Photo by Jason Leung on Unsplash

COTTON        

General Comments: Cotton futures closed higher and the market remains in a short term trading range before the USDA reports that will be released later today.  It’s been a demand market and prices have been sideways waiting for demand to catch up to the price.  Ideas are that demand remains strong for US Cotton even with the weaker export sales reports over the last couple of weeks.  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 scattered showers and near to below normal temperatures.  Texas will have mostly dry conditions and near to above normal temperatures.  The USDA average price is now 112.70 ct/lb.  ICE said that certified stocks are now 617 bales, from 617 bales yesterday.

Chart Trends: Trends in Cotton are up with objectives of 12010 March.  Support is at 11450, 11270, and 10980 March, with resistance of 11760, 11830 and 11960 March.

FCOJ 

General Comments: FCOJ was higher and trends are now up on the daily charts.  The freeze season is coming to Florida but the weather remains generally good for production in Florida and 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.

Overnight News: Florida should get isolated showers.  Temperatures will average near normal.   Brazil should get scattered showers and near normal temperatures.  ICE said that 0 notices were posted for FCOJ for January delivery and that total deliveries for the month are now 0 contracts.

Chart Trends: Trends in FCOJ are up with objectives of 148.00, 150.00, and 153.00 March.  Support is at 143.00, 140.00, and 137.00 March, with resistance at 149.00, 152.00, and 155.00 March.

COFFEE   

General Comments: New York and London closed higher yesterday 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.  Big rains more recently in some Brazil growing areas have hurt cherry formation as well.  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 but the harvest is now about 90% complete.  Vietnam is getting scattered showers on the coast but dry conditions inland.  The rest of Southeast Asia should get scattered showers in the islands and mostly dry conditions on the mainland.  Production conditions for the next crop in Colombia are not good.

Overnight News: ICE certified stocks are lower today at 1.459 million bags.  The ICO daily average price is now 206.52 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 up with objectives of 256.00 March.  Support is at 232.00, 227.00, and 225.00 March, and resistance is at 243.00, 248.00 and 252.00 March.  Trends in London are mixed to down with objectives of 2240 March.   Support is at 2240, 2210, and 2180 March, and resistance is at 2280, 2300, and 2320 March[JS1] .

SUGAR                 

General Comments: New York and London were higher yesterday as the speculative selling dried up. The selling had been in response to reports of improved growing conditions for the crops in central-south areas of Brazil.  Sugar crops in these areas got a lot of help from the recent rains but many of these areas are drier again.  More showers are in the forecast for central south areas this week and crops should benefit from the return of moisture to the region.  Ideas are that the supplies are available from India and Thailand as harvests there are off to a good start but it will take a stronger price to get them into the market.  Trends remain down in the market, but prices have reached objectives for now and could bounce higher in the very short term.

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

Chart Trends: Trends in New York are down with no objectives.  Support is at 1750, 1720, and 1680 March and resistance is at 1850, 1880, and 1910 March.  Trends in London are down with no objectives.  Support is at 483.00, 477.00, and 474.00 March and resistance is at 492.00, 495.00, and 500.00 March.

COCOA                                                                                   

General Comments: New York and London were both higher on ideas of better demand as the weather is generally good for West Africa and Southeast Asia.  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.  Ivory Coast said that it has ground 52,000 tons of Cocoa in December, up 2% from last year.  Year to date arrivals in Ivory Coast are now 6.4% below last year.  Fourth quarter grind data from Europe, North America, and Asia will be released next week.   Trends are starting to turn up in these markets.

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 a little lower today at 4.634 million bags.

Chart Trends: Trends in New York are mixed to up with objectives of 2610, 2620, and 2680 March.  Support is at 2510, 2480, and 2450 March, with resistance at 2600, 2630, and 2650 March.  Trends in London are mixed to up with objectives of 1740 and 1780 March.  Support is at 1680, 1650, and 1620 March, with resistance at 1730, 1740, and 1770 March.