Softs Report - Wednesday, Feb. 24

General Comments:  New York closed higher and London closed lower in consolidation trading. The trends in both markets are mostly up. 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. 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.

Chart Trends: Trends in New York are up with objectives of 1770 and 1830 May. Support is at 1670, 1610, and 1580 May, and resistance is at 1750, 1780, and 1810 May. Trends in London are mixed to up with no objectives. Support is at 475.00, 461.00, and 458.00 May, and resistance is at 490.00, 494.00, and 500.00 May.

COCOA              

General Comments:  New York and London closed higher on inflation concerns once again. The fundamentals appear to be bearish. The ICCO said that the Cocoa surplus would be about 100,000 tons this year. Ivory Coast raised its main crop production estimate by 100,000 tons to 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. Ivory Coast has not been shipping as exporters have asked to hold off. There are ideas of big supplies at origin. Wire reports say that Ivory Coast has abandoned its tax scheme and instead is offering a discount to get Cocoa moving again. Ivory Coast arrivals are now 1.491 million tons, down 1.3% 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 mostly dry conditions and near to above normal temperatures. ICE-certified stocks are higher today at 3.582 million bags.ICE said that 0 contracts were delivered against March futures and that total deliveries for the month are now 62 contracts.

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Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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