Softs Report - Tuesday, July 20

SUGAR
General Comments: New York and London were lower on demand concerns caused by the sharply weaker US stock markets and the drop in Crude Oil. Reports of damaged can in Brazil from the recent cold snap were heard and pictures of the damaged were tweeted. Brazil temperatures have moderated. Mills were also processing for more Ethanol and less for Sugar than expected and this trend should continue even with weaker world petroleum prices. London has been the leader to the downside on ample supplies of White Sugar available to the market and as demand for White Sugar is less. There is plenty of White Sugar available in India for the market and monsoon rains are promoting good conditions for the next crop. The Indians are selling with or without a subsidy from the government. Thailand is expecting improved production. Sugar demand is said to be weak. Ethanol demand is returning to the market as more world economies open up after the pandemic.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends: Trends in New York are mixed. Support is at 1670, 1640, and 1610 October, and resistance is at 1780, 1790, and 1820 October. Trends in London are mixed. Support is at 447.00, 440.00, and 436.00 October, and resistance is at 452.00, 455.00, and 466.00 October.

COCOA
General Comments: New York and London closed lower again yesterday on demand concerns. The return of Covid around the world hurt demand ideas as world economies could suffer again. The European grind data was released early last week and showed a strong recovery from the Covid times. Asian data was released on Friday and also showed increased demand, although not as much of an increase than showed for Europe. The daily charts show short-term mixed trends in New York and in London and the fundamentals remain bearish despite the increased demand. Ports in West Africa are filled with Cocoa right now. The weather has had above-average rains in West Africa and crop conditions are rated good.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be above normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near to above normal temperatures. ICE-certified stocks are lower today at 5.804 million bags. ICE said that 0 contracts were posted for July delivery and that total deliveries for the month are now 271 contracts.
Chart Trends: Trends in New York are down with objectives of 2200 September. Support is at 2240, 2210, and 2180 September, with resistance at 2310, 2350, and 2370 September. Trends in London are down with objectives of 1500 September. Support is at 1510, 1480, and 1450 September, with resistance at 1630, 1660, and 1670 September.

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