COTTON
General Comments: Futures were a little higher yesterday. Speculators were said to be the best buyers, and traders said it was a short covering rally. 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, but the finance ministers meeting was cancelled which caused some early selling pressure. 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.
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 tonight and tomorrow. 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 97.20 ct/lb. ICE said that certified Cotton stocks are now 0.024 million bales, from 0.022 million yesterday.
Chart Trends: Trends in Cotton are mixed to down with objectives of 95.00 and 90.00 December. Support is at 98.00, 95.00, and 94.00 December, with resistance of 103.00, 105.00, and 107.00 December.

FCOJ
General Comments: Futures closed higher yesterday as a hurricane grew south of the Yucatan. It is not going anywhere, but should develop and eventually make a move towards Florida, but weaken as it does so. It might not be more than a tropical storm by the time it reaches the state, and might be less 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. Showers are seen this week for Brazil.
Overnight News: Florida weather forecasts call for mostly dry weather today, but showers are possible starting Thursday. Temperatures will average near to above normal.
Chart Trends: Trends in FCOJ are up with objectives of 191.00 November. Support is at 179.00, 178.00, and 175.00 November, with resistance at 184.50, 186.00, and 188.00 November.

DJ ICE FCOJ Speculation And Hedging Report – Oct 25
For Oct 21 long and short positions in contracts.
SPECULATION LONG ACCTS PCT SHORT ACCTS PCT
Total 12,493 457 49.6 4,585 136 18.2
HEDGING
Total 12,711 98 50.4 20,619 55 81.8
GRAND TOTAL: 25,204 555 100.0 25,204 191 100.0

DJ Florida FCOJ Movement And Pack – Oct 25
In gallons. Source: Florida Department of Citrus (FDOC).
2010-2011
Oct 15 Oct 08 Year Ago
MOVEMENT
Retail 151,476 160,581 99,270
Institutional 399,362 335,882 380,302
Bulk 1,561,526 1,605,842 2,131,757
Total 2,112,364 2,102,305 2,611,329
Cumulative 4,214,669 2,102,305 5,290,151
IMPORTS
Foreign 16,071 0 396,309
Cumulative 16,071 0 396,309
RECEIPTS
Domestic 0 0 591,915
PACK
Retail 107,543 159,289 188,547
Institutional 376,834 317,476 271,025
Bulk 731,696 629,957 772,390
Less Reprocessed 1,171,854 1,083,700 1,211,079
Net 44,219 23,021 20,883
Cumulative 67,240 23,021 37,050
Inventory 47,528,243 49,557,826 90,669,330

COFFEE
General Comments: Futures were sharply lower in all markets due to ideas the economic issues in the EU might not be resolved soon. Prime ministers from the EU are meeting today as scheduled, but a finance ministers meeting was cancelled. This took futures lower, and the market hit stops to move to the lows of the day. Weather fears for Central and South America where rain threatened crops last week are easing as a hurricane forming south of the Yucatan still appears ready to move to the north and east and away from Central America. 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 remains 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..
Overnight News: Certified stocks are lower today and are about 1.296 million bags. The ICO composite price is now 195.24 ct/lb. Brazil should see showers today and Thursday, then mostly dry conditions. Temperatures will average near to above normal. Japan stocks are 154,450 tons at the end of September.
Chart Trends: Trends in New York are mixed to up with objectives of 247.00, 263.00, and 264.00 December. Support is at 228.00, 225.00, and 220.00 December, and resistance is at 239.00, 243.00, and 252.00 December. Trends in London are mixed to down with objectives of 1790 November. Support is at 1830, 1780, and 1750 November, and resistance is at 1880, 1910, and 1950 November. Trends in Sao Paulo are mixed to up with objectives of 342.00 and 408.00 December. Support is at 327.00, 318.00, and 313.00 December, and resistance is at 335.00, 340.00, and 342.00 December.

SUGAR
General Comments: Futures closed lower yesterday along with weakness in world financial markets. Traders liquidated positions after hearing news that EU finance ministers would not meet today as had been previously expected. Ideas are that a solution to the problems over there has not been found. 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.
Overnight News: Mostly dry conditions or light showers are expected in Brazil. Temperatures should be near to below normal. The EU expects to export 2.2 million tons of Sugar this marketing year after a jump in production from last year.
Chart Trends: Trends in New York are mixed. Support is at 2630, 2610, and 2540 March, and resistance is at 2740, 2770, and 2840 March. Trends in London are mixed to up with objectives of 756.00 and 802.00 December. Support is at 724.00, 722.00, and 718.00 December, and resistance is at 735.00, 749.00, and 751.00 December.

COCOA
General Comments: Futures were higher in New York and in London yesterday in consolidation trading. 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 3.754 million bags. Ivory Coast arrivals are estimated at 50,148 tons so far this year, from 89,388 tons last year.
Chart Trends: Trends in New York are mixed. Support is at 2610, 2590, and 2560 December, with resistance at 2650, 2670, and 2690 December. Trends in London are mixed. Support is at 1660, 1650, and 1630 December, with resistance at 1690, 1720, and 1750 December.

Questions Ask Jack Scoville today at 312-264-4322