COTTON
General Comments: Cotton was a little lower yesterday and trends are turning down on the daily charts as continued stressful weather was seen in the south but export demand was less. There are still ideas and reports of weaker demand potential against an outlook for improved US production in the coming year. There have been demand concerns about Bangladesh and China. However, Chinese demand could start to improve as the government there is injecting a lot of money into the economy in an effort to get the country moving again. Texas and the Southeast have seen some extreme heat so far this year, and Texas has also seen dry conditions at times during the growing season. The Delta has had somewhat better growing conditions but overall the entire crop has seen some stress.
Overnight News:
Chart Trends: Trends in Cotton are mixed to down. Support is at 71.10, 70.20, and 69.30 December, with resistance of 75.80, 77.70 and 79.40 December.

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FCOJ
General Comments: FCOJ closed a little higher as yet another system has formed in the Gulf of Mexico and is already a category 4 hurricane. Significant winds and rains are likely for parts of the Florida peninsula this week from the Gulf storm. The major part of the hurricane should be to the north of citrus country, buts citrus groves will be negatively affected. Growing conditions appear to be generally good for now. The market remains well supported in the longer term based on forecasts for tight supplies in Florida. The reduced production appears to be mostly at the expense of the greening disease. There are no weather concerns to speak of for Brazil right now although reports indicate that Brazil has been hot and dry. Rain is expected this week.
Overnight News:
Chart Trends: Trends in FCOJ are mixed. Support is at 472.00, 459.00, and 453.00 November, with resistance at a 491.00, 497.00, and 506.00 November

COFFEE
General Comments: Both markets were a little higher on follow through buying yesterday as rain remains in the forecast for Brazil crop areas but as crop losses are still a good possibility in Brazil and Vietnam. NY December failed at resistance areas on the daily charts but still closed higher. There are now forecasts for some rains starting today in Brazil as the rainy season is now set to begin after very dry conditions until now. Losses are still possible in Brazil and also Vietnam from previous bad weather. Indonesian offers are still less as producers wait for higher prices before selling. Damage was done to crops earlier in the growing season in Vietnam and lower production is now expected for the next crop.
Overnight News:
Chart Trends: Trends in New York are down. Support is at 242.00, 236.00, and 230.00 December, and resistance is at 253.00, 258.00 and 260.00 December. Trends in London are down. Support is at 4750, 4670, and 4540 November, with resistance at 5100, 5280, and 5410 November.

SUGAR
General Comments: New York and London closed lower yesterday on better rains starting earlier this week and despite overall weakness in world petroleum prices based on reduced fears of the problems in the Mideast. A cold front has moved north from southern Brazil this week that has spread north and brought much needed rains to Sugar areas. Dry conditions seen generally in Brazil continued to support both markets overall. Harvest progress in Brazil and improved growing conditions in India and Thailand are the important fundamentals and growing conditions are dry in Brazil. Indian and Thai monsoon rains have been very beneficial and mills are expecting strong crops of cane.
Overnight News:
Chart Trends: Trends in New York are down. Support is at 2020, 1980, and 1960 March and resistance is at 2270, 2340, and 2360 March. Trends in London are down. Support is at 552.00, 541.00, and 535.00 December, with resistance at 570.00, 586.00, and 590.00 December.

COCOA
General Comments: New York and London closed higher yesterday and short term trends turned up on the daily charts. The rally is not expected to go very far as the harvest is started in West Africa. Production in West Africa could be stronger this year on currently wetter weather in Ivory Coast. Above average rain is now forecast for the next couple of weeks to improve conditions in West Africa. Sources told wire services that the rains seen last week were beneficial for crop development. The availability of Cocoa from West Africa remains very restricted, but surplus production against demand is expected in the next crop year.
Overnight News:
Chart Trends: Trends in New York are mixed to up. Support is at 7060, 6820, and 6600 December, with resistance at 7470, 7570, and 7710 December. Trends in London are mixed to up. Support is at 5130, 4960, and 4860 December, with resistance at 5450, 5730, and 5800 December.

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