COTTON
General Comments: Cotton closed a little higher in recovery trading and trends remain down in this market. The export sales report was positive for prices once again last week. The US Dollar has been weaker and economic data has been positive. The weekly export sales report was strong. There are still many concerns about demand from China and the rest of Asia due to the slow economic return of China in the world market. There are production concerns about Australian and Indian Cotton as both countries are likely to suffer the effects of El Nino starting this Fall.
Overnight News: The Delta will get isolated showers and below normal temperatures. The Southeast will see isolated showers and below normal temperatures. Texas will have mostly dry conditions and below normal temperatures. The USDA average price is now 74.42 ct/lb. ICE daily certified stocks are now 87,769 bales, from 87,769 bales yesterday. ICE said that 0 notices were posted for delivery against December contracts and that total deliveries for the month are now 787 contracts.
Chart Trends: Trends in Cotton are mixed to down with no objectives. Support is at 798.90, 77.70, and 76.80 March, with resistance of 80.20, 81.00 and 82.00 March.
General Comments: FCOJ closed sharply higher, and January closed limit up. There are no weather concerns to speak of for Florida right now with the hurricane season all but over and no major storms hitting the state recently. Reports of short supplies in Florida and Brazil are around. Futures are also being supported in forecasts for an above average hurricane season that could bring a storm to damage the trees once again. Historically low estimates of production due in part to the hurricanes and in part to the greening disease that have hurt production, but conditions are significantly better now with scattered showers and moderate temperatures.
Overnight News: Florida should get isolated showers. Temperatures will average near normal. Brazil should get mostly dry conditions and near to above normal temperatures.
Chart Trends: Trends in FCOJ are mixed. Support is at 398.00, 391.00, and 382.00 January, with resistance at 422.00, 430.00, and 436.00 January.COFFEE
General Comments: New York closed higher as Brazil weather remains uneven for the best crop production and London closed mixed to higher on reports of increasing Coffee availability from Vietnam keeping January lower. The forecasts now call for a return to the dominant pattern of a wet south and a dry north this week. Some northern areas will get a few showers and these areas might include some Coffee production regions. The lack of offers from Asia, mostly from Vietnam but also Indonesia have been a main feature of the market, but the offers are starting to improve. Offers from Brazil and other countries in Latin America should be increasing.
Overnight News: ICE certified stocks are higher today at 0.293 million bags. The ICO daily average price is now 163.41 ct/lb. Brazil will get mostly dry conditions with near to above normal temperatures. Central America will get mostly dry conditions. Vietnam will see scattered showers. ICE NY said that there were 0 contracts tendered for delivery against December contracts and that total deliveries for the month are 94 contracts.
Chart Trends: Trends in New York are mixed. Support is at 165.00, 163.00, and 161.00 March, and resistance is at 176.00, 182.00 and 188.00 March. Trends in London are mixed to up with objectives of 2610 and 2700 January. Support is at 2510, 2470, and 2440 January, with resistance at 2570, 2600, and 2620 January.SUGAR
General Comments: New York and London closed lower in choppy trading on the Unica reports that showed strong production. Brazil weather forecasts now call for a return to wet in the south and hot and dry in central and northern areas this week. The market continues to see stressful conditions in Asian production areas. The Brail rains is underway now and have been heavy in the south. There are worries about the Thai and Indian production potential due to El Nino. Offers from Brazil are still active but other origins are still not offering or at least not offering in large amounts, and demand is still strong. Brazil ports are very congested, so shipment of Sugar has been slower. Unica said that the Sugar crush was 34.8 million tons for the first half of November, up 32% from the same period last year. The mills produced 2.2 million tons of Sugar and 1.6 billion liters of Ethanol, both about 30% above last year.
Overnight News: Brazil will get mostly dry conditions in the south and scattered showers in the north. Temperatures should average near to below normal. India will get mostly dry conditions and below normal temperatures.
Chart Trends: Trends in New York are mixed to down with objectives of 2640 and 2460 March. Support is at 2670, 2650, and 2630 March and resistance is at 2740, 2760, and 2790 March. Trends in London are mixed. Support is at 734.00, 729.00, and 719.00 January, with resistance at 750.00, 760.00, and 766.00 January.COCOA
General Comments: New York and London closed higher and at new highs for the move. Price trends on the weekly charts for both markets are pointed higher. Traders are worried about another short production year and these feelings have been enhanced by El Nino that could threaten West Africa crops with hot and dry weather later this year. The main crop harvest comes into focus and as farmers in West Africa report that many areas have too much rain that has caused harvest delays and could lead to disease. Scattered to isolated showers are reported in the region now. Ideas of tight supplies remain based on more reports of reduced arrivals in Ivory Coast and Ghana continue, Midcrop production ideas are lower now with diseases reported in the trees due to too much rain that could also affect the main crop production.
Overnight News: Isolated showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see scattered showers. Temperatures should average near normal. Brazil will get isolated showers and near to above normal temperatures. ICE certified stocks are lower today at 4.395 million bags. ICE NY said that 608 notices were posted for delivery against December contracts and that total deliveries for the month are now 608 contracts.
Chart Trends: Trends in New York are up with objectives of 4210 December. Support is at 4040, 4020, and 3980 March, with resistance at 4210, 4240, and 42=70 March. Trends in London are mixed to up with no objective. Support is at 3470, 3400, and 3360 March, with resistance at 36570, 3600, and 3620 March.More By This Author:Grains Report – Tuesday, Nov. 28Softs Report – Monday, Nov. 27Grains Report – Tuesday, Nov. 21
