COTTON       

General Comments: Cotton futures closed sharply lower again yesterday on weaker financial and Crude Oil markets tied to Sen Manchin’s statement over the weekend killing the Biden economic plan and the return of Covid with the Omnicron variant. Support is at about 10360 on the weekly charts. Ideas are that demand is strong for US Cotton right now. The weekly export sales report was strong again, but less than last week. The new Covid variant is expected to spread quickly but produce mild reactions but the demand concerns are there as China might buy less now. Chart patterns are now mixed. Analysts say the Asian demand is still very strong and likely hold at high levels for the future.US consumer demand has been very strong as well despite higher prices and inflation. Good US production is expected for next year as planted area is expected to increase due to high cotton prices and the expense of planting Corn.

Overnight News: The Delta and Southeast will get isolated to scattered showers and above normal temperatures. Texas will have mostly dry conditions with isolated showers possible on Friday and above normal temperatures. The USDA average price is now 102.75 ct/lb.ICE said that certified stocks are now 617 bales, from 8,007 bales yesterday.ICE said that 0 notices were posted for delivery against December contracts and that total deliveries for the month are now 78 contracts.

Chart Trends:  Trends in Cotton are mixed to up with objectives of 11190 and 11720 March. Support is at 10350, 10150, and 10040 March, with the resistance of 10980, 11080 and 11350 March.

Photo by Anna Kolosyuk on Unsplash

FCOJ

General Comments: FCOJ was higher last week and trends are up on the weekly charts. The weather remains generally good for production around the world. Brazil has some rain and conditions are rated very good. Brazil production was down last year due to dry conditions at flowering time and then a freeze just before harvest. Weather conditions in Florida are rated mostly good for the crops with a couple of showers and warm temperatures. Mexican crop conditions in central and southern areas are called good with rains. Northern and western Mexico is rated in good condition. The Florida Citrus Movement and Pack report showed that inventories are still almost 16% below last year for this week.

Overnight News:  Florida should get mostly dry conditions. Temperatures will average near normal. Brazil should get scattered showers and near-normal temperatures.

Chart Trends: Trends in FCOJ are up with no objectives. Support is at 135.00, 132.00, and 129.00 January, with resistance at 143.00, 145.00, and 149.00 January.

COFFEE 

General Comments: New York and London closed much lower yesterday after Sen Manchin killed the Biden economic agenda and program and as Omnicron spread through the US and the world and caused some lockdowns and business closings to occur. Damaging weather for Brazil Arabica areas and as the logistical and production problems in Brazil and Vietnam are still around but took a backseat to the outside news..The dry weather and then the freeze in Brazil have created a lot of problems for the trees to form cherries this year. The lack of Coffee available to deliver against contracts remains a factor and the cheapest Coffee for buyers is often at the exchanges. Containers are not available in Vietnam or in Brazil to ship the Coffee. Cherry pickers are hard to find in Vietnam due to Covid problems. The crop there could be damaged if a storm hits the Coffee while it is drying on the patios this week as forecast. The rest os Southeast Asia should get scattered showers and good conditions. Brazil also has limited amounts of Coffee available after bad weather at flowering time and then a freeze before the harvest got underway. Production conditions for the next crop in Colombia are not real good.

Overnight News: ICE certified stocks are little changed today at 1.555 million bags. The ICO daily average price is now 204.09 ct/lb. Brazil will get scattered showers with near-normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE NY said that 0 contracts were tendered against December futures and that total deliveries for the month are now 424 contracts.

Chart Trends: Trends in New York are down with objectives of 214.00 March. Support is at 221.00, 218.00, and 215.00 March, and resistance is at 229.00, 232.00 and 234.00 March. Trends in London are mixed. Support is at 2400, 2350, and 2330 January, and resistance is at 2460, 2490, and 2520 January.

SUGAR               

General Comments: New York and London closed lower yesterday on news that Sen Manchin had killed the Biden economic agenda and program and on the return of the Coronavirus with the Omnicron variant that is causing some closures and despite reports of reduced production from Brazil. Down trends are showing on the daily charts. Weaker production ideas in Brazil were seen again last week as UNICA released its second half of November data. Weaker demand ideas were still being caused by reports of new lockdowns in Europe as the Covid returns there and reports of a new variant discovered in Africa. Some stores and restaurants are closing in the US. However, the effects of the new variant are reported to be mild so the fears were less. Reports indicate that consumer demand has returned to the market. Ideas are that the supplies are out there but it will take a stronger price to get them into the market. Ideas are that Indian producers and exporters are willing sellers above 20.50 cents. Processors in Brazil are refining the cane for Ethanol more than Sugar right now and this trend is expected to continue due to the relative price spreads. The reduced production potential from Brazil for the current harvest is still impacting the market as cane production suffered last season.

Overnight News: Brazil will get scattered showers. Temperatures should average near normal.

Chart Trends: Trends in New York are down with objectives of 1830 and 1730 March. Support is at 1900, 1880, and 1840 March, and resistance is at 1890, 1900, and 1820 March. Trends in London are down with objectives of 485.00 March. Support is at 487.00, 483.00, and 477.00 March, and resistance is at 495.00, 497.00, and 501.00 March.

COCOA

General Comments: New York and London closed lower yesterday as the Omnicron variant of the Covid spreads around the world and causes some business and countries to close doors and as Sen Manchin killed off the Biden economic agenda and programs last night in comments made on TV. Ideas are that demand will only improve slightly if at all and production in West Africa appears to be good this year. Both Ivory Coast and Ghana are reporting improved weather as it is now mostly sunny with some scattered showers around.  Some farmers want more rain for the best Spring harvest results. Cocoa arrivals in Ivory Coast are now 83,000 tons, down 6.4% from last year.

Overnight News: Mostly dry conditions are forecast for West Africa. Temperatures will be near to above normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get scattered showers and near-normal temperatures. ICE certified stocks are lower today at 4.729 million bags.ICE said that 0 notices were posted for delivery against December contracts and that total deliveries for the month are now 1,303 contracts.

Chart Trends: Trends in New York are mixed to down with objectives of 2390, 2300, and 2260 March. Support is at 2420, 2380, and 2330 March, with resistance at 2480, 2500, and 2550 March. Trends in London are mixed to down with objectives of 1660, 1630, and 1610 March. Support is at 1660, 1620, and 1610 March, with resistance at 1700, 1730, and 1740 March.