COTTON
General Comments: Cotton was sharply higher to limit up yesterday on ideas of stronger export demand and and ideas that the market was oversold. Wir3e reports indicate that speculators were covering short positions. There are also some big problems with too much rain in the Delta and Southeast in recent days. Trends are turning mixed on the charts. Demand has been weaker so far this year but there are hopes for improved demand with the lower prices. The US economic data has been positive, but the Chinese economic data has not been real positive and demand concerns are still around. However, Chinese consumer demand has held together well, and demand for Cotton in world markets has started to increase.
Overnight News:
Chart Trends: Trends in Cotton are mixed. Support is at 76.70, 75.00, and 73.70 July, with resistance of 79.80, 80.70, and 81.40 July.

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FCOJ
General Comments: FCOJ closed sharply higher again yesterday, on speculative buying. USDA said that Florida production was estimated at 17,8 million boxes, down 5% from the last estimate but still 13% above the production of last year. The reduced production appears to be at the expense of the greening disease. There are no weather concerns to speak of for Florida or for Brazil right now. The weather has improved in Brazil with some moderation in temperatures and increased rainfall amid reports of short supplies in Florida and Brazil are around but will start to disappear as the weather improves and the new crop gets harvested.
Overnight News: ICE said that 21 notices were posted for delivery against May futures and that total deliveries for the month are now 21 contracts.
Chart Trends: Trends in FCOJ are up with objectives of 421.00 July. Support is at 456.00, 441.00, and 438.00 July, with resistance at 474.00, 480.00, and 486.00 July.

COFFEE
General Comments: New York and London closed higher yesterday on more speculative short covering that came from forecasts for another couple of weeks of dry weather in Vietnam. Chart tends turned up with the price action yesterday. Ideas of less production in Vietnam are driving the rally. There were indications that Brazil and Vietnam producers were now offering Coffee, buts in small amounts, Vietnamese producers are reported to have about a quarter of the crop left to sell or less and reports indicate that Brazil producers are reluctant sellers for now after selling a lot earlier in the year. Exports from Brazil have remained strong. The next Robusta harvest in Brazil is continuing.
Overnight News: The ICO daily average price is now 218.62 ct/lb. Brazil will get mostly scattered showers with near normal temperatures. Central America will get mostly dry conditions. Vietnam will see scattered showers.
Chart Trends: Trends in New York are up with objectives of 223.00 and 240.00 July. Support is at 213.00, 208.00, and 204.00 July, and resistance is at 223.00, 226.00 and 229.00 July. Trends in London are up with objectives of 3380 and 3740. Support is at 3740, 3540, and 3430 July, with resistance at 4000, 4130, and 4240 July.

SUGAR
General Comments: Both markets closed lower again yesterday. Trends remain down on the daily charts. There are still ideas that the Brazil harvest can be strong for the next few weeks if not longer. Harvest weather is called good in center-south Brazil. There are worries about the Thai and Indian production, but data shows better than expected production from both countries. Offers from Brazil are still active. Ukraine is stopping offers to the EU as the country has already shipped its quota.
Overnight News: Brazil will get rains in the south and scattered showers in the north. Temperatures should average above normal. India will get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in New York are mixed to down with objectives of 1730 July. Support is at 1770, 1740, and 1710 July and resistance is at 1800, 1820, and 1850 July. Trends in London are mixed to down with objectives of 528.00 August. Support is at 526.00, 520.00, and 514.00 August, with resistance at 555.00, 566.00, and 571.00 August.

COCOA
General Comments: Both markets were a little higher yesterday on what appeared to be some speculative short covering. Trends are turning mixed to down on the daily charts. Production concerns in West Africa as well as demand from nontraditional sources along with traditional buyers keep supporting futures. Production in West Africa could be reduced this year due to the extreme weather which included Harmattan conditions. The availability of Cocoa from West Africa remains very restricted and projections for another production deficit against demand for the coming year are increasing. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast and Ghana continue. Mid crop harvest is now underway and here are hopes for additional supplies for the market from the second harvest. Demand continues to be strong, especially from traditional buyers of Cocoa. Main crop cocoa arrivals in Ivory Coast ports are now 1.437 million metric tons since the start of the season on Oct. 1, down 29% from the same period last season.
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 above normal temperatures.
Chart Trends: Trends in New York are down with no objectives Support is at 6420, 5910, and 5610 July, with resistance at 7950, 8390, and 9090 May. Trends in London are down with no objectives. Support is at 5230, 4790, and 4700 July, with resistance at 6730, 7000, and 7280 July.

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