Cotton

General Comments: Cotton was sharply lower last week on demand fears and on ideas of improving weather for the new crop Cotton. There continues to be the 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 crop conditions are better than expected after a very hot and dry period in West Texas and the rest of the western Great Plains. The Indian weather is cooler and wetter and conditions appear good. There were ideas that production potential is slipping further due to the previously hot and dry weather in West Texas and the rest of the western Great Plains. Chinese demand was shown in the weekly export sales report. 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 as Covid returns.
Overnight News: The Delta will get isolated showers and near above normal temperatures and the Southeast will get isolated showers and near above normal temperatures. Texas will have isolated showers and near to below normal temperatures. The USDA average price is now 111.79 ct/lb. ICE said that certified stocks are now 11,495 bales, from 10,606 bales yesterday. ICE NY said that 0 notices were posted for delivery against July contracts and that total delivery for the month is now 0 contracts.
Chart Trends: Trends in Cotton are down with no objectives. Support is at 95.00, 93.00, and 91.00 December, with the resistance of 99.00, 103.00, and 108.00 December.
 

FCOJ

General Comments: FCOJ was lower last week and trends are down on the charts. The fall 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 the conditions are rated good. Weather conditions in Florida are rated mostly good for the crops with some showers and warm temperatures.
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.
Chart Trends: Trends in FCOJ are down with objectives of 163.00, 162.00, and 153.00 July. Support is at 163.00, 160.00, and 156.00 July, with resistance at 173.00, 177.00, and 182.00 July.
 

Coffee

General Comments: New York closed much lower and London closed lower Friday and both markets were lower for the week on what appeared to be fund-related selling that showed up mostly in the second half of the week. There did not appear to be much news to account for the selling. Less demand for Vietnamese Coffee was hurting the London price action. 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. In fact, certified stocks in New York are becoming low. There is less Coffee on offer from the origin, with Brazil offering less and Central America 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 but the market fears that a freeze could develop.

Photo by Anastasiia Chepinska on Unsplash

Overnight News: ICE-certified stocks are lower today at 0.955 million bags. The ICO daily average price is now 198.14 ct/lb. Brazil will get mostly dry conditions with near to 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 delivery for the month are 0 contracts.
Chart Trends: Trends in New York are mixed to down with objectives of 219.00 and 208.00 September. Support is at 222.00, 218.00, and 216.00 September, and resistance is at 228.00, 235.00, and 237.00 September. Trends in London are mixed to down with objectives of 2040 and 2000 September. Support is at 2030, 2020, and 2010 September, and resistance is at 2090, 2110, and 2120 September.
 

Sugar

General Comments: New York was lower again last week on ideas of bigger supplies. London also closed lower as White Sugar supplies and production are expected to increase after being short recently. New York Raw Sugar and London White Sugar trends are down on the daily charts as India is reported to have a big crop of Sugarcane coming and Brazil is harvesting its crop of Sugarcane and turning most of it into Ethanol but some Sugar is making it into export channels. 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 near to below normal. India will get isolated showers in eastern areas and near to above normal temperatures.
Chart Trends: Trends in New York are down with objectives of 1790 and 1730 October. Support is at 1820, 1790, and 1760 October and resistance is at 1850, 1870, and 1910 October. Trends in London are down with objectives of 534.00 and 509.00 August. Support is at 536.00, 532.00, and 531.00 August and resistance is at 550.00, 555.00, and 565.00 August.
 

Cocoa

General Comments: New York and London were higher Friday on what appeared to be speculative buying despite weak demand ideas. The daily chart show that both markets could be forming bull flags formations in sideways trading Both cocoa markets are also showing signs of a bottom on the daily charts. Reports of sun and dry weather along with very good soil moisture keep big production ideas alive on 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 mid-crop 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 to below normal temperatures. ICE-certified stocks are higher today at 5.554 million bags. ICE NY said that 430 contracts were posted for delivery against July contracts and that the total delivery for the month is now 1,216 contracts.
Chart Trends: Trends in New York are mixed. Support is at 2420, 2390, and 2350 September, with resistance at 2480, 2510, and 2560 September. Trends in London are mixed. Support is at 1750, 1720, and 1690 September, with resistance at 1780, 1790, and 1810 September.