Cotton 

General Comments: Futures were higher in response to a stronger US Dollar and a strong weekly export sales report. Demand for US Cotton remains very strong and that is good news for sellers as the strong demand implies strong prices should continue. The demand is expected to be strong from Asian countries as world economies recover from Covid lockdowns. Analysts say the demand is still very strong and likely to hold at high levels for the future. However, the expansion of the Delta variant has given pause to the better demand ideas due to fears of economies here and around the world starting to partially lockdown again. Those fears were magnified yesterday by the debt crisis here and the Evergrande crisis in China. Production ideas are being impacted in just about all areas due to the weather extremes. It has been very hot in parts of Texas and the Delta and Southeast have had drenching rains at various times in the last couple of months. Bolls are opening now so any new system to git the Southeast would have a much better chance to damage the fiber. Good US production totals are expected.

Image Source: Unsplash

Overnight News: The Delta and Southeast will get mostly dry conditions and temperatures trending from below normal to above normal. Texas will have mostly dry conditions and near to above normal temperatures. The USDA average price is now 89.32 ct/lb. ICE said that certified stocks are now 60,107 bales, from 60,107 bales yesterday.

Chart Trends: Trends in Cotton are mixed. Support is at 9070, 9010, and 8890 December, with the resistance of 9200, 9400, and 9510 December.

FCOJ

General Comments: FCOJ closed a little higher after trading both sides of unchanged as weather concerns, especially for Brazil but also for Florida and Mexico, remained important. A freeze hit Sao Paulo state several weeks ago and reports of significant losses are being heard. Weather conditions in Florida are rated mostly good for the crops with scattered showers and near-normal temperatures. Mexican crop conditions in central and southern areas are called good with rains, but earlier dry weather might have hurt production. Northeastern Mexico areas are too dry, but the rest of northern and western Mexico are rated in good condition. Florida is in the middle of the hurricane season but the storms have missed the state so far and crop conditions are good.

Overnight News: Florida should get scattered showers. Temperatures will average near normal. Brazil should get mostly dry conditions and above normal temperatures. ICE said that 0 notices were posted for delivery against September Contracts and that total delivery for the month are now 0 contracts.

Chart Trends: Trends in FCOJ are mixed. Support is at 134.00, 130.00, and 128.00 November, with resistance at 146.00, 149.00, and 150.00 November.

Coffee

General Comments: New York closed much higher and London closed higher yesterday. It remains a bull market on a lack of supplies available from origin. New York has found support from the lack of Coffee available in Brazil after extreme weather events. London is having trouble sourcing Coffee from Vietnam due to a shortage of containers to carry the Coffee out of the country and as the country suffers from a resurgence of the Covid epidemic. Prices in New York have been firm as the current Brazil harvest starts to wind down. Dry weather and warm temperatures are seen now in Brazil for the last of the harvest. Scattered showers are now in the forecast for Southeast Asia. Good conditions are reported in northern South America and good conditions are reported in Central America. Conditions are reported to be generally good in parts of Africa.

Overnight News: ICE-certified stocks are lower today at 2.125 million bags. The ICO daily average price is now 172.16 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 mixed. Support is at 185.00, 182.00, and 178.00 December, and resistance is at 191.00, 194.00, and 201.00 December. Trends in London are mixed to up with objectives of 2250 November. Support is at 2100, 2060, and 2030 November, and resistance is at 2180, 2210, and 2240 November.

Sugar

General Comments: New York and London were both higher yesterday and the trends are turning up on the daily charts. There is still talk of a squeeze developing as the market moves to September expiration. The reduced production potential from Brazil is still impacting the market. India is not offering as world prices are well below domestic prices. The ISO has noted that this will be the second year of deficit production for the world, in large part because of the Brazil freeze that cut production. Consumption of Sugar remains on the light side. Fears that Covid is coming back and could reduce economic activity and demand are still around. Thailand is expecting improved production.

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 mixed to up with objectives of 2040, 2090, and 2120 March. Support is at 1980, 1950, and 1930 March, and resistance is at 2030, 2050, and 2090 March. Trends in London are mixed to up with objectives of 526.00 December. Support is at 508.00, 505.00, and 496.00 December, and resistance is at 520.00, 526.00, and 532.00 December.

Cocoa

General Comments: New York and London closed lower yesterday, but both markets held the weekly range on the charts and trends are still mixed. There are increasing concerns that Ghana will have less production this year. Ghana is the world's second-largest producer behind Ivory Coast. It signed a deal to borrow money for crop financing and export financing for the year. Ivory Coast has stopped selling for the next crop on fears of fewer supplies. World economies are starting to reopen after Covid and the open economies are giving demand the boost. The weather has had below-normal rains in West Africa and crop conditions are rated good for now but there is concern about the lack of rain. Drier weather will be beneficial for the harvest which will be underway soon. Some are forecasting less production in the coming year. Ivory Coast sources told wire services that the country has sold between 1.64 million and 1.66 million tons of Cocoa so far this season. This is considered a very big amount and there are concerns about Cocoa availability at origin moving forward. Cocoa production in Ivory Coast is expected to drop by up to 11% in the 2021/2022 season that starts on Oct. 1 from last year.

Overnight News: Isolated to scattered showers are forecast for West Africa. Temperatures will be 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 lower today at 5.503 million bags.

Chart Trends: Trends in New York are mixed. Support is at 2600, 2580, and 2570 December, with resistance at 2660, 2710, and 2740 December. Trends in London are mixed. Support is at 1800, 1780, and 1740 December, with resistance at 1840, 1850, and 1900 December.