COTTON
General Comments: Futures were higher yesterday after USDA reported very strong weekly export sales. The sales of almost 1.0 million bales of Cotton included massive purchases by the Chinese. It was a demand shot in the arm for a market that needed one. Even so, the huge export demand was not enough to force the market to limit up, and not enough for the market to change trend, either. Speculators were seen as the best buyers, but mills were active buyers as well. The situation in Europe still has traders nervous, and any loss of demand will hurt futures and kept traders from doing much overall. The USDA reports issued Wednesday should have been supportive to futures as well. 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 are possible over the weekend. Chart trends are mixed.
Overnight News: The Delta and Southeast will get dry weather through the weekend, but showers are possible early next week. Temperatures will average near to above normal this weekend after a chilly day today. Texas will be mostly dry, but showers are possible by next Tuesday. Temperatures will average above normal. The USDA average spot price is now 96.89 ct/lb. ICE said that certified Cotton stocks are now 0.037 million bales, from 0.037 million yesterday. USDA said that its Upland Cotton weekly world market price is now 86.59 ct/lb.
Chart Trends: Trends in Cotton are mixed. Support is at 98.00, 95.00, and 94.00 December, with resistance of 100.00, 103.00, and 105.00 December.

FCOJ
General Comments: Futures closed little changed yesterday after a quiet session. Charts show that the market may have failed at resistance areas this week, so speculators are liquidating longs and some producers are selling. But, no one was doing much of anything yesterday. 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. Temperatures will average near to above normal next week after a chilly weekend. ICE said that 0 contracts were delivered today and that total deliveries for the month are 3 contracts.
Chart Trends: Trends in FCOJ are mixed. Support is at 167.00, 166.00, and 163.00 January, with resistance at 175.00, 176.00, and 179.00 January.

COFFEE
General Comments: Futures were mixed to higher yesterday, with speculators seen on both sides of the market. There was little interest seen from origin or from industry. 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 weekend, and dryness now would hurt flowering and cherry formation. Some beneficial precipitation is possible early next week. 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 1.329 million bags. The ICO composite price is now 193.69 ct/lb. Brazil should see mostly dry conditions. Temperatures will average near to above normal. EU Coffee inventories are now 12.6 million bags, down 735,876 bags from September.
Chart Trends: Trends in New York are mixed. Support is at 228.00, 225.00, and 220.00 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 326.00, 333.00, and 335.00 December.

SUGAR
General Comments: Futures closed a little higher yesterday after a choppy session. The European crisis and the problems at MF Global continued to reduce trading interest overall. Speculators appeared to be on both sides of the market, and commercials were said to be quiet. 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 2520, 2480, and 2440 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 again 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. ICE said that Cocoa stocks were lower today and now 3.612 million bags.
Chart Trends: Trends in New York are mixed. Support is at 2500, 2480, and 2440 December, with resistance at 2580, 2610, and 2620 December. Trends in London are down with objectives of 1480 December. Support is at 1570, 1540, and 1510 December, with resistance at 1630, 1650, and 1660 December.

Questions Ask Jack Scoville today at 312-264-4322