COTTON
General Comments: Futures were a little lower again yesterday on European economic fears. There appears to be some problems with the details of any agreement between France, Germany, and other EU countries on what the support and funding levels will be. But progress is being made in talks and it still looks like there will be announcements made this weekend. 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 be disappearing. Chart trends are mixed for the short term. Demand remains soft on the export side.
Overnight News: The Delta and Southeast will get mostly dry conditions, but showers are possible on Sunday. Temperatures will average below normal through this weekend, but will turn warmer next week. Texas will be mostly dry. Temperatures will average mostly near to above normal. The USDA average spot price is now 96.80 ct/lb. ICE said that certified Cotton stocks are now 0.019 million bales, from 0.019 million yesterday. USDA said that net Upland Cotton export sales were 59,300 bales this year and 0 bales next year. Net Pima sales were 800 bales this year and 0 bales 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 a little lower yesterday in consolidation trading. Bulls were able to push futures to new highs for the move in early trading, but were unable to sustain the move and had to sell at the end. Florida weather remains a negative for prices for now, but some big rains are possible in southern sections of the state later in the week. Florida has had good weather so far this year with showers most days and warm temperatures. This week and this weekend should see drier weather now as the system that brought some big storms to southern areas moves away. 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 rains today, then drier weather. Temperatures will average below normal.
Chart Trends: Trends in FCOJ are up with objectives of 176.00 and 191.00 November. Support is at 171.00, 170.00, and 167.00 November, with resistance at 175.00, 178.00, and 179.00 November.

COFFEE
General Comments: Futures were lower in London due to the economic issues in the EU, but higher in Sao Paulo and New York on weather fears. 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. 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. 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. Central America and Colombia are offering to sell new crop with high differentials. Rains continue in the forecast for Central America and Colombia. Chart trends are trends are mixed.
Overnight News: Certified stocks are a little lower today and are about 1.365 million bags. The ICO composite price is now 195.22 ct/lb. Brazil should see mostly dry conditions. Temperatures will average near to below normal through this weekend, then near to above normal.
Chart Trends: Trends in New York are mixed. Support is at 231.00, 228.00, and 225.00 December, and resistance is at 240.50, 246.00, and 252.00 December. Trends in London are mixed to down with objectives of 1790 November. Support is at 1860, 1840, and 1830 November, and resistance is at 1940, 1990, and 2020 November. Trends in Sao Paulo are mixed to up with objectives of 342.00 and 408.00 December. Support is at 309.00, 306.00, and 304.00 December, and resistance is at 327.00, 335.00, and 342.00 December.

SUGAR
General Comments: Futures closed lower yesterday on liquidation trading. It was a reversal type day that could see follow through selling today. Buying interest seems to dry up each time the market challenges above 2800 NY March. Sugar has seen new speculative buying as chart trends have turned up again for at least the short term, but this buying seemed to run out and many of these buyers are now moving out of these positions. 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. 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 last week that could have damaged Sugarcane and other crops. Damage reports might be heard this week, but initial 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.
Overnight News: Mostly dry conditions are expected in Brazil. Temperatures should be near to below normal. India said it plans to export another 2.0 million tons of Sugar this year, but will do this in stages. It has already permitted sales of 2.6 million tons this year.
Chart Trends: Trends in New York are mixed to down with objectives of 2660 and 2570 March. Support is at 2630, 2540, and 2480 March, and resistance is at 2740, 2840, and 2860 March. Trends in London are mixed to down with objectives of 682.00 and 661.00 December. Support is at 693.00, 685.00, and 677.00 December, and resistance is at 703.00, 722.00, and 724.00 December.

COCOA
General Comments: Futures were higher in New York and in London yesterday on European economic concerns. US Dollar weaknes early in the day supported prices in New York over those in London on spreads. 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 little changed today and are now about 3.809 million bags. Brazil Cocoa arrivals are 39,463 bags for this week.
Chart Trends: Trends in New York are mixed to down with objectives of 2500 and 2350 December. 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