prices in petroleum futures remained generally firm last week but still have a long way to go before Ethanol processing becomes profitable again. That makes more Sugarcane available for processing into Sugar in Brazil. The Brazil mills are trying to cover the lack of White Sugar in the market and the futures market price action suggests that they are succeeding. Reports indicate that little is on offer from India in part due to logistical and harvest problems caused by the Coronavirus. Thailand might also have less this year due to reduced planted area and erratic rains during the monsoon season. There are reduced flows from rivers from China as well.
Overnight News: Brazil will get a dry week. Temperatures should average near to below normal.
Chart Trends: Trends in New York are mixed. Support is at 1070, 1040, and 1020 October, and resistance is at 1130, 1160, and 1180 October. Trends in London are mixed to down with objectives of 329.00, 324.00, and 285.00 August August. Support is at 343.00, 340.00, and 328.00 August, and resistance is at 371.00, 379.00, and 387.00 August.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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