Softs Report - Thursday, April 15

field of cotton trees

Source: Unsplash 

COFFEE
General Comments: Futures were higher in both markets with New York leading the way. The dry weather in Brazil and the lack of exports now and down the road are supporting futures. The London market is trying to form a low on the daily charts. Trends are up on the daily charts in New York. Vietnam producers are selling some Coffee amid reports of good weather in Vietnam for the harvest. Indonesia has had good weather but has little coffee to sell now. Dry conditions are reported in Brazil again. Trees might get stressed again in the dry weather continues as it is forecast to do. Cooxupe has said in the last few weeks that its members anticipate producing about 32% less Coffee this year due to dry and hot conditions last year and the second year of the production cycle for the trees. Cecafe also expects reduced exports in the coming year. Central America is also drier for harvesting but production might have been reduced due to very wet conditions during the growing season. Good growing conditions are reported in Colombia and Peru. Africa is also noting good growing conditions. Good growing conditions are generally reported in Southeast Asia.
Overnight News: ICE-certified stocks are higher today at 1.876 million bags. The ICO daily average price is now 122.34 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Central America will get scattered showers or dry conditions. Vietnam will see mostly dry conditions.
Chart Trends: Trends in New York are up with objectives of 136.00 and 140.00 May. Support is at 129.00, 127.00, and 125.00 May, and resistance is at 134.00, 136.00 and 140.00 May. Trends in London are mixed to up with objectives of 1380, 1410, and 1600 May. Support is at 1350, 1330, and 1310 May, and resistance is at 1370, 1400, and 1420 May.

SUGAR
General Comments: New York and London closed higher yesterday and trends have turned up in both markets. Ideas of stronger Ethanol demand helped support Sugar prices last week as the competition is back for crushing and refining use. Current Sugar demand is called average. Dry conditions were reported in Brazil. It has been raining in south-central Brazil until recently and the production of cane is looking good for the next harvest. Production has been hurt due to dry weather earlier in the year and this week is dry. Some rain is in the forecast in a few days. Traders are worried about a delayed Brazil harvest and lack of space at Brazil ports for Sugar shipments due to the high Soybeans shipments and delayed nature of the harvest of the Soybeans. India is exporting Sugar and is reported to have a big cane crop this year. Thailand is expecting improved production after drought-induced yield losses last year.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed to up with objectives of 1590, 160-0, and 1620 July. Support is at 1560, 1530, and 1510 July, and resistance is at 1590, 1610, and 1650 July. Trends in London are up with objectives of 438.00, 447.00, and 464.00 August. Support is at 436.00, 428.00, and 426.00 August, and resistance is at 449.00, 452.00, and 458.00 August.

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