COTTON
General Comments: Cotton closed higher yesterday on some short covering to start the week. Ideas of weaker demand due to economic problems in Asia and improved production prospects here at home continue. The weather has improved in Texas and most growing areas are in good condition. The US Dollar was sharply lower and still in a down trend and there are still many concerns about demand from China and the rest of Asia. Forecasts for showers are still showing in forecasts for West Texas to Oklahoma and Kansas and are expected to be beneficial. Ideas are that the world economic problems were fading into the background as the US stock market has held strong and as the Chinese economy gets better after all of the Covid lockdowns.
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 normal temperatures. The USDA average price is now 77.28 ct/lb. ICE daily certified stocks are now 20,946 bales, from 20,267 bales yesterday.
Chart Trends: Trends in Cotton are down with no objectives. Support is at 80.50, 79.90, and 79.50 July, with resistance of 82.00, 82.60 and 84.50 July.

Photo by Karl Wiggers on Unsplash

FCOJ
General Comments: FCOJ closed higher yesterday and trends turned up on the charts. Futures remain supported by very short Oranges production estimates for Florida. 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. The latest Florda Movement nd Pack report showed that inventories are now 40% less than last year.
Overnight News: Florida should get isolated showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are mixed to up with objectives of 268.00 and 278.00 July. Support is at 258.00, 253.00, and 249.00 July, with resistance at 270.00, 280.00, and 290.00 July.

COFFEE
General Comments: Both markets closed lower yesterday on increasing export volumes from Brazil and as traders were more concerned about a lack of fresh coffee from Vietnam available to the market right now. The US Dollar was a little stronger and the Real was weaker. Trends are still down for the Dollar. Brazil offers are starting to increase. There are reports of good rains and dry weather mixed in for Arabica production in Brazil with high production expectations. The Arabica harvest has started and offers of Arabica from Brazil are increasing. 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 some of the demand. Producers in Vietnam and 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 down side movement. Southeast and south Asian producers could see another tough production year this year due to the effects of El Nino.
Overnight News: ICE certified stocks are lower today at 0.541 million bags. The ICO daily average price is now 172.62 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.
Chart Trends: Trends in New York are down with objectives of 176.00, 169.00, and 149.00 July. Support is at 176.00, 171.00, and 168.00 July, and resistance is at 181.00, 185.00 and 189.00 July. Trends in London are mixed. Support is at 2730, 2670, and 2610 July, with resistance at 2850, 2880, and 2910 July.

SUGAR
General Comments: Both markets were higher again yesterday on tight world supplies and despite news reports that Brazil production increased in the last half month. The Brazil production is apparently not enough to change the narrative of tight world supplies. India will restrict imports until the first half of next year. The current year export quota is already gone and the government has no plans to allow for additional exports at this time. The market is still hurt by good growing and harvesting conditions in Brazil but supported by tight current supplies. The production is not there to meet the demand in many countries, with only Brazil among the major producers looking to have a good crop. Indian production is less this year and Pakistan also has reduced production. Thailand also has a smaller crop. Asian countries could face another year of short production as El Nino returns after years of La Nina. European production is expected to be reduced again this year. Chinese production could be the lowest in six years due to bad growing conditions.
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 to up with objective of 2640 and 2740 October. Support is at 2500, 2470, and 2550 October and resistance is at 2640, 2670, and 2700 October. Trends in London are mixed to up with objectives of 714.00 and 735.00 October. Support is at 684.00, 670,00, and 661.00 October, with resistance at 706.00, 708.00, and 715.00 October.

COCOA
General Comments: Both markets closed lower yesterday on ideas that the futures markets had become overbought. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast 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 strong due to rain mixed with some sun recently reported in Cocoa areas of the country.
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 higher today at 5.612 million bags.
Chart Trends: Trends in New York are mixed to down with objectives of 2930, 2870, and 2820 July. Support is at 3130, 3090, and 3050 July, with resistance at 3170, 3230, and 3270 July. Trends in London are mixed. Support is at 2550, 2470, and 2440 July, with resistance at 2620, 2650, and 2680 July.

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