Softs Report - Tuesday, 18

General Comments: New York closed a little higher and London closed a little lower as the US Dollar was weaker and the weather in Brazil stays bad. The daily charts show down trends. The current and future Brazil weather is still moving the market. Most if not all areas should stay dry for at least the next week. Fears of dry weather impacting the Brazil production continued to support prices overall. It remains generally dry there and there are still no forecasts for any significant rains in Coffee areas. It was dry at flowering time as well. It is also the off year in the two year production cycle. Production conditions elsewhere in Latin America are mixed with good conditions reported in northern South America and improved conditions reported in Central America. Conditions are reported to be generally good in Asia and Africa. Its turning a little dry in Southeast Asia including Vietnam.
Overnight News: ICE certified stocks are little changed today at 2.020 million bags. The ICO daily average price is now 130.32 ct/lb. Brazil will get mostly dry conditions except for scattered showers today and tomorrow with near to above normal temperatures. Central America will get scattered showers or dry conditions. Vietnam will see scattered showers. ICE said that 48 contracts were tendered for delivery against NY May futures and that total deliveries for the month are now 1.040 contracts.
Chart Trends: Trends in New York are mixed to down with objectives of 140.00 and 132.00 July. Support is at 144.00, 142.00, and 140.00 July, and resistance is at 152.00, 155.00 and 157.00 July. Trends in London are mixed to down with objectives of 1480 and 1440 July. Support is at 1440, 1410, and 1380 July, and resistance is at 1480, 1500, and 1520 July.

General Comments: New York and London were both higher on drought conditions continuing in Brazil. Both markets could still be forming tops on the daily and weekly charts. There is plenty of White Sugar available in India for the market and London has been the weaker market lately. Fears of dry Brazilian weather continued. The primary growing region has been dry in Brazil with little or no rain in the forecast except for Parana. Production has been hurt due to dry weather earlier in the year. The seasonal crush is off to a slow start and Sugar content of the cane is reduced in initial industry reports from the center-south of Brazil. India is exporting Sugar and is reported to have a big cane crop this year. Thailand is expecting improved production after drought induced yield losses last year. The EU had production problems last year but is expecting much better production this year.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed to down with objectives of 1680, 1580, and 1390 July. Support is at 1660, 1650, and 1610 July, and resistance is at 1740, 1780, and 1800 July. Trends in London are mixed. Support is at 449.00, 447.00, and 439.00 August, and resistance is at 459.00, 466.00, and 470.00 August.

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