Softs Report - Wednesday, June 16

General Comments: Futures were a little higher. Trends are still mostly up on the daily charts. Cotton growing conditions have improved with rains reported in West Texas and the Delta. West Texas and the Delta are now too wet, but are expected to dry down a bit this week. It is dry in the southeast, but some very beneficial rains are in the forecast for late this week or this weekend. Production ideas are being impacted in just about all areas due to the weather extremes. Cotton demand remains solid although weaker this week.
Overnight News: The Delta will get mostly dry conditions and near to below normal temperatures and Southeast will get scattered to isolated showers and near-normal temperatures. Texas will have mostly dry conditions and near to above normal temperatures. The USDA average price is now 81.10 ct/lb. ICE said that certified stocks are now 166,225 bales, from 166,225 bales yesterday.
Chart Trends: Trends in Cotton are mixed. Support is at 8360, 8310, and 8180 July, with resistance of 8590, 8660, and 8740 July.

selective focus photo of plant

Image Source: Unsplash

General Comments: FCOJ closed lower again yesterday and chart trends are still mixed. The move came partly on forecasts from USDA for increased oranges production in Florida and partly on perceptions of good growing conditions in Brazil and Florida. The weather in Florida is good with isolated to scattered showers. The hurricane season is here and a big storm could threaten trees and fruit. The only storm near anything is in the Gulf but too far west to affect the state of Florida. An active season is anticipated but that does not mean a big and damaging storm is coming. It does mean that the market will be on alert if one does show up. It is dry in Brazil and trees and fruit are stressed, but rains are starting to be reported in the region. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. It is dry in northern and western Mexican growing areas but there is some potential for some rains over the next couple of weeks.
Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 113.00, 112.00, and 110.00 July, with resistance at 118.00, 120.00, and 122.00 July.

General Comments: New York was lower on reports of rains in Brazil Coffee areas and on forecasts for more in the coming days. London was a little higher. Wetter conditions are in the forecast for these areas this week. The daily charts show downtrends. Good conditions are reported in northern South America and improved conditions reported in Central America. Colombia is having trouble exporting Coffee right now due to protests inside the country. Conditions are reported to be generally good in Asia and Africa.
Overnight News: ICE-certified stocks are higher today at 2.137 million bags. GCA stocks are now 5.815 million bags, from 5.762 million last month. The ICO daily average price is now 136.45 ct/lb. Brazil will get mostly dry conditions or isolated showers with near to above normal temperatures. Central America will get scattered showers. Vietnam will see scattered showers.
Chart Trends: Trends in New York are down with objectives of 146.00, 140.00, and 135.00 July. Support is at 150.00, 146.00, and 143.00 July, and resistance is at 155.00, 157.00, and 159.00 July. Trends in London are mixed to down with objectives of 1470, 1460, and 1360 July. Support is at 1560, 1530, and 1520 July, and resistance is at 1600, 1620, and 1690 July.

General Comments: New York and London were lower on ample supplies of White Sugar available to the market and forecasts for improved growing conditions in Brazil. There is plenty of White Sugar available in India for the market and monsoon rains are promoting good conditions for the next crop. Southern growing areas of Brazil are getting some beneficial rains, with Parana and parts of Sao Paulo getting the best rains. Production has been hurt due to dry weather earlier in the year. Thailand is expecting improved production after drought-induced yield losses last year. Ethanol demand is returning to the market as more world economies open up after the pandemic.
Overnight News: Brazil will get mostly dry conditions or isolated showers. Temperatures should average near to above normal.
Chart Trends: Trends in New York are down with objectives of 1690 and 1630 October. Support is at 1710, 1670, and 1640 October, and resistance is at 1760, 1790, and 1820 October. Trends in London are down with objectives of 438.00, 436.00, and 429.00 August. Support is at 429.00, 426.00, and 418.00 August, and resistance is at 455.00, 462.00, and 470.00 August.

General Comments: Both markets closed a little lower in range trading. The daily charts show sideways or downtrends in both markets. The harvests are over in West Africa and ports there have been filled with Cocoa. The weather has been a little too dry for best production prospects for the next crop, but above average rains were reported in West Africa last week. European demand has been slow. Asian demand is improved. North American is improved. The supplies are there for any increased demand.
Overnight News: Isolated showers 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 5.635 million bags.
Chart Trends: Trends in New York are mixed. Support is at 2320, 2280, and 2020 July, with resistance at 2420, 2440, and 2460 July. Trends in London are mixed. Support is at 1600, 1580, and 1560 July, with resistance at 1640, 1720, and 1760 July.

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 ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.