COTTON       

General Comments: Cotton futures closed higher yesterday on follow-through buying as the bull market remains in place longer term. Short term trends are sideways. It’s been a demand market and prices have been sideways waiting for demand to catch up to the price. Ideas are that demand remains strong for US Cotton. Analysts say the Asian demand is still strong but has been fading in recent weeks.US consumer demand has been very strong as well despite higher prices and inflation. Good US production is expected for next year as planted area is expected to increase due to high Cotton prices and the expense of planting Corn.

Overnight News: The Delta and Southeast will get mostly dry conditions and near to below normal temperatures. Texas will have mostly dry conditions and near to above normal temperatures. The USDA average price is now 119.16 ct/lb.ICE said that certified stocks are now 617 bales, from 617 bales yesterday. ICE NY said that 0 notices were posted against March contracts and that total deliveries for the month are now 0 contracts.

Chart Trends:  Trends in Cotton are mixed. Support is at 11880, 11770, and 11670 May, with resistance of 12220, 12310, and 12450 May.

Stock photos by Vecteezy

FCOJ

General Comments: FCOJ was mixed to higher and trends are mixed on the daily charts. The weather remains generally good for production around the world. Brazil has some rain and conditions are rated very good. Brazil production was down last year due to dry conditions at flowering time and then a freeze just before harvest. Weather conditions in Florida are rated mostly good for the crops with a couple of showers and warm temperatures. Mexican crop conditions in central and southern areas are called good with rains. Northern and western Mexico is rated in good condition.

Overnight News:  Florida should get mostly dry conditions. Temperatures will average near normal. Brazil should get scattered showers and near-normal temperatures.

Chart Trends: Trends in FCOJ are mixed. Support is at 132.00, 130.00, and 127.00 March, with resistance at 139.00, 144.00, and 149.00 March.

COFFEE 

General Comments: New York was higher early yesterday, then closed with small gains, and London closed lower as the logistical and production problems in Brazil and Vietnam are still around. London is showing that the logistics from Vietnam have improved. The dry weather and then the freeze in Brazil have created a lot of problems for the trees to form cherries this year. Containers are not available in Brazil to ship the Coffee. Cherry pickers are hard to find in Vietnam due to Covid problems but the contaiers have been around and the Coffee is getting shipped, at least if the London market is any indication. Vietnam is getting scattered showers on the coast but dry conditions inland. The rest of Southeast Asia should get scattered showers in the islands and mostly dry conditions on the mainland. Production conditions for the next crop in Colombia are not real good.

Overnight News: ICE certified stocks are lower today at 0.990 million bags. The ICO daily average price is now 211.58 ct/lb. Brazil will get scattered showers with near normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE NY said that 0 contracts were tendered against delivery of March contracts and that total deliveries for the month are now 29 contracts.

Chart Trends: Trends in New York are mixed. Support is at 244.00, 241.00, and 238.00 May, and resistance is at 252.00, 255.00, and 257.00 May. Trends in London are mixed. Support is at 2220, 2200, and 2180 May, and resistance is at 2260, 2280, and 2310 May.

SUGAR               

General Comments: New York was mostly a little lower and London was mixed on reports of improved growing conditions for the crops in central-south areas of Brazil.The market showed weakness despite a big rally in Crude Oil futures early in its session.Sugar crops in South Central are still getting a lot of help from the current rains.Demand ideas for Ethanol are improving on fears that Russia might not be able to sell into the world market, but Iran could return to sell with the approval of the west.Ideas are that the supplies are available from India and Thailand but it will take a stronger price to get them into the market.

Overnight News:Brazil will get scattered showers.Temperatures should average near normal.

Chart Trends: Trends in New York are mixed.Support is at 1770, 1750, and 1740 May and resistance is at 1820, 1860, and 1900 May.Trends in London are mixed to up with objectives of 499.00 and 512.00 May.Support is at 487.00, 483.00, and 479.00 May and resistance is at 506.00, 509.00, and 513.00 May.

DJ Brazil Center-South Sugar Mills Made Only Ethanol in 1H February

By Jeffrey T. Lewis

  SAO PAULO–Brazilian sugar mills in the country’s center-south region crushed no cane and made only ethanol in the first half of February.

  It was the fourth consecutive two-week period in which the region’s mill produced no sugar. They made 158 million liters of ethanol using corn as a raw material. That production was an increase of 20.2% from the same period a year earlier.

  In the period from April 1 through Feb. 15, mills in the region crushed 521.6 million tons of cane, down 12.8% from the same period a year earlier. Sugar production fell 16.2%, to 32 million tons, and ethanol output declined 8.9%, to 27 billion liters.

COCOA                                                                                 

General Comments: New York and London closed higher yesterday in correction trading as the weather is generally too dry for West Africa and good in Southeast Asia.Ideas are that demand will only improve slightly if at all and production in West Africa appears to be good this year.Both Ivory Coast and Ghana are reporting improved weather as it is now mostly sunny with some scattered showers around.  Some farmers want more rain for the best Spring harvest results.Trends are starting to turn up in these markets.

Overnight News:Mostly dry conditions are forecast for West Africa.Temperatures will be near to above normal.Malaysia and Indonesia should see showers.Temperatures should average above normal.Brazil will get scattered showers and near normal temperatures.ICE certified stocks are lower today at 4.723 million bags.ICE NY said that 285 contract were delivered against March delivery and that total deliveries for the month are now 322 contracts.

Chart Trends:Trends in New York are mixed to down with objectives of 2510 May.Support is at 2610, 2580, and 2550 May, with resistance at 2700, 2740, and 2790 May.Trends in London are mixed.Support is at 1730, 1700, and 1680 May, with resistance at 1780, 1800, and 1820 May.