MF Global: Positions of US customers held by MF Global were moved by the various exchanges to new clearing firms late last week and over the weekend, and overseas positions continued to be moved yesterday. Client money in segregated funds remains at MF Global, with no official indication given as to when they might be moved. There are no new reports regarding the missing funds. CME revised its margins over the weekend in an effort to aid those with positions at new firms and money at MF Global yet maintain market integrity. The margins at least partially reflect the money posted by CME on behalf of those with positions at the new trade houses.

COTTON
General Comments: Futures were a little lower yesterday, with funds position rolling the main feature of trade. 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 think 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 showers and rain should develop today and then move east through Thursday, then dry weather. Temperatures will average near to below normal. Texas will be mostly dry. Temperatures will average mostly near to below normal. The USDA average spot price is now 94.33 ct/lb. ICE said that certified Cotton stocks are now 0.035 million bales, from 0.035 million yesterday. USDA said that Cotton is now 70% harvested. India said that Cotton arrivals in October were down 30% from last year as rains hit the crops. Arrivals were 1.48 million bales, from 2.1 million bales last year.
Chart Trends: Trends in Cotton are mixed. Support is at 95.00, 94.00, and 90.00 December, with resistance of 99.00, 100.00, and 103.00 December.

11/07 04:06p CST DJ ICE Cotton Speculation And Hedging Report – Nov 7
For Nov 4 long and short positions in contracts.
SPECULATION LONG ACCTS PCT SHORT ACCTS PCT
Total 65,380 1,024 39.7 56,675 1,160 34.4
HEDGING
Total 99,493 301 60.3 108,198 315 65.6
GRAND TOTAL: 164,873 1,325 100.0 164,873 1,475 100.0

FCOJ
General Comments: Futures closed mostly lower yesterday in light volume trading. Traders are waiting for the USDA production reports, and many expect USDA to keep production estimates about unchanged. 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 should see drier weather. Early harvest is getting underway. Trends are up on the charts. Brazil is seeing warm temperatures. Dry weather is seen this week 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 171.00, 167.00, and 166.00 January, with resistance at 176.00, 179.00, and 184.00 January.

11/07 04:08p CST DJ ICE FCOJ Speculation And Hedging Report – Nov 7
For Nov 4 long and short positions in contracts.
SPECULATION LONG ACCTS PCT SHORT ACCTS PCT
Total 15,398 417 57.5 5,399 119 20.2
HEDGING
Total 11,368 99 42.5 21,367 55 79.8
GRAND TOTAL: 26,766 516 100.0 26,766 174 100.0

COFFEE
General Comments: Futures were higher in all three markets again yesterday as traders were more willing to take new positions. There was no mass liquidation of positions by MF Global clients and this brought some relief to the trade. Loss reports from Central America are coming in from the rains in recent weeks, but it is mostly dry there now. Some areas lost up to 25% of crops, according to reports, and total losses could be at least 1.0 million bags in Central America. 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. 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 1.293 million bags. The ICO composite price is now 193.92 ct/lb. Brazil should see mostly dry conditions. Temperatures will average 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 241.00, 243.00, and 252.00 December. Trends in London are mixed. Support is at 1800, 1790, and 1760 January, and resistance is at 1900, 1915, and 1930 January. Trends in Sao Paulo are mixed. Support is at 326.00, 318.00, and 316.00 December, and resistance is at 333.00, 335.00, and 340.00 December.

SUGAR
General Comments: Futures closed mixed to lower yesterday on doubts about the European crisis resolution and the MF Global situation. It was another light volume session. Speculators appeared to be the best sellers, but massive liquidation trading did not appear as the various parties involved worked to find a resolution to the MF Global problems. 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 as reasons to keep the selling pressure on. 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 above normal. Ukraine has produced 1.58 million tons of Sugar from beets, up 37.5% from last year. Russia has produced 2.89 million tons of Sugar from beets, from 2.055 million last year.
Chart Trends: Trends in New York are mixed. Support is at 2480, 2440, and 2400 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 higher in New York and in London yesterday on hopes for a resolution to the problems in Europe and the MF Global situation. 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 stocks are lower today and are now about 3.652 million bags.
Chart Trends: Trends in New York are mixed. Support is at 2670, 2620, and 2610 December, with resistance at 2770, 2790, and 2850 December. Trends in London are mixed. Support is at 1660, 1650, and 1630 December, with resistance at 1720, 1750, and 1760 December.

Questions Ask Jack Scoville today at 312-264-4322