COTTON
General Comments: Futures were a little lower again yesterday on European economic fears and poor weekly export sales. There still 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. Cotlook said that demand could drop as mills cut back there. 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. Trends are turning down with the price action yesterday.
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 94.19 ct/lb. ICE said that certified Cotton stocks are now 0.019 million bales, from 0.019 million yesterday. USDA said that its Upland Cotton weekly world market price is now 90.01 ct/lb.
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 103.00, 105.00, and 107.00 December.

FCOJ
General Comments: Futures closed higher yesterday. Bulls were able to push futures to new highs for the move in early trading, and the rally held through the close. 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 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 170.00, 167.00, and 165.00 November, with resistance at 175.00, 178.00, and 179.00 November.

DJ CORRECT: Florida FCOJ Movement And Pack – Oct 21
(“Florida FCOJ Movement And Pack – Oct 21,” at 09:27 EDT, incorrectly stated
data for cumulative imports for Oct 08. The correct version follows:)
In gallons. Source: Florida Department of Citrus (FDOC).
2010-2011
Oct 08 Oct 01 Year Ago
MOVEMENT
Retail 160,581 113,137 175,071
Institutional 335,882 329,515 339,014
Bulk 1,605,842 1,317,925 2,164,737
Total 2,102,305 1,760,577 2,678,822
Cumulative 2,102,305 148,469,898 2,678,822
IMPORTS
Foreign 0 9,556 0
Cumulative 0 18,329,865 0
RECEIPTS
Domestic 0 0 5,596
PACK
Retail 159,289 172,033 275,906
Institutional 317,476 281,456 299,328
Bulk 629,957 619,299 721,925
Less Reprocessed 1,083,700 1,057,711 1,273,653
Net 23,021 15,077 23,506
Cumulative 23,021 82,106,728 23,506
Inventory 49,557,826 51,626,258 92,253,571

COFFEE
General Comments: Futures were lower in all markets due to the economic issues in the EU, but weather fears for Central and South America provided some support. 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 estimates seen recently. Central America and Colombia are offering to sell new crop with high differentials. Rains continue in the forecast for Central America and Colombia, but Central America is drier now. Big winds are possible in Central America this weekend. Chart trends are trends are mixed.
Overnight News: Certified stocks are lower today and are about 1.335 million bags. The ICO composite price is now 191.93 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 228.00, 225.00, and 220.00 December, and resistance is at 236.00, 240.50, and 246.00 December. Trends in London are down with objectives of 1790 November. Support is at 1780, 1750, and 1735 November, and resistance is at 1830, 1890, and 1950 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 again yesterday on follow through selling. Lows were made early in the session and then what appeared to be consumer buying showed up. 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. 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 eyar due to big crops there.
Overnight News: Mostly dry conditions 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 to down with objectives of 661.00 December. Support is at 677.00, 665.00, and 659.00 December, and resistance is at 693.00, 698.00, and 703.00 December.

COCOA
General Comments: Futures were lower in New York and in London yesterday on European economic concerns. 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. Ivory Coast biweekly export declarations are 37,496 tons, almost triple those of last year. Indonesia has lowered export taxes for Cocoa.
Chart Trends: Trends in New York are mixed to down with objectives of 2500 and 2350 December. Support is at 2540, 2530, and 2520 December, with resistance at 2610, 2620, and 2650 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