Softs Report - Monday, June 1

COCOA
General Comments: New York and London closed a little higher after another volatile week. The virus has complicated farming and marketing efforts. Ideas are that deliveries can be slower on any contracted Cocoa and that the next crop could suffer as workers stay away. The Coronavirus helps keep demand away and helps keep workers from grinding facilities and chocolate manufacturers. The removal of the lockdowns should improve demand in the short term. Harvest is now over for the main crop in West Africa and the results so far are very good. The reports from West Africa imply that a big harvest in the region. Ideas are that Southeast Asia also has good crops.
Overnight News: Isolated to scattered showers are forecast for West Africa. Temperatures will be near 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 higher today at 4.262 million bags. The ICCO said that Cocoa production was 4.75 million tons, 74,000 tons less than its previous estimate. Grindings were 4.783 million tons, also less than expected.
Chart Trends: Trends in New York are mixed. Support is at 2400, 2340, and 2320 July, with resistance at 2460, 2470, and 2490 July. Trends in London are mixed. Support is at 1910, 1890, and 1870 July, with resistance at 1970, 1990, and 2000 July.

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