Photo by Chang Duong on Unsplash

Cotton

General Comments: Cotton closed higher on Friday and was in a trading range for most of last week in anticipation of the USDA reports that will be released later this morning. Chart support was noted at 101.00 December and some speculative buying was noted at that level. The harvest is coming and the market is preparing for it. The trade is still worried about demand moving forward due to recession fears and Chinese lockdowns but is also worried about total US production potential. The Chinese quarantine is one week now instead of one month as before. It is possible that the continued Chinese lockdowns will continue to 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.
Overnight News: The Delta will get mostly dry conditions and near to below normal temperatures and the Southeast will get isolated to scattered showers and near to above normal temperatures. Texas will have mostly dry conditions and near to above-normal temperatures. The USDA average price is now 110.38 ct/lb. ICE said that certified stocks are now 4,552 bales, from 4,552 bales yesterday.
Chart Trends: Trends in Cotton are down with objectives of 96.70, 77.50 December. Support is at 101.20, 99.50, and 97.60 December, with resistance of 106.00, 108.70 and 111.00 December.
 

FCOJ

General Comments: FCOJ turned sideways late in the week after trending down. 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. It has been dry in Brazil. Mexican areas are showing mixed trends, with dry weather in some northern areas but better weather to the south. FCOJ inventories are now 39.8% less than a year ago.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near to above-normal temperatures. ICE said that 0 notices were posted for delivery against September contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed to down with no objectives. Support is at 162.00, 159.00, and 156.00 November, with resistance at 173.00, 175.00, and 178.00 November.
 

Coffee

General Comments: New York and London were higher on Friday and London as the US Dollar moved sharply lower and offset ideas of improving conditions for the Brazil crop and hopes for better offers. There is concern that Brazil will produce less Coffee this year due to very dry conditions after early rains led to premature flowering. The forecasts call for some light and isolated to scattered showers in the region for this weekend. Vietnam has also been dry and wire reports from there indicate that production losses are likely. Demand for Coffee overall is thought to be less but the cash market remains strong. There is less Coffee on offer from the origin, with Brazil offering less and Central America and Vietnam offering less as well. The weather in Brazil is good for Coffee production and any harvest activities. Temperatures are mostly above normal in Brazil and conditions are mostly dry. The dry weather is raising some concerns about the next crop potential but it is normally dry at this time of year.
Overnight News: ICE-certified stocks are lower today at 0.615 million bags. The ICO daily average price is now 204.41 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 posted for delivery against September futures and that total deliveries for the month are now 1,399 contracts.
Chart Trends: Trends in New York are down with no objectives. Support is at 226.00, 221.00, and 217.00 December, and resistance is at 231.00, 234.00 and 237.00 December. Trends in London are mixed. Support is at 2240, 2220, and 2200 November, and resistance is at 2300, 2350, and 2390 November.
 

Sugar

General Comments: New York and London were higher on Friday in range trading. Support came from a sharply lower US Dollar and selling appeared as the market tries to identify much demand. The New York market is worried that the lack of clarity about ethanol demand in Brazil will force mills down there to produce more Sugar for export. The London market had been looking for increased supplies from the origin and now is more worried about demand after recent price strength. Brazil is harvesting its crop of Sugarcane and turning some of it into Ethanol but is making more Sugar and some of that Sugar is making it into export channels. The production mix could change in the short term to include more Sugar. Indian exporters are waiting for the government to announce its export policy for the coming year. The EU is expected to have a shortfall of 785,000 tons of White Sugar this year due to fewer Sugarbeets production caused by the drought. Processors have opened early to begin processing the beets.
Overnight News: Brazil will get isolated showers. Temperatures should average near to above normal. India will get isolated showers in eastern areas and near to above-normal temperatures.
Chart Trends: Trends in New York are mixed. Support is at 1760, 1740, and 1710 March and resistance is at 1810, 1830, and 1850 March. Trends in London are mixed. Support is at 535.00, 530.00, and 527.00 December and resistance is at 544.00, 547.00, and 553.00 December.
 

Cocoa

General Comments: New York and London were a little higher with the US Dollar moving lower, but ideas of big production and uncertain demand kept the markets in a sideways trend at best. Trends are mixed in both markets but the price action has been weak. Reports indicate that buyers of Cocoa have enough coverage for now and can afford to wait for lower prices to develop. Supplies of Cocoa are as large as they will be now for the rest of the marketing year. Reports of scattered showers along with very good soil moisture from showers keep big production ideas alive in Ivory Coast. Ideas are still that good production is expected from West Africa for the year. The weather is good for harvest activities in West Africa but the harvest should be winding down now. The weather is good in Southeast Asia.
Overnight News: Isolated 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-normal temperatures. ICE-certified stocks are lower today at 5.756 million bags. ICE NY said that 61 notices were posted for delivery against September contracts and that total deliveries for the month are now 2,641 contracts.
Chart Trends: Trends in New York are mixed to down with objectives of 2290 December. Support is at 2350, 2320, and 2310 December, with resistance at 2400, 2430, and 2450 December. Trends in London are mixed. Support is at 1830, 1800, and 1770 December, with resistance at 1880, 1900, and 1930 December.

More By This Author: