Softs Report - Thursday, April 29

Coffee Beans, Coffee Cup, Cup, Coffee, Benefit From

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COFFEE
General Comments: New York closed little changed and London closed higher again yesterday as the fears of dry weather impacting the Brazil production continued. It remains generally dry there and there are no forecasts for any significant rains in Coffee areas. Some cooperatives and the export association are calling for a significant reduction in production with a 30% loss in production potential mentioned. It was dry at flowering time as well. It is also the off-year in the two-year production cycle. Production conditions elsewhere in Latin America are mixed with good conditions reported in northern South America and improved conditions reported in Central America after devasting floods early in the growing cycle. Conditions are reported to be generally good in Asia and Africa.
Overnight News: ICE-certified stocks are higher today at 1.918 million bags. The ICO daily average price is now 130.87 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 scattered showers. ICE said that 21 contracts were tendered for delivery against NY May futures and that total deliveries for the month are now 876 contracts.
Chart Trends: Trends in New York are up with no objectives. Support is at 142.00, 138.00, and 134.00 July, and resistance is at 148.00, 151.00, and 153.00 July. Trends in London are up with objectives of 1450 July. Support is at 1440, 1410, and 1390 July, and resistance is at 1470, 1500, and 1510 July.

SUGAR
General Comments: New York and London closed lower and gave back the gains of the previous day on reports of selling from India. Fears of dry Brazilian weather continued. The seasonal crush is off to a slow start and Sugar content of the cane is reduced in initial industry reports from the center-south of Brazil. 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. The primary growing region has been dry in Brazil. Production has been hurt due to dry weather earlier in the year. 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. Exports are expected by USDA to be higher in the coming year. The EU had big production problems last year.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are up with no objectives. Support is at 1700, 1680, and 1660 July, and resistance is at 1780, 1820, and 1850 July. Trends in London are up with objectives of 484.00 August. Support is at 459.00, 450.00, and 442.00 August, and resistance is at 481.00, 488.00, and 494.00 August.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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