Softs Report - Thursday, March 4


General Comments:  New York and London closed lower and the chart trends remain down in New York and sideways in London. Ideas of increased demand are still around as traditional buyers have been active. The market appears to be searching for a new source of demand to complement the traditional buying. Rains were reported again in Brazil. It has been raining in south-central Brazil and the production of cane is looking solid for the next harvest. Production has been hurt due to dry weather earlier in the year. India is producing less Sugar and more Ethanol. Growing conditions are called good. Thailand might have less this year due to reduced planted area and erratic rains during the monsoon season. The EU Sugar crop is less this year as is the crop in Russia.

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

Chart Trends: Trends in New York are down with objectives of 1590 and 1510 May. Support is at 1600, 1580, and 1560 May, and resistance is at 1670, 1700, and 1720 May. Trends in London are mixed. Support is at 455.00, 451.00, and 446.00 May, and resistance is at 477.00, 485.00, and 490.00 May.


General Comments:  New York and London closed a little higher once again. Demand is expected to improve as the world economies recover from Covid induced downturns. Demand should improve as the vaccinations get administered. The ICCO said that the Cocoa surplus would be about 100,000 tons this year. Ivory Coast estimates its main crop production at 1.65 million tons. There were reports of demand for Cocoa in Ivory Coast, although the reports noted that there is a lot to sell there. The grind data has been weaker again implying less demand for chocolate. There are ideas of big supplies at origin.

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 mostly dry conditions and near to above normal temperatures. ICE-certified stocks are lower today at 3.757 million bags.ICE said that 0 contracts were delivered against March futures and that total deliveries for the month are now 1,142 contracts.

View single page >> |

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 ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.