COTTON
General Comments: Futures were a little higher yesterday. Speculators were said to be the best buyers. The trade was quiet, with traders showing little interest in price positive outside markets or the news. Europe is moving slowly to resolve its crisis and Chinese economic data was positive. However, export demand remains weak. Commercials have moved to the sidelines after being the best market support over the last month or so. Chart trends are mixed for the short term, but the market acts weak.
Overnight News: The Delta and Southeast will get mostly dry conditions, but showers are possible on Thursday. Temperatures will average near to above normal much of the week, but near to below normal by Friday. Texas will be mostly dry, but showers are possible Wednesday. Temperatures will average mostly near to above normal early this week and near to below normal late this week. The USDA average spot price is now 95.46 ct/lb. ICE said that certified Cotton stocks are now 0.022 million bales, from 0.020 million yesterday.
Chart Trends: Trends in Cotton are mixed to down with objectives of 95.00 and 90.00 December. Support is at 95.00, 94.00, and 90.00 December, with resistance of 99.00, 103.00, and 105.00 December.

10/24 15:00 CDT U.S. weekly crop progress highlights – USDA
WASHINGTON, Oct. 24 (Reuters) – Highlights of the U.S. Agriculture
Department’s weekly crop progress report (all numbers expressed in percent):
Week ended 10/23/11 10/16/11 10/23/10 5-year
COTTON CONDITION
– Excellent 5 5 14 N/A
– Good 24 25 39 N/A
– Fair 27 29 31 N/A
– Poor 19 19 12 N/A
– Very Poor 25 22 4 N/A
COTTON BOLLS OPEN 95 94 97 93
COTTON HARVESTED 44 34 49 36

DJ ICE Cotton Speculation And Hedging Report – Oct 24
For Oct 21 long and short positions in contracts.
SPECULATION LONG ACCTS PCT SHORT ACCTS PCT
Total 64,900 1,048 41.3 58,849 1,485 37.4
HEDGING
Total 92,390 258 58.7 98,441 266 62.6
GRAND TOTAL: 157,290 1,306 100.0 157,290 1,751 100.0

FCOJ
General Comments: Futures closed higher yesterday as a hurricane formed south of the Yucatan. It is not going anywhere, but could develop and eventually make a move towards Florida. Florida weather remains a negative for prices for now. Florida has had good weather so far this year with showers most days and warm temperatures. This week should see drier weather. Early harvest is getting underway. Trends are up on the charts. Brazil is seeing warm temperatures. Dry conditions or light showers are seen this week for Brazil.
Overnight News: Florida weather forecasts call for mostly dry weather, but showers are possible about Thursday. Temperatures will average near to above normal.
Chart Trends: Trends in FCOJ are up with objectives of 191.00 November. Support is at 175.00, 173.00, and 170.00 November, with resistance at 182.00, 184.50, and 186.00 November.

COFFEE
General Comments: Futures were higher in all markets due to ideas the economic issues in the EU might soon be resolved and weather fears for Central and South America where rain threatens crops again this week. The potential for big crops in Vietnam and Brazil later on keeps people wondering about upside potential, but trees are just starting to flower in Brazil and Vietnam and other countries in Southeast Asia has seen a lot of rain recently that could hurt cherries. Drier weather is forecast for Brazil this week, and dryness now would hurt flowering and cherry formation. Weather is less than perfect in other places too, especially in Central America and Colombia where big and flooding rains have been reported in the last week. More big rains are possible for parts of Central America this week as a tropical low forms in the eastern seas, but most affected areas will be in the east and north. Futures still have to deal with a tight supply situation for the short term, and the possibility of less than expected Arabica Coffee produced over the next year. Differentials in all of Latin America remain strong. There has been some talk there that the Brazil production will not be as big as some estimates seen recently. Central America and Colombia are offering to sell new crop with high differentials..
Overnight News: Certified stocks are lower today and are about 1.315 million bags. The ICO composite price is now 200.69 ct/lb. Brazil should see showers tomorrow and Thursday, then mostly dry conditions. Temperatures will average near to above normal. Vietnam exported 30,000 tons of Coffee in October, from 27,000 tons in September and 57,000 tons last year. Marketing year exports were 1.147 million tons, down 1.1% from 2009-10.
Chart Trends: Trends in New York are up with objectives of 247.00, 263.00, and 264.00 December. Support is at 243.00, 239.00, and 237.00 December, and resistance is at 252.00, 256.00, and 263.00 December. Trends in London are mixed to down with objectives of 1790 November. Support is at 1880, 1830, and 1780 November, and resistance is at 1910, 1950, and 1980 November. Trends in Sao Paulo are up with objectives of 342.00 and 408.00 December. Support is at 335.00, 327.00, and 318.00 December, and resistance is at 342.00, 344.00, and 347.00 December.

SUGAR
General Comments: Futures closed higher yesterday along with strength in world financial markets. Ideas are that a better world economy could help demand. Supply side fundamentals for Sugar remain weak. India is still offering and expects to sell more as the country tries to work off surplus production and stocks. There were some flooding rains in Thailand last week that could have damaged Sugarcane and other crops. Reports are that losses are minor and most of the problems will be due to delayed crushing and deliveries rather than to crop losses. Bears keep pointing to increased supplies around the world and no demand this year from India as reasons to see futures move lower over time. Northern hemisphere crops are coming soon, and Europe is said to have very good crops this year. India now says it might decide on more Sugar exports in the beginning of November. Russia said it plans to stop importing Sugar by the end of the year due to big crops there. India will permit 1.7 million tons of open market Sugar fopr November. Thailand has signed contracts to export up to 150,000 tons of Raw Sugar from new crop this week, mostly for December shipment.
Overnight News: Mostly dry conditions or light showers are expected in Brazil. Temperatures should be near to below normal.
Chart Trends: Trends in New York are mixed to down with objectives of 2570 March. Support is at 2630, 2610, and 2540 March, and resistance is at 2740, 2840, and 2860 March. Trends in London are mixed. Support is at 724.00, 722.00, and 703.00 December, and resistance is at 730.00, 749.00, and 751.00 December.

COCOA
General Comments: Futures were higher in New York and in London yesterday on strength seen in outside markets. Talk of oversupply in the market for Cocoa still are keeping prices down overall, but futures have made new contract lows and might have already priced in the increased supplies for now as there has been no real follow through to the downside. Trends are mixed for the short term on the charts. There is still no real reason to buy for now, but next year could be different as many analysts say that crop production potential in western Africa has been hurt by some poor weather seen in the last month. However, current supplies are ample and should help cover any short production potential for next year. Weather is called good for production in West Africa now.
Overnight News: Scattered showers and storms are expected in West Africa. Temperatures will average near normal. ICE stocks are lower today and are now about 3.777 million bags. Ivory Coast purchases are 28,142 tons so far this year, down 32% from last year. Arrivals were 13,291 tons, also down 32% from last year.
Chart Trends: Trends in New York are mixed. Support is at 2560, 2540, and 2530 December, with resistance at 2650, 2670, and 2690 December. Trends in London are mixed to down with objectives of 1620 and 1480 December. Support is at 1650, 1630, and 1600 December, with resistance at 1690, 1720, and 1750 December.

Questions Ask Jack Scoville today at 312-264-4322