Softs Report - Tuesday, March 2

General Comments:  New York was lower and London closed higher and trends are trying to turn down in both markets. Ideas of increased demand are still around as traditional buyers have been active. Rains were reported again in Brazil. It has been raining in south-central Brazil and the production of cane is over for the season. Production has been hurt due to dry weather earlier in the year. India is producing less Sugar and more Ethanol. Growing conditions are called good. Thailand might have less this year due to reduced planted area and erratic rains during the monsoon season. The EU Sugar crop is less this year as is the crop in Russia.

Overnight News: Brazil will get scattered showers. Temperatures should average near normal.ICE said that 17,582 contracts of Sugar were tendered for delivery against July.

Chart Trends: Trends in New York are down with objectives of 1590 and 1510 May. Support is at 1610, 1580, and 1560 May, and resistance is at 1670, 1700, and 1720 May. Trends in London are down with objectives of 451.00, 448.00, and 446.00 May. Support is at 451.00, 446.00, and 440.00 May, and resistance is at 466.00, 477.00, and 485.00 May.


General Comments:  New York and London closed higher once again. The fundamentals appear to be bearish for now but demand is expected to improve as the world economies recover from Covid induced downturns. The ICCO said that the Cocoa surplus would be about 100,000 tons this year. Ivory Coast estimates its main crop production at 1.65 million tons. There were reports of demand for Cocoa in Ivory Coast, although the reports noted that there is a lot to sell there. The grind data has been weaker again implying less demand for chocolate. There are ideas of big supplies at origin.

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 mostly dry conditions and near to above normal temperatures. ICE-certified stocks are higher today at 3.799 million bags.ICE said that 227 contracts were delivered against March futures and that total deliveries for the month are now 389 contracts.

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