Photo by Marianne Krohn on Unsplash
 

Cotton

General Comments: Cotton closed higher yesterday in recovery trading despite additional strength n the US Dollar. Futures had become oversold with the down move seen in recent days and needed to bounce a bit before any new selling became possible. Price trends turned down last week when futures broke through some short-term support areas and the selling has continued this week. Traders are worried about a global recession and demand in that recession. The late-season weather in the Great Plains was better and the crop showed improvement but production is still very short. The harvest is appearing n the market, and the market is preparing for it sideways to lower prices. The trade is still worried about demand moving forward due to recession fears and Chinese lockdowns but is also worried about total US production potential. It is possible that the continued Chinese lockdowns will continue to hurt demand for imported Cotton for that country and that a weaker economy in the west will hurt demand from the rest of the world.
Overnight News: The Delta and Southeast will get mostly dry conditions and above-normal temperatures. Texas will have mostly dry conditions and above-normal temperatures. The USDA average price is now 97.56 ct/lb. ICE said that certified stocks are now 769 bales, from 4,552 bales yesterday. USDA said that weekly net Upland Cotton export sales were 32,400 bales this year and 13,300 bales next year. Net Pima sales were 300 bales this year and 0 bales next year.
Chart Trends: Trends in Cotton are down with objectives of 9670 December. Support is at 92.40, 91.60, and 88.80 December, with resistance of 102.00, 106.00 and 108.40 December.
 

FCOJ

General Comments: FCOJ was a little lower yesterday in consolidation trading. The weather remains generally good for production around the world for the next crop. Brazil has some rain and the conditions are rated good. More showers are in the forecast for the coming days. Weather conditions in Florida are rated mostly good for the crops with some showers and warm temperatures. Mexican areas are showing mixed trends, with dry weather in some northern areas but better weather to the south. FCOJ inventories are now 40.8% less than a year ago.
Overnight News: Florida should get scattered 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 September contracts and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are mixed to up with objectives of 184.00 and 194.00 November. Support is at 174.00, 169.00, and 167.00 November, with resistance at 182.00, 184.00, and 192.00 November.
 

Coffee

General Comments: New York and London closed lower as the US Dollar rallied sharply and the Fed raised interest rates by o.75%. The Fed move was expected but still produced a big reaction in just about all markets. CONAB estimated total Coffee production this year at 50.38 million bags, from 47.72 million last year and 53.43 million estimated earlier in the year. Arabica production is estimated at 32.41 million bags and Robusta production is estimated at 17.97 million bags. Small offers in Arabica are reported from Brazil. The weather forecasts for Brazil's Coffee areas call for showers. There is a threat of the third year of La Nina which could negatively affect Coffee production again next year. Overall Brazil Coffee exports were less in data released last week. There is concern that Brazil will produce less Coffee this year due to very dry conditions after early rains led to premature flowering. Vietnam has also been dry and wire reports from there indicate that production losses are likely. The cash market remains strong. There is less Coffee on offer from the origin, with Brazil offering less and Central America and Vietnam offering less as well.
Overnight News: ICE-certified stocks are lower today at 0.515 million bags. The ICO daily average price is now 195.68 ct/lb. Brazil will get scattered showers with near to above-normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE NY said that 3 contracts were posted for delivery against September futures and that total deliveries for the month are now 1,523 contracts.
Chart Trends: Trends in New York are mixed. Support is at 216.00, 211.00, and 210.00 December, and resistance is at 226.00, 231.00 and 234.00 December. Trends in London are mixed. Support is at 2200, 2170, and 2150 November, and resistance is at 2260, 2300, and 2350 November.
 

Sugar

General Comments: New York and London closed mostly a little lower yesterday in consolidation trading. New York nearby months were slightly higher. After the close, the Fed announced a 0.75% interest rate increase and the US Dollar was sharply higher yesterday, but Raw Sugar seemed to ignore a lot of that news. White Sugar futures took the biggest hit in the trading. The New York market is worried about ethanol demand in Brazil will force mills down there to continue to produce more Sugar for export and Crude Oil futures have been weaker recently. The Brazilian president has lowered the fuel taxes in Brazil and this is squeezing the profit margins of the mills. The mills could produce much more Sugar over time due to the tax changes. The London market had been looking for increased White Sugar supplies from its origin and now is more worried about demand after recent price strength and because of the loss of economic power generated by the war in Ukraine.
Overnight News: Brazil will get scattered showers. Temperatures should average near to above normal. India will get scattered showers in eastern areas and near to below-normal temperatures.
Chart Trends: Trends in New York are mixed. Support is at 1760, 1720, and 1690 March and resistance is at 1790, 1830, and 1850 March. Trends in London are down with objectives of 410.00 and 485.00 December. Support is at 517.00, 500.00, and 490.00 December and resistance is at 531.00, 534.00, and 543.00 December.
 

Cocoa

General Comments: New York was lower and London was mixed again yesterday as consolidation trading continued. There does not seem to be anything going on to push prices in one direction or the other. Ideas of big production and uncertain demand are still around but reports from Africa indicate that demand has improved lately. Trends are mixed in New York. Reports indicate that buyers of Cocoa have enough coverage for now and can afford to wait for lower prices to develop. Supplies of Cocoa are as large as they will be now for the rest of the marketing year. Reports of scattered showers along with very good soil moisture from showers keep big production ideas alive in Ivory Coast. Ideas are still that good production is expected from West Africa for the year. The weather is good for harvest activities in West Africa but the harvest should be winding down now. The weather is good in Southeast Asia.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near-normal temperatures. ICE-certified stocks are lower today at 5.633 million bags.
Chart Trends: Trends in New York are mixed. Support is at 2320, 2300, and 2280 December, with resistance at 2390, 2400, and 2430 December. Trends in London are mixed to up with objectives of 1880 and 1920 December. Support is at 1860, 1840, and 1820 December, with resistance at 1900, 1920, and 1970 December.

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