COTTON
General Comments: Futures were lower yesterday on the extreme US Dollar strength. The USDA reports that showed less production and potentially less ending stocks for the crop year were mostly ignored. Speculators were seen as the best sellers. The situation in Europe still has traders nervous, and any loss of demand will hurt. Traders are also getting ready for the USDA production reports on Wednesday. Many thought that USDA could cut production as there are ideas that the Texas estimate was too high given the weather. The harvest is still moving forward in Texas and weather there remains dry, although showers were reported over the weekend. Chart trends are mixed.
Overnight News: The Delta and Southeast will get dry weather through the weekend. Temperatures will average near to above normal this weekend after a chilly day today. Texas will be mostly dry. Temperatures will average mostly near to above normal. The USDA average spot price is now 94.38 ct/lb. ICE said that certified Cotton stocks are now 0.037 million bales, from 0.036 million yesterday. USDA said that net Upland Cotton export sales were 998,000 bales this year and 24,900 bales next year. Net Pima sales were 1,900 bales this year and 0 bales next year.
Chart Trends: Trends in Cotton are mixed. Support is at 95.00, 94.00, and 90.00 December, with resistance of 98.00, 99.00, and 100.00 December.

FCOJ
General Comments: Futures closed lower yesterday for chart based reasons. Charts show that the market may have failed at resistance areas this week, so speculators are liquidating longs and some producers are selling. The tropics are mostly quiet now, and the threat to Florida is passing. But, there is still potential for a storm to develop based on climatology. 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 and this weekend should see mostly dry weather. Early harvest is continuing. Trends are mixed on the charts. Brazil is seeing warm temperatures. Dry weather is seen through this weekend 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. ICE said that 0 contracts were delivered today and that total deliveries for the month are 2 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 167.00, 166.00, and 163.00 January, with resistance at 176.00, 179.00, and 184.00 January.

COFFEE
General Comments: Futures were lower yesterday, with speculators seen on both sides of the market. There was no real news for Coffee or about MF Global, but traders continued to worry about the European situation, and now about Italy more than anywhere else. Loss reports from Central America are coming in from the rains in recent weeks, but it is mostly dry there now. The potential for big crops in Vietnam and Brazil later on keep many traders bearish about prices next year. Drier weather is forecast for Brazil this week, and dryness now would hurt flowering and cherry formation. Drier weather is also reported in Vietnam, which is good for harvest. 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. Central America and Colombia are offering to sell new crop with high differentials.
Overnight News: Certified stocks are higher today and are about 1.316 million bags. The ICO composite price is now 192.43 ct/lb. Brazil should see mostly dry conditions. Temperatures will average near to above normal. The ICO said that September exports were 7.04 million bags. That made 2010-11 exports 103.1 million bags, up 9.4% from last year and a new record.
Chart Trends: Trends in New York are mixed. Support is at 225.00, 220.00, and 217.00 December, and resistance is at 232.00, 237.00, and 241.00 December. Trends in London are mixed. Support is at 1800, 1790, and 1760 January, and resistance is at 1840, 1900, and 1915 January. Trends in Sao Paulo are mixed. Support is at 318.00, 316.00, and 313.00 December, and resistance is at 333.00, 335.00, and 340.00 December.

SUGAR
General Comments: Futures closed lower yesterday on the European crisis and the sharp move higher in the US Dollar. Speculators appeared to be the best sellers. 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 in recent weeks. 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 as reasons to keep the selling pressure on. Northern hemisphere crops are coming now, and Europe and Russia are 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 above normal.
Chart Trends: Trends in New York are mixed. Support is at 2540, 2520, and 2480 March, and resistance is at 2610, 2630, and 2690 March. Trends in London are mixed. Support is at 649.00, 646.00, and 643.00 March, and resistance is at 662.00, 667.00, and 686.00 March.

COCOA
General Comments: Futures were lower in New York and in London yesterday on what appeared to be speculative long liquidation tied to the strong rally in the US Dollar and the meltdown fears about Europe. Talk of oversupply in the market for Cocoa still are keeping prices down overall, but seems to have run out as a market force as arrivals from farmers have been slow. 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: Widely scattered showers are expected in West Africa. Temperatures will average near normal.
Chart Trends: Trends in New York are mixed. Support is at 2550, 2530, and 2500 December, with resistance at 2610, 2620, and 2670 December. Trends in London are down with objectives of 1480 December. Support is at 1600, 1570, and 1540 December, with resistance at 1650, 1660, and 1690 December.

Questions Ask Jack Scoville today at 312-264-4322