COTTON
General Comments: Cotton closed higher again yesterday, partly in sympathy with the weather rally seen in the grains markets early in the week and on its own weather rally as very hot and dry weather returned to Texas and the Southwest. The heat has been extreme. Ideas of weaker demand due to economic problems in Asia and improved production prospects here at home continue but hopes for improved Chinese economic data are still around. There are still many concerns about demand from China and the rest of Asia due to the slow economic return of China in the world market and as China is trying not to buy from the US. There are also worries developing that the US could be moving into a mild recession after many months of superlative growth. Forecasts for showers are still showing in forecasts for West Texas to Oklahoma and Kansas and are expected to be beneficial. Showers are also forecast for the Delta and Southeast.
Overnight News: The Delta will get isolated showers and above normal temperatures. The Southeast will see isolated showers and near to above normal temperatures. Texas will have scattered showers and near to above normal temperatures. The USDA average price is now 80.22 ct/lb. ICE daily certified stocks are now 4,727 bales, from 4,727 bales yesterday.
Chart Trends: Trends in Cotton are up with objectives of 8700 December. Support is at 84.00, 83.20, and 82.50 December, with resistance of 85.80, 86.00 and 86.50 December.

Image Source: Pixabay

FCOJ
General Comments: FCOJ closed higher again yesterday, and the trends are up on the daily charts. Futures remain supported by very short Oranges production estimates for Florida but might have factored in the production losses into the current prices. Historically low estimates of production due in part to the hurricanes and in part to the greening disease that have hurt production, but conditions are significantly better now with scattered showers and moderate temperatures. The weather remains generally good for product around the world for the next crop including production areas in Florida that have been impacted in a big way by the two storms seen previously in the state. Brazil has some rain and conditions are rated good.
Overnight News: Florida should get isolated showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near to above normal temperatures. ICE said that 161 notices were posted for delivery against July futures and that total deliveries for the month are now 161 contracts.
Chart Trends: Trends in FCOJ are up with no objectives. Support is at 291.00, 281.00, and 277.00 September, with resistance at 310.00, 316.00, and 322.00 September.

COFFEE
General Comments: New York and London closed higher yesterday as the market looks for supplies from Brazil and Asia. The origins are not offering much, even Brazil with its harvest moving quickly along. Vietnam is not offering at all into the world market as domestic cash prices are very high. The Brazil harvest is moving quickly along, but the lower prices have forced Brazil producers to store Coffee instead of selling. Ideas are that roaster demand is improving with more Coffee seen in the market now. There are reports of dry weather for the harvest in Arabica production in Brazil with high production expectations. There are still tight Robusta supplies for the market amid strong demand for Robusta with no offers from Vietnam in the world market due to very high domestic prices. Producers in Indonesia are said to have almost nothing left to sell. Central America is featuring Coffee offered with very high differentials. The market really needs big offers from Brazil to sustain any downside movement.
Overnight News: ICE certified stocks are lower today at 0.532 million bags. The ICO daily average price is now 162.40 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Central America will get mostly dry conditions. Vietnam will see scattered showers.
Chart Trends: Trends in New York are mixed to up with objectives of 171.00 and 180.00 September. Support is at 162.00, 157.00, and 155.00 September, and resistance is at 168.00, 170.00 and 174.00 September. Trends in London are mixed to up with objectives of 2730 and 2860 September. Support is at 2600, 2550, and 2520 September, with resistance at 2690, 2760, and 2800 September.

SUGAR
General Comments: New York and London closed higher again yesterday as the market still feels short supplies. Brazil production increasing and as the weather in Southeast Asia is currently good for the next crop production prospects so relief could be coming soon. More Sugar is now available to the world market. India still has problems with current and future production potential. The current year export quota is already gone and the government has no plans to allow for additional exports at this time. Indian production is less this year and Pakistan also has reduced production and the monsoon has been uneven so far in both countries. Some areas have remained dry while others have seen too much rain. India announced a higher base price for Sugar paid to farmers to help promote additional planted area.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to below normal. India will get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in New York are up with objectives of 2580 and 2660 October. Support is at 2440, 2400, and 2360 October and resistance is at 2550, 2630, and 2680 October. Trends in London are up with no objectives. Support is at 688.00, 673,00, and 662.00 October, with resistance at 706.00, 708.00, and 715.00 October.

COCOA
General Comments: New York and London closed higher yesterday as ideas of tight supplies continue. The markets are both developing trading ranges now so the lack of Cocoa in the market might be part of the price structure for now. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast and Ghana continue, Talk is that hot and dry conditions reported earlier in Ivory Coast could curtail main crop production, and main crop production ideas are not strong. Midcrop production ideas are lower now with diseases reported in the trees due to too much rain.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average near normal. Brazil will get isolated showers and near to above normal temperatures. ICE certified stocks are lower today at 5.425 million bags.
Chart Trends: Trends in New York are mixed. Support is at 3360, 3320, and 3260 September, with resistance at 3440, 3470, and 3500 September. Trends in London are mixed to up with no objectives. Support is at 2530, 2510, and 2490 September, with resistance at 2590, 2620, and 2650 September.

More By This Author:

Grains Report - Monday, July 24
Softs Report - Friday, July 21
Grains Report - Thursday, July 20