COTTON
General Comments: Cotton closed a little higher yesterday in consolidation trading as very hot and dry weather returned to Texas and the Southwest. The heat has been extreme. A steady Dollar supported Cotton futures by helping with demand ideas of the trade. Ideas of weaker demand due to economic problems in Asia and improved production prospects here at home continue but hopes for improved Chinese economic data are around. There are still many concerns about demand from China and the rest of Asia due to the slow economic return of China in the world market and as China is trying not to buy from the US. There are also worries developing that the US could be moving into a mild recession after many months of superlative growth. Forecasts for showers are still showing in forecasts for West Texas to Oklahoma and Kansas and are expected to be beneficial. Showers are also forecast for the Delta and Southeast.
Overnight News: The Delta will get isolated showers and near to above normal temperatures. The Southeast will see isolated showers and near to above normal temperatures. Texas will have scattered showers and near to above normal temperatures. The USDA average price is now 78.49 ct/lb. ICE daily certified stocks are now 4,727 bales, from 4,789 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 81.20, 80.60, and 79.00 December, with resistance of 83.10, 83.30 and 83.90 December.

Image Source: Pixabay

FCOJ
General Comments: FCOJ closed higher again yesterday, and the trends have turned up again on the daily charts. Futures remain supported by very short Oranges production estimates for Florida but might have factored in the production losses into the current prices. Historically low estimates of production due in part to the hurricanes and in part to the greening disease that have hurt production, but conditions are significantly better now with scattered showers and moderate temperatures. The weather remains generally good for production around the world for the next crop including production areas in Florida that have been impacted in a big way by the two storms seen previously in the state. Brazil has some rain and conditions are rated good.
Overnight News: Florida should get isolated showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near to above normal temperatures. ICE said that 0 notices were posted for delivery against July futures and that total deliveries for the month are now 0 contracts.
Chart Trends: Trends in FCOJ are up with objectives of 284.00, 292.00, and 297.00 September. Support is at 273.00, 265.00, and 260.00 September, with resistance at 286.00, 292.00, and 298.00 September.

COFFEE
General Comments: New York and London closed higher yesterday on speculative short covering and in quiet trading. The Brazil harvest is moving quickly along, but the lower prices and a much weaker US Dollar have forced Brazil producers to store Coffee instead of selling as they hope for higher prices and a stronger Dollar later in the year. Ideas are that roaster demand is improving with more Coffee and cheaper prices seen in the market now. There are reports of dry weather for the harvest in Arabica production in Brazil with high production expectations. There are still tight Robusta supplies for the market amid strong demand for Robusta, but the Brazil harvest is in the market now and is expected to take much of the demand. Producers in Indonesia are said to have almost nothing left to sell and producers in Colombia are also reported to be short Coffee to sell. The market really needs big offers from Brazil to sustain any downside movement.
Overnight News: ICE certified stocks are lower today at 0.541 million bags. The ICO daily average price is now 155.86 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Central America will get mostly dry conditions. Vietnam will see scattered showers. ICE NY said that 71 notices were posted for delivery against July contracts and that total deliveries for the month are now 791 contracts.
Chart Trends: Trends in New York are mixed to down with objectives of 151.00 and 144.00 September. Support is at 154.00, 151.00, and 148.00 September, and resistance is at 161.00, 164.00 and 168.00 September. Trends in London are mixed. Support is at 2520, 2480, and 2460 September, with resistance at 2580, 2610, and 2670 September.

SUGAR
General Comments: New York closed a little higher and London closed a little lower yesterday on what appeared to be speculative profit taking amid a steady US Dollar and ideas of increasing offers from Brazil. Brazil production increasing and as the weather in Southeast Asia is currently good for their next crop production prospects so relief could be coming soon. More Sugar is now available to the world market. India still has problems with current and future production potential. The current year export quota is already gone and the government has no plans to allow for additional exports at this time. Indian production is less this year and Pakistan also has reduced production and the monsoon has been uneven so far in both countries. India announced a higher base price for Sugar paid to farmers to help promote additional planted area.
Overnight News: Brazil will get mostly dry conditions. Temperatures should average near to below normal. India will get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in New York are mixed. Support is at 2350, 2310, and 2270 October and resistance is at 2440, 2470, and 2500 October. Trends in London are mixed. Support is at 661.00, 655,00, and 649.00 October, with resistance at 688.00, 706.00, and 708.00 October.

COCOA
General Comments: New York and London closed higher yesterday as ideas of tight supplies continue. The markets are both developing trading ranges now so the lack of Cocoa in the market might be part of the price structure for now. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast and Ghana continue, Talk is that hot and dry conditions reported earlier in Ivory Coast could curtail main crop production, and main crop production ideas are not strong. Midcrop production ideas are lower now with diseases reported in the trees due to too much rain.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average near normal. Brazil will get isolated showers and near to above normal temperatures. ICE certified stocks are lower today at 5.461 million bags.
Chart Trends: Trends in New York are mixed to up with objectives of 3470, 3520, and 3670 September. Support is at 3370, 3320, and 3260 September, with resistance at 3440, 3470, and 3500 September. Trends in London are mixed. Support is at 2490, 2440, and 2400 September, with resistance at 2570, 2590, and 2620 September.

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