Photo by EVGENIY KONEV on Unsplash
 

Cotton

General Comments: Cotton was sharply lower to limit down yesterday on fund selling tied to recession fears here and around the globe as well as news from Bloomberg that Chinese Cotton imports will be less this year due to the Covid lockdowns seen there. The Chinese had been reopening the economy and country lately as Covid faded, but some reports of a new variant found there could shut the country down again in the near term. Current weather forecasts call for hot and dry conditions for much of the Great Plains including the west Texas Cotton area. There have been showers in the region lately to improve conditions and that kept the market pinned lower. The price action yesterday was a disappointment for the bullish traders. There continues to be the talk of a big recession here in the US and around the world. Traders worry that the continued Chinese lockdowns will hurt demand for imported Cotton for that country and that a weaker economy in the west will hurt demand from the rest of the world. There are forecasts for hot and dry weather to return this week after some showers in West Texas and the rest of the Great Plains over the last couple of weeks. The Indian weather is cooler and wetter and conditions appear good. Chinese demand could become less due to the Covid lockdowns there be trimming imports due to Covid and has closed a number of cities as Covid spreads through the nation. The cities and ports are shut down again.
Overnight News: The Delta will get isolated showers and near to above normal temperatures and the Southeast will get scattered showers and near normal temperatures. Texas will have isolated showers and above-normal temperatures. The USDA average price is now 107.09 ct/lb. ICE said that certified stocks are now 18,660 bales, from 17,716 bales yesterday. ICE NY said that 0 notices were posted for delivery against July contracts and those total deliveries for the month are now 179 contracts.
Chart Trends: Trends in Cotton are down with objectives of 8590 and 7710 December. Support is at 88.10, 87.60, and 85.10 December, with the resistance of 96.70, 99.50, and 100.80 December.
 

FCOJ

General Comments: FCOJ was lower yesterday on fund selling tied to fears of a global recession and as USDA increased production potential in its reports released yesterday during the session. Production is still down from previous years gut has been creeping higher in recent USDA reports. Trends are mixed on the daily and weekly charts. The recent market weakness has been dramatic since the market made new contract highs earlier this month. The weather remains generally good for production around the world for the next crop. Brazil has some rain and the conditions are rated good. Weather conditions in Florida are rated mostly good for the crops with some showers and warm temperatures.
Overnight News: Florida should get isolated to scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near to above normal temperatures. ICE said that 0 contracts were posted for delivery against July futures and those total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are down with objectives of 152.00 and 144.00 September. Support is at 155.00, 149.00, and 145.00 September, with resistance at 162.00, 166.00, and 170.00 September.
 

Coffee

General Comments: New York and London closed lower again yesterday with the biggest losses seen in New York. Trends are still down on the daily charts in New York and are still mixed in London. The funds were the best sellers and once again were worried about a recession forming here and around the world.. Futures remain rather cheap when compared to the cash market and certified stocks keep dropping. That news has not been enough to keep futures from sliding at this time. Demand for Coffee overall is thought to be less as the world economic situation changes for the worse but the strong cash market means that even less Coffee is on offer. There is less Coffee on offer from the origin, with Brazil offering less and Central America and Vietnam offering less as well. The weather in Brazil is good for Coffee production. Temperatures are near to above normal in Brazil and there are no forecasts for frosts or freezes in the short term.
Overnight News: ICE-certified stocks are lower today at 0.769 million bags. The ICO daily average price is now 185.91 ct/lb. Brazil will get mostly dry conditions with above-normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers. ICE NY said that 0 contracts were tendered for delivery against July futures and those total deliveries for the month are 73 contracts.
Chart Trends: Trends in New York are down with no objectives. Support is at 204.00, 202.00, and 197.00 September, and resistance is at 211.00, 218.00, and 220.00 September. Trends in London are mixed. Support is at 1940, 1910, and 1890 September, and resistance is at 1990, 2000, and 2020 September.
 

Sugar

General Comments: New York and London closed lower yesterday as funds sold on worries about a recession forming and weakness in Crude Oil's future. Trends are still sideways to up in New York and in London. White Sugar supplies and production are short right now. India is reported to have a big crop of Sugarcane coming and Brazil is harvesting its crop of Sugarcane and turning much of it into Ethanol but is still making some Sugar and some of that Sugar is making it into export channels. Thailand is still offering and exporting. Reports from India indicated that conditions are generally good for Sugar production. The Indian weather service is predicting a normal monsoon season this year.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average above normal. India will get isolated showers in eastern areas and near to above normal temperatures.
Chart Trends: Trends in New York are mixed up with objectives of 1940, 2020, and 2200 October. Support is at 1850, 1820, and 1800 October, and resistance is at 1910, 1960, and 1990 October. Trends in London are mixed up with objectives of 549.00, 560.99, and 578.00 October. Support is at 534.00, 526.00, and 519.00 October, and resistance is at 545.00, 549.00, and 553.00 October.
 

Cocoa

General Comments: New York was lower and London was higher yesterday and trends are sideways in New York and in London. The price action was related to currency moves yesterday. Reports of sun and dry weather along with very good soil moisture keep big production ideas alive on Ivory Coast. Some rains were reported last week. Ideas are still that good production is expected from West Africa for the year. The weather is good for harvest activities in West Africa. Current reports from Ivory Coast indicate that the weather is a good mix of sun and rain so good mid-crop production is expected. The weather is good in Southeast Asia.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near normal temperatures. ICE-certified stocks are lower today at 5.541 million bags. ICE NY said that 0 contracts were posted for delivery against July contracts and those total deliveries for the month are now 2,411 contracts.
Chart Trends: Trends in New York are mixed. Support is at 2320, 2280, and 2260 September, with resistance at 2400, 2430, and 2470 September. Trends in London are mixed. Support is at 1730, 1710, and 1690 September, with resistance at 1780, 1790, and 1810 September.

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