Cotton

General Comments: Futures were higher in recovery trading as the Evergrande problems in China were thought to be overdone yesterday. The world stock markets also recovered and the US Dollar Index was a little lower. More bolls are open now so there is a better chance for damage to or loss of fiber but so far the system has proven to be rather a mild event for Cotton production. 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. Even so, good US production totals are expected.

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Overnight News: The Delta will get isolated showers with some big rains possible in the south and near-normal temperatures and the Southeast will get isolated to scattered showers and near to above normal temperatures. Texas will have isolated showers or dry conditions and above normal temperatures. The USDA average price is now 86.78 ct/lb. ICE said that certified stocks are now 60,976 bales, from 60,976 bales yesterday.

Chart Trends: Trends in Cotton are down with objectives of 8880 and 8520 December. Support is at 8890, 8800, and 8590 December, with the resistance of 9030, 9110, and 9180 December.

FCOJ

General Comments: FCOJ closed higher on weather concerns, especially for Brazil but also for Florida and Mexico. 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 higher and London closed mixed yesterday. Tight supplies available for export from origin was a supportive factor. 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 with smaller production but have been weaker since the freeze event. The damage from the Brazil freeze several weeks ago is apparent. Some trees were killed and will have to be replaced. Dry weather and warm temperatures are reported now. 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 slightly lower today at 2.163 million bags. The ICO daily average price is now 167.86 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 September futures and that total delivery for the month are now 1,077 contracts.

Chart Trends: Trends in New York are mixed. Support is at 182.00, 178.00, and 176.00 December, and resistance is at 189.00, 191.00, and 194.00 December. Trends in London are mixed up with objectives of 2110, 2150, and 2170 November. Support is at 2130, 2100, and 2060 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 mixed. Ideas are that the fallout from Evergrande in China would be limited. There is talk of a squeeze developing as the market moves to September expiration. The reduced production potential from Brazil is still impacting the market. 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. Temperatures should average above normal.

Chart Trends: Trends in New York are mixed. Support is at 1950, 1930, and 1920 March, and resistance is at 2000, 2030, and 2050 March. Trends in London are mixed. Support is at 496.00, 485.00, and 481.00 December, and resistance is at 505.00, 511.00, and 520.00 December.

Cocoa

General Comments: New York and London closed higher yesterday 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 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.

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 5.529 million bags.

Chart Trends: Trends in New York are mixed to down with objectives of 2520, 2420, and 2400 December. Support is at 2570, 2540, and 2520 December, with resistance at 2650, 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.