Softs Report - Tuesday, July 20

General Comments: New York and London closed lower on demand concerns as the return of Covid threatened the world economic recovery. The US stock market was down sharply and some of this selling spilled over into commodities. London remains firm overall on some speculative and commercial buying tied to dry weather in Southeast Asia and on reports that Vietnamese producers were not selling or delivering. New York was higher along with the Brazilian Real as producers there were not willing to sell with the stronger Real. Temperatures are now warmer in Brazil after some very cold temperatures reported over the weekend. It is possible that some more Coffee was lost. There were some losses created by a hot and dry start to the growing season that impacted flowering and initial cherry development and a little Coffee was lost during the freeze event a couple of weeks ago. Asian Coffee areas are dry, especially in Southeast Asia, but increasing showers are coming this week and tree condition should be improved. Good conditions are reported in northern South America and good conditions reported in Central America. Colombia is having trouble exporting Coffee due to protests inside the country. Conditions are reported to be generally good in parts of Asia and parts of Africa.
Overnight News: ICE-certified stocks are lower today at 2.187 million bags. The ICO daily average price is now 144.53 ct/lb. Brazil will get mostly dry conditions with near-normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE said that 0 contracts were posted for delivery today against NY July futures and that total deliveries for the month are now 434 contracts.
Chart Trends: Trends in New York are mixed to up with objectives of 163.00 and 168.00 September. Support is at 155.00, 152.00, and 147.00 September, and resistance is at 162.00, 164.00, and 168.00 September. Trends in London are mixed to up with objectives of 1800 and 1880 September. Support is at 1710, 1690, and 1660 September, and resistance is at 1750, 1780, and 1790 September.

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