Softs Report - Monday, Oct. 26

Overnight News: Florida should get isolated showers. Temperatures will average near to above normal. Brazil should get scattered showers and near to above normal temperatures.

Chart Trends: Trends in FCOJ are mixed. Support is at 115.00, 110.00, and 109.00 November, with resistance at 119.00, 121.00, and 126.00 November.


General Comments: Futures were lower last week in New York and slightly lower in London. London had been better supported due to stronger demand ideas and worries about the weather in Vietnam and the country is getting too much rain now and flooding is being reported in the Central Highlands. The rains should continue for another week. The demand from coffee shops and other foodservice operations is still at very low levels as consumers are still drinking coffee at home. Reports indicate that consumers at home are consuming blends with more Robusta and less Arabica. The Brazil harvest is over and producers are selling due to the recent extreme weakness in the Real. Ideas are that production is very strong this year as it is the on-year for the trees. Central America is also offering right now and offers are increasing. The weather is good in Colombia and Peru.

Overnight News: ICE certified stocks are lower today at 1.129 million bags. The ICO daily average price is now 104.49 ct/lb. Brazil will get scattered showers with above normal temperatures. Vietnam will see light to moderate showers.

Chart Trends: Trends in New York are mixed. Support is at 103.00, 100.00, and 98.00 December, and resistance is at 107.00, 109.00, and 111.00 December. Trends in London are mixed. Support is at 1240, 1220, and 1210 November, and resistance is at 1280, 1320, and 1340 November.


General Comments: New York was higher and London was a little lower. Brazil mills have been producing more Sugar and less Ethanol due to weak world and domestic petroleum prices. About 45% of the crush this year will go to Sugar, from 35% last year. It has been dry lately to affect Sugarcane production and producers are less aggressive sellers. Rains are falling now to improve Sugarcane's growing conditions. India has a very big crop of Sugarcane this year but the exports have been hard to make. The Indian government has not yet announced the subsidy for exporters of Sugar so no one knows how much to charge yet. Thailand might have less this year due to reduced planted area and erratic rains during the monsoon season. Rains are moving through the country now from Vietnam and the Pacific. The EU is having problems with its Sugarbeets crop due to weather and disease. Demand appears to be about average.

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Disclaimer: Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also ...

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