COTTON

General Comments: Futures were higher yesterday on rumors of new Chinese buying. China has said that it has started to buy Corn and Soybeans to rebuild state reserves, and there are ideas it is doing the same in Cotton. There was talk that other mills in other countries are buying now as well. There has been a lot of commercial interest seen in owning Cotton on the commercial side below 100.00 basis futures, but some of this demand might disappear. Chart trends are mixed for the short term. Demand remains soft on the export side. India has had a lot of Cotton to offer, but recent floods make it hard for Pakistan to talk of exports and easy for mills there to talk of new imports from India down the road.

Overnight News: The Delta and Southeast will get mostly dry conditions. Temperatures will average above normal. Texas will be mostly dry. Temperatures will average mostly above normal. The USDA average spot price is now 97.22 ct/lb. ICE said that certified Cotton stocks are now 0.019 million bales, from 0.019 million yesterday. ICE said that 4 contracts were delivered today and that total deliveries are now 228 contracts for the month. USDA said that its weekly world market Upland Cotton price is now 91.33 ct/lb. A Chinese Cotton industry website said the country imported 252,700 tons of Cotton in September, up 26% from last year. Year to date imports are now 1.94 million tons, down 9.7% from last year. USDA said that net Upland Cotton export sales were 63,000 bales this year and 44,600 bales next year. Net Pima sales were 0 bales this year and next year.

Chart Trends: Trends in Cotton are mixed. Support is at 99.00, 95.00, and 94.00 December, with resistance of 103.00, 105.00, and 107.00 December.

FCOJ

General Comments: Futures closed higher again yesterday on what appeared to be chart based buying. Florida weather remains a negative for prices. The weather is good and there is no other news around. Florida has had good weather so far this year with showers most days and warm temperatures. This week should see showers, and there are no tropical systems in sight. Early harvest is getting underway. Trends began to turn up on the charts last week, but then stalled. Brazil is seeing warm temperatures. Rain are seen again this week in Brazil.

Overnight News: Florida weather forecasts call for drier conditions into next week. Temperatures will average near to above normal.

Chart Trends: Trends in FCOJ are up with objectives of 176.00 and 191.00 November. Support is at 165.00, 160.00, and 155.00 November, with resistance at 170.00, 171.00, and 179.00 November.

COFFEE

General Comments: Futures were higher again yesterday on speculative buying tied to a change in chart trends to up. The potential for big crops in Vietnam and Brazil later on keeps people wondering about upside potential. 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 of the huge production estimates floating around, which range as high as 60 million bags. Rains are falling now and flowering is now underway. Central America and Colombia are offering to sell new crop with high differentials, although some end of the season old crop lots are showing up now. Good weather is reported in Mexico and parts of Central America, although some parts of Central America are now getting too much rain. Chart trends are trends are turning up.

Overnight News: Certified stocks are lower today and are about 1.406 million bags. The ICO composite price is now 196.33 ct/lb. Brazil should see showers this week. Temperatures will average near normal, but near to below normal starting this weekend. El Salvador exported 60,015 bags of Coffee in September, over seven times the amount from last year. Year to date exports are now 1.73 million bags, up 74% from last year. Guatemala exported 314,372 bags of Coffee in September, from 199,355 bags last year. Year to date exports are now 3.65 million bags, up 6% from last year.

Chart Trends: Trends in New York are mixed to up with objectives of 247.00, 263.00, and 264.00 December. Support is at 231.00, 228.00, and 225.00 December, and resistance is at 240.50, 252.00, and 256.00 December. Trends in London are mixed. Support is at 1940, 1910, and 1885 November, and resistance is at 1990, 2020, and 2030 November. Trends in Sao Paulo are up with objectives of 342.00 and 408.00 December. Support is at 327.00, 309.00, and 306.00 December, and resistance is at 335.00, 342.00, and 344.00 December.

SUGAR

General Comments: Futures closed higher yesterday on what appeared to be chart based buying. There was not a lot of news for Sugar traders today. India is still offering and expects to sell more as the country tries to work off surplus production and stocks. Thailand has a lot for export as well, and Brazil is expected to be a strong producer next year after a disappointing year this year. There were some flooding rains in Thailand over the weekend that could have damaged Sugarcane. More rain is possible there soon. Pakistan said today that it could import 400,000 tons of Sugar after recent flooding rains. 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 will help offset the smaller production in Brazil. Europe is said to have very good crops this year, and Russia could export for the first time in 12 years. Chart trends are mixed.

Overnight News: Mostly dry conditions are expected in Brazil. Temperatures should be near normal.

Chart Trends: Trends in New York are up with objectives of 2840 March. Support is at 2630, 2590, and 2560 March, and resistance is at 2720, 2730, and 2840 March. Trends in London are mixed to up with no objectives. Support is at 677.00, 665.00, and 659.00 December, and resistance is at 693.00, 698.00, and 704.00 December.

COCOA

General Comments: Futures were mixed in New York and in London yesterday as early buying faded. A very strong European Grind report created the initial buying interest, but Cocoa is around so the buying met with some producer and speculative selling. Talk of over supply 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. 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 3.850 million bags.

Chart Trends: Trends in New York are mixed. Support is at 2610, 2590, and 2560 December, with resistance at 2690, 2710, and 2740 December. Trends in London are mixed to down with objectives of 1620 and 1480 December. Support is at 1690, 1660, and 1630 December, with resistance at 1720, 1750, and 1760 December.

Questions Ask Jack Scoville today at 312-264-4322

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