COTTON
General Comments: Cotton closed lower. Signs of a deteriorating economy in the US and around the world during the Coronavirus epidemic hurt prices. USDA showed decreased crop condition and that should help futures rebound today. There is concern that China will stop fulfilling its obligations in the Phase One trade deal due to ramped-up US rhetoric on the Chinese response to the Coronavirus epidemic and now the unrest in Hong Kong. The world is starting to slowly recover from the Coronavirus scare and some stores are starting to open again after being closed for weeks. The retail demand has been slow to develop as many consumers got hurt economically due to stay at home orders during the height of the pandemic and have little disposable funds to spend on clothes. Demand will slowly improve but the industry should have plenty of supplies to work within the short term. The US weather situation is mixed, with good rains noted in the Southeast and good conditions in the Midsouth. However, it has been very hot and dry in West Texas, and crops there are suffering.
Overnight News: The Delta will get mostly dry conditions and Southeast will get showers in eastern areas, otherwise dry conditions. Temperatures should be mostly above normal in the Delta and near to above normal in the Southeast. Texas will have dry conditions or isolated showers. Temperatures will average near to above normal. The USDA average price is now 54.47 ct/lb. ICE said that certified stocks are now 31,799 bales, from 32,435 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 5730, 5710, and 5680 July, with resistance of 6060, 6110, and 6210 July.

FCOJ
General Comments: FCOJ was lower on follow through speculative and commercial selling. The selling came for chart based reasons as futures were unable to take out recent highs even though USDA released reduced production estimates for US production. Florida production is now estimated at less than 68 million boxes. Support is coming from the continued effects from the Coronavirus that are keeping people at home and drinking Orange Juice. Demand from grocery stores has remained strong in response to the increased consumer demand. Inventories in cold storage remain solid so there will be FCOJ to meet the demand. There is increasing concern about the foodservice demand not improving even with the partial opening of the states. The weather in Florida is currently good for the crops. Southern areas are cooler and have seen more frequent showers. The tree condition is called good. The Valencia harvest is in full swing. Brazil has been dry and irrigation has been used.
Overnight News: Florida should get periods of showers in all areas today and in southern areas for much of the week. Temperatures will average near to below normal. Brazil should get dry conditions and near to below normal temperatures.
Chart Trends: Trends in FCOJ are down with objectives of 115.00 and 105.00 July. Support is at 117.00, 115.00, and 112.00 July, with resistance at 120.00, 125.00, and 129.00 July.

COFFEE
General Comments: Futures were lower in both New York and London as the Brazil harvest is underway and starting to expand. The Brazilian Real was weaker. Ideas are that production will be very strong this year as it is the on year for the trees. The strong production ideas are coming despite hot and dry weather seen in the country at flowering time. Vietnam also had hot and dry weather at flowering time and production ideas there are less than original expectations of a bumper crop. The logistics of moving Coffee from Central and South America remain difficult. Producers have had trouble getting workers to pick the cherries and mills and processors have had trouble getting workers to staff the plants. Shipping logistics have improved somewhat, but many are still having trouble getting the Coffee to ports to move to consumer nations. Indonesian producers are more active sellers.
Overnight News: ICE certified stocks are lower today at 1.667 million bags. GCA stocks are now 6.818 million bags, from 6.517 million last month. The ICO daily average price is now 97.75 ct/lb. Brazil will get some isolated showers with above normal temperatures. Vietnam will see light to moderate showers.
Chart Trends: Trends in New York are mixed to down with objectives of 91.00 and 86.00 July. Support is at 92.00, 89.00, and 86.00 July, and resistance is at 95.00, 98.00, and 100.00 July. Trends in London are mixed. Support is at 1150, 1130, and 1080 July, and resistance is at 1200, 1230, and 1260 July.

SUGAR
General Comments: New York was mixed and London closed lower on ideas that the Coronavirus could come back and shut down world economies again. There were reports of less consumption in the last quarter and less consumption is feared moving forward. Brazil mills are currently producing about 48% Sugar from the cane crush, from about 33% a year ago. The overall crash rate is below the year-ago levels. Reports indicate that little is on offer from India in part due to logistical and harvest problems caused by the Coronavirus. India is thought to have a very big crop of Sugarcane this year but getting it into Sugar and into export position has become extremely difficult. Thailand might also have less this year due to reduced planted area and erratic rains during the monsoon season. There are reduced flows from rivers from China as well.
Overnight News: Brazil will get a dry week. Temperatures should average above normal.
Chart Trends: Trends in New York are mixed to down with objectives of 1150 and 1100 October. Support is at 1170, 1130, and 1120 October, and resistance is at 1240, 1260, and 1290 October. Trends in London are mixed to down with objectives of 371.00 and 355.00 August. Support is at 374.00, 370.00, and 363.00 August, and resistance is at 398.00, 400.00, and 405.00 August.

COCOA
General Comments: New York and London closed lower. There are a lot of demand worries as the Coronavirus is not going away and could be making a comeback in the US. Harvest is now over for the main crop in West Africa and the results so far are very good. The reports from West Africa imply that a big harvest in the region. However, the Midcrop could be less due to dry weather earlier in the season. Arrivals are on a pace about the same as last year. Ideas are that Southeast Asia also has good crops.
Overnight News: Isolated to scattered showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get mostly dry conditions and above normal temperatures. ICE certified stocks are lower today at 4.227 million bags. The midcrop is looking at good weather conditions in West Africa.
Overnight News:
Chart Trends: Trends in New York are mixed to down with objectives of 2310, 2090, and 2040 July. Support is at 2310, 2280, and 2260 July, with resistance at 2400, 2450, and 2540 July. Trends in London are mixed. Support is at 1830, 1810, and 1790 July, with resistance at 1890, 1910, and 1940 July.