COTTON
General Comments: Cotton was higher in response to the USDA reports that showed less planted and harvest acres and less yield than trade expectations. The supply side of the reports was bullish for the trade. Demand was cut, but not as much as production and ending stocks were lower. It looks like futures are cheap enough for now but speculators see no reason to buy except to cover short positions. The Delta should have the best looking crops right now, but crops in other areas are more suspect. Demand has been weaker so far this year but there are hopes for improved demand with the lower prices.
Overnight News:
Chart Trends: Trends in Cotton are mixed. Support is at 66.40, 65.20, and 64.60 December, with resistance of 70.80, 73.00 and 73.70 December.

FCOJ
General Comments: FCOJ closed higher yesterday on forecasts for more tropical activity in the near future in the Atlantic. Nothing appeared threatening in the forecasts for this week, but next week could be different. A very active year is forecast and there have been some reports of flooding in the state even with no huge storms. The market remains well supported in the longer term based on forecasts for tight supplies and very hot weather in Florida. The reduced production also 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.
Overnight News:
Chart Trends: Trends in FCOJ are mixed. Support is at 415.00, 410.00, and 393.00 September, with resistance at 454.00, 467.00, and 471.00 September.

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COFFEE
General Comments: New York and London closed higher after starting the day much higher as offers of Indonesian Robusta and Conillon from Brazil increased with the harvest there of the robusta starting to wind down. It was an impressive session. Reports of better rains in Vietnam and Brazil recently were important but reports indicate that Brazil is turning dry again. There are still reports of short supplies that could be made worse by ideas of reduced offers of Robusta are still in the market. Offers from Vietnam are reported to be down significantly and the current crop in Brazil along with the next crop in Vietnam s reported to be smaller. The weather forecasters now say that conditions are good in Vietnam, but damage was done to crops earlier in the growing season. There were also reports of poor Robusta yields in Brazil during the harvest due to small bean sizes. Arabica yields in Brazil and Colombia are reported to be less this year due to extreme weather in both countries.
Overnight News: The ICO daily average price is now 236.51 ct/lb.
Chart Trends: Trends in New York are mixed. Support is at 230.00, 228.00, and 225.00 September, and resistance is at 252.00, 255.00 and 261.00 September. Trends in London are mixed. Support is at 4320, 4190, and 4070 September, with resistance at 4630, 4680, and 4740 September.

SUGAR
General Comments: New York and London closed lower yesterday after a rally late last week tied to news that India will not permit exports of Sugar. Harvest progress in Brazil and improved growing conditions in India and Thailand are the important fundamentals and growing conditions are turning drier in Brazil. Indian and Thai monsoon rains have been very beneficial and mills are expecting strong crops of cane. They are pushing the governments to allow exports but so far the governments have not agreed. Production estimates were raised in the northern hemisphere. Harvest yields of Sugarcane in Brazil are improving. There are still ideas that the Brazil harvest can be strong for the next few weeks amid dry harvest weather. Harvest weather is called good in center-south Brazil.
Overnight News:
Chart Trends: Trends in New York are mixed. Support is at 1770, 1740, and 1710 October and resistance is at 1890, 1910, and 1950 October. Trends in London are mixed to down with no objectives. Support is at 504.00, 498.00, and 492.00 October, with resistance at 533.00, 538.00, and 544.00 October.

COCOA
General Comments: New York and London closed lower as tight supply conditions and reports of good demand are still around, but as prospects for the next crops are called good. The weather for the next crop is still improved as weather reports indicate it is raining in Ivory Coast and Ghana right now. However, it appears that drier weather is coming and this is causing concerns about the next production. The current rains can help production of the next crop but have also created disease concerns about the pods. Production concerns in West Africa as well as demand from nontraditional sources along with traditional buyers keep supporting futures, but this support is running its course and the market is searching for a new bullish fundamental. 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, but surplus production against demand is expected in the next crop year.
Overnight News:
Chart Trends: Trends in New York are mixed to up with no objectives. Support is at 8000, 7690, and 7340 September, with resistance at 9540, 9800, and 10310 September. Trends in London are mixed. Support is at 6290, 5880, and 5820 September, with resistance at 6880, 7080, and 7320 September.

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