COTTON       

General Comments: Cotton futures closed higher yesterday on stronger financial and Crude Oil markets and ideas that the economy will be OK even with no Biden economic plan. Ideas are that demand is strong for US Cotton right now. The weekly export sales report was strong again, but less than last week. The new Covid variant is expected to spread quickly but produce mild reactions but the demand concerns are there as China might buy less now. Chart patterns are now mixed. Analysts say the Asian demand is still very strong and likely hold at high levels for the future.US consumer demand has been very strong as well despite higher prices and inflation. Good US production is expected for next year as planted area is expected to increase due to high Cotton prices and the expense of planting Corn.

Overnight News: The Delta and Southeast will get mostly dry conditions and above normal temperatures.Texas will have mostly dry conditions and above normal temperatures.The USDA average price is now 104.34 ct/lb.ICE said that certified stocks are now 617 bales, from 617 bales yesterday.ICE said that 0 notices were posted for delivery against December contracts and that total deliveries for the month are now 78 contracts.

Chart Trends:  Trends in Cotton are mixed. Support is at 10430, 10350, and 10150 March, with resistance of 10980, 11080 and 11350 March.

Photo by Jason Leung on Unsplash

FCOJ

General Comments: FCOJ was higher yesterday and trends remain up on the charts. The weather remains generally good for production around the world.Brazil has some rain and conditions are rated very good.Brazil production was down last year due to dry conditions at flowering time and then a freeze just before harvest.Weather conditions in Florida are rated mostly good for the crops with a couple of showers and warm temperatures.Mexican crop conditions in central and southern areas are called good with rains. Northern and western Mexico is rated in good condition.The Florida Citrus Movement and Pack report showed that inventories are still almost 16% below last year for last week.

Overnight News:  Florida should get mostly dry conditions.Temperatures will average near normal. Brazil should get scattered showers and near normal temperatures.

Chart Trends:Trends in FCOJ are up with no objectives.Support is at 135.00, 132.00, and 129.00 January, with resistance at 143.00, 145.00, and 149.00 January.

COFFEE 

General Comments: New York and London closed higher yesterday as the market fundamentals returned to importance.Damaging weather for Brazil Arabica areas and as the logistical and production problems in Brazil and Vietnam are still around.The dry weather and then the freeze in Brazil have created a lot of problems for the trees to form cherries this year.The lack of Coffee available to deliver against contracts remains a factor and the cheapest Coffee for buyers is often at the exchanges.Containers are not available in Vietnam or in Brazil to ship the Coffee.Cherry pickers are hard to find in Vietnam due to Covid problems.The crop there could be damaged if a storm hits the Coffee while it is drying on the patios this week and showers are in the forecast to at least delay maturity and drying.The rest of Southeast Asia should get scattered showers.Brazil also has limited amounts of Coffee available after bad weather at flowering time and then a freeze before the harvest got underway.Production conditions for the next crop in Colombia are not real good.

Overnight News:ICE certified stocks are lower today at 1.546 million bags.The ICO daily average price is now 198.38 ct/lb.Brazil will get scattered showers with near normal temperatures.Central America will get scattered showers.Vietnam will see scattered showers.

Chart Trends:Trends in New York are down with objectives of 214.00 March.Support is at 223.00, 221.00, and 218.00 March, and resistance is at 229.00, 232.00 and 234.00 March.Trends in London are mixed. Support is at 2400, 2350, and 2330 January, and resistance is at 2460, 2490, and 2520 January.

SUGAR               

General Comments: New York and London closed higher yesterday in recovery trading and partially on the back of the rallies in the petroleum and financial markets.Down trends are till showing on the daily charts.Weaker production ideas in Brazil were seen again.Weaker demand ideas were still being caused by reports of new lockdowns in Europe as the Covid returns there and reports of a new variant discovered in Africa.Some stores and restaurants are closing in the US.However, the effects of the new variant are reported to be mild so the fears were less.Reports indicate that consumer demand has returned to the market.Ideas are that the supplies are out there but it will take a stronger price to get them into the market.Ideas are that Indian producers and exporters are willing sellers above 20.50 cents.Processors in Brazil are refining the cane for Ethanol more than Sugar right now and this trend is expected to continue due to the relative price spreads.The reduced production potential from Brazil for the current harvest is still impacting the market as cane production suffered last season.

Overnight News:Brazil will get scattered showers.Temperatures should average near normal.

Chart Trends: Trends in New York are down with objectives of 1830 and 1730 March.Support is at 1840, 1800, and 1780 March, and resistance is at 1890, 1900, and 1820 March.Trends in London are down with objectives of 485.00 March.Support is at 487.00, 483.00, and 477.00 March, and resistance is at 495.00, 497.00, and 501.00 March.

COCOA 

General Comments: New York and London closed higher yesterday in recovery trading.Ideas are that demand will only improve slightly if at all and production in West Africa appears to be good this year.Both Ivory Coast and Ghana are reporting improved weather as it is now mostly sunny with some scattered showers around.  Some farmers want more rain for the best Spring harvest results.Cocoa arrivals in Ivory Coast are now 83,000 tons, down 6.4% from last year.

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 scattered showers and near normal temperatures.ICE certified stocks are lower today at 4.711 million bags.ICE said that 0 notices were posted for delivery against December contracts and that total deliveries for the month are now 1,303 contracts.

Chart Trends:Trends in New York are mixed to down with objectives of 2390, 2300, and 2260 March.Support is at 2420, 2380, and 2330 March, with resistance at 2480, 2500, and 2550 March.Trends in London are mixed to down with objectives of 1660, 1630, and 1610 March.Support is at 1660, 1620, and 1610 March, with resistance at 1700, 1730, and 1740 March.