Photo by Karl Wiggers on Unsplash

COTTON
General Comments: Cotton closed lower yesterday on weaker Chinese economic data and a lower US stock market. USDA showed that farmers planted just 10.678 million acres of All Cotton, down from March intentions of 11.102 million acres and 13.479 million planted last year. Reports indicate that more showers that continue to improve crop conditions in Texas and into the Southeast this week. Ideas of weaker demand due to economic problems in Asia and improved production prospects here at home continue. The weather has improved, but it had been very hot. There are still many concerns about demand from China and the rest of Asia due to the slow economic return of China in the world market and as China is trying not to buy from the US. Forecasts for showers are still showing in forecasts for West Texas to Oklahoma and Kansas and are expected to be beneficial. Showers are also forecast for the Delta and Southeast.
Overnight News: The Delta will get isolated showers and near to above normal temperatures. The Southeast will see isolated showers and near to above normal temperatures. Texas will have scattered showers and near to above normal temperatures. The USDA average price is now 76.12 ct/lb. ICE daily certified stocks are now 8,926 bales, from 8,926 bales yesterday. ICE said that 0 notices were posted for delivery against July contracts and that total deliveries for the month are now 171 contracts.
Chart Trends: Trends in Cotton are up with no objectives. Support is at 79.50, 78.30, and 77.60 December, with resistance of 82.10, 82.60 and 83.30 December.

FCOJ
General Comments: FCOJ closed higher yesterday and trends remain mixed on the charts. Futures remain supported by very short Oranges production estimates for Florida but seem to have factored in the production losses into the current prices. Historically low estimates of production due in part to the hurricanes and in part to the greening disease that have hurt production, but conditions are significantly better now with scattered showers and moderate temperatures. The weather remains generally good for production around the world for the next crop including production areas in Florida that have been impacted in a big way by the two storms seen previously in the state. Brazil has some rain and conditions are rated good.
Overnight News: Florida should get isolated 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 July futures and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 248.00, 243.00, and 238.00 September, with resistance at 262.00, 266.00, and 269.00 September.

COFFEE
General Comments: Both markets closed lower as the Brzil harvest is moving quickly along. Cooxupe now says that the harvest is 34% complete, just off the record pace of 36% made several years ago.. There are reports of dry weather for the harvest in Arabica production in Brazil with high production expectations and that production is now being harvested and starting to get exported. The Arabica harvest has expanded and offers of Arabica from Brazil are increasing. There are still tight Robusta supplies for the market amid strong demand for Robusta, but the Brazil harvest is in the market now and is expected to take much of the demand. Producers in Vietnam and Indonesia are said to have almost nothing left to sell and producers in Colombia are also reported to be short Coffee to sell. The market really needs big offers from Brazil to sustain any downside movement. Southeast and south Asian producers could see another tough production year this year due to the effects of El Nino, but the weather appears to be good in these areas for now.
Overnight News: ICE certified stocks are unchanged today at 0.544 million bags. The ICO daily average price is now 156.73 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Central America will get mostly dry conditions. Vietnam will see scattered showers. ICE NY said that 41 notices were posted for delivery against July contracts and that total deliveries for the month are now 695 contracts.
Chart Trends: Trends in New York are down with no objectives. Support is at 157.00, 154.00, and 151.00 September, and resistance is at 163.00, 158.00 and 170.00 September. Trends in London are mixed to down with objectives of 2410 September. Support is at 2460, 2420, and 2370 September, with resistance at 2600, 2670, and 2690 September.

SUGAR
General Comments: New York closed a little lower and London was higher yesterday on reports indicated that Brazil production increasing and as the weather in Southeast Asia is currently good for their next crop production prospects. The Brazil production is apparently not enough to change the narrative of tight world supplies, but more Sugar is now available to the world market and prices are reacting. India will restrict imports until the first half of next year. The current year export quota is already gone and the government has no plans to allow for additional exports at this time. The market is still hurt by good growing and harvesting conditions in Brazil but supported by tight current supplies. The production is not there to meet the demand in many countries, with only Brazil among the major producers looking to have a good crop. Indian production is less this year and Pakistan also has reduced production, but the monsoon has been good so far so both countries might have increased production next year. In addition, India announced a higher base price for Sugar paid to farmers to help promote additional planted area.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to below normal. India will get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in New York are mixed to up with objectives of 2450 and 2590 October. Support is at 2270, 2180, and 2150 October and resistance is at 2400, 2420, and 2470 October. Trends in London are mixed to up with objectives of 665.00 and 694.00 October. Support is at 630.00, 619,00, and 606.00 October, with resistance at 661.00, 672.00, and 675.00 October.

COCOA
General Comments: Both markets closed lower yesterday on ideas that futures were overbought but as ideas of tight supplies continue. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast continue, Talk is that hot and dry conditions reported earlier in Ivory Coast could curtail main crop production, and main crop production ideas are not strong. Midcrop production ideas are strong due to rain mixed with some sun recently reported in Cocoa areas of the country.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average near normal. Brazil will get isolated showers and near to above normal temperatures. ICE certified stocks are higher today at 5.546 million bags. ICE NY said that 0 notices were posted for delivery against July contracts today and that total deliveries for the month are now 566 contracts.
Chart Trends: Trends in New York are up with objectives of 3470 September. Support is at 3240, 3180, and 3130 September, with resistance at 3410, 3440, and 3470 September. Trends in London are up with no objectives. Support is at 2590, 2570, and 2500 September, with resistance at 2660, 2680, and 2720 September.

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