Photo by Tina Guina on Unsplash

Cotton

General Comments: Cotton closed lower again yesterday on some long liquidation by speculators but reports of stressful conditions for US Cotton production continue. Ideas are around that Chinese economic data implies less US cotton demand for the coming year but demand from other buyers has been good. There is more talk of a contraction that could develop in China and Cotton demand could be hurt if people have less money to spend on clothes. The heat is still extreme in the southern US and has yet to moderate. Ideas of weaker demand due to economic problems in Asia continue and Chinese economic data continues to show weakness. 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.

Overnight News: The Delta will get isolated showers and 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 80.89 ct/lb. ICE daily certified stocks are now 2,352 bales, from 2,352 bales yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 86.00, 84.90, and 84.40 December, with resistance of 89.00, 90.00 and 91.20 December.

FCOJ

General Comments: FCOJ closed higher yesterday in range trading. CitrusBR last week estimated stocks were estimated at 84,745 tons for last season. This was the lowest estimate since 2012 when data collection started and stocks were estimated below 100,000 tons. Production for next year is expected to drop a bit due to weather concerns. Futures remain supported by very short Oranges production estimates for Florida. Futures are also being supported in forecasts for an above average hurricane season that could bring a storm to damage the trees once again. 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 products 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

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 September futures and that total deliveries for the month are now 0 contracts.

Chart Trends: Trends in FCOJ are mixed to up with objectives of 356.00 and 382.00 November. Support is at 311.00, 305.00, and 291.00 November, with resistance at 324.00, 333.00, and 338.00 November.

Coffee

General Comments: New York closed higher and London closed a little lower in consolidation trading ith little in the way of news to affect prices one way or the other. Offers from Brazil and other countries in Latin America should be increasing but prices are considered a little cheap to create much selling interest from producers. The Brazil harvest moving quickly and this fact has pressured prices. Vietnam is not offering much Coffee into the world market as domestic cash prices are very high. There are still tight Robusta supplies for the market amid strong demand for Robusta with no offers from Vietnam in the world market due to very high domestic prices.

Overnight News: ICE certified stocks are unchanged today at 0.467 million bags. The ICO daily average price is now 153.39 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 40 contracts were tendered for delivery against September futures and that total deliveries for the month are now 1,038 contracts.
Chart Trends: Trends in New York are mixed. Support is at 147.00, 145.00, and 142.00 December, and resistance is at 158.00, 160.00 and 163.00 December. Trends in London are mixed. Support is at 2420, 2400, and 2350 November, with resistance at 2480, 2530, and 2570 November.

Sugar

General Comments: Both markets closed lower and gave back the gains of yesterday and then went down a little more. The Asian supply situation became more pronounced this week with dry weather the main feature. Traders are more worried about the lack of Sugar exports from India than they are about actual exports from Brazil. The Indian monsoon is expected to withdraw early this year and leave Sugarcane high and dry. There are also worries about the Thai production potential in this year of El Nino. Reports of increased offers from Brazil are still around but other origins are still not offering, and demand is still strong. Brazil reports very good harvest conditions but the weather in Southeast Asia is currently dry. Indian production is less this year and Pakistan also has reduced production and the monsoon has been uneven so far in both countries. Thailand production is also down a lot this year and many Asian countries are worried about El Nino impacting future production.

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 up with objectives of 2770 March. Support is at 2600, 2540, and 2500 March and resistance is at 2740, 2770, and 2800 March. Trends in London are mixed. Support is at 703.00, 693,00, and 690.00 December, with resistance at 737.00, 748.00, and 754.00 December.

Cocoa

General Comments: New York and London closed higher once again yesterday and London closed at new highs for the move. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast and Ghana 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 lower now with diseases reported in the trees due to too much rain that could also affect the main crop production.

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 lower today at 5.148 million bags. ICE NY said that 143 notices were posted for delivery against September futures and that total deliveries for the month are now 942 contracts.

Chart Trends: Trends in New York are up with objectives of 3710 December. Support is at 3570, 3550, and 3490 December, with resistance at 3710, 3740, and 3770 December. Trends in London are up with no objectives. Support is at 2810, 2760, and 2740 December, with resistance at 3000, 3010, and 3040 December.

More By This Author: